Labeling deadline nears; extension called unlikely
by Ken Krizner, senior editor
July 6-D-Day for the meat and poultry industries-is fast-approaching. On that day, 99 percent of the pounds of processed products distributed through about 24,000 supermarkets is supposed to contain nutrition labels as dictated by the Nutrition Labeling and Education Act of 1990.
The question is: After four years of haggling over numbers, descriptors and formats, will all processors meet the deadline?
From an approval standpoint, the answer is yes.
Cheryl Wade, FSIS director of food labeling, reports that as of May 1 her staff was reviewing 1,000 labels per day with a 24-hour approval process. With the capability of handling 2,000 labels per day, Wade does not expect an increase in approval process time.
FSIS figures indicate that more than 60 percent of labels had been approved as of May 1.
From a printing standpoint, the answer may be no.
Processors are finding that some printers have a three-month waiting list for label production.
"What I'm hearing, printers are backed up," points out Judith Quick, president of Judith Quick & Associates. "[Some printers] are not making commitments to have meat and poultry film ready by July 6."
Stephen F. Krut, executive director of the American Association of Meat Processors, adds, "Some processors are not going to be ready [by July 6]. There is a rush and the gate is crowded."
Adding to the situation was that until May 8-FDA's implementation date-FDA clients were getting printing priority over clients who needed USDA approval.
But don't expect an extension.
"I see no signs that [FSIS] will give an extension," Wade stresses. "Our implementation plan was designed around July 6. It remains that way."
And processors will not be able to ship product that does not have a nutrition label after July 6. In a recent memo to companies, FSIS said it cannot emphasize enough the urgency of submitting label applications to avoid prohibiting shipment of product.
Krut hopes FSIS issues a warning to companies not complying with the mandate, instead of holding product. "No action could be taken unless [the company] was out of compliance beyond a certain time-perhaps 30 days," he notes.
Quick stresses even a brief extension may be useless at this late date. "Processors have to be confident they can ship product on July 7," she says. "They have to get labels in for approval."
During a news conference to explain how the labels can help a person control fat intake, FDA Commissioner David Kessler read the label from a Microwave Magic cheeseburger. "Fifty-one percent of your saturated fat is in one serving. Eat two of these and you are maxed out for the day."
He added, "A simple rule: If the percent of daily value is 5 percent or less, the product is low in that particular nutrient. If you see total fat at 5 percent, you remember that rule, then you know that the product is low in total fat."
Clinton begins drive for world trade pact approval
Recognizing that the proposed world trade agreement faces trouble in Congress, President Clinton is launching a full-scale campaign to win approval this year.
The urgency reflects both mounting political problems facing the accord and the White House's view of how important the matter is to Clinton.
Cabinet members and business leaders supporting the agreement will step up lobbying efforts on Capitol Hill in hopes of bringing the issue to a climax by early autumn.
The administration is proposing to pay for the pact with more than $12 billion in tax increases and spending cuts, White House officials said.
Opponents of the General Agreement on Tariffs and Trade accord are focusing on two issues: funding and charges that the powers of the newly created World Trade Organization may challenge U.S. sovereignty.
The jewel of the agreement is to reduce tariffs worldwide by an average of more than 30 percent, with many eliminated altogether, helping to stimulate an expansion of world trade.
The meat industry has voiced support for the agreement.
USDA warns of eating undercooked hamburgers
USDA officials are kicking off a public relations campaign to warn consumers against eating undercooked hamburgers. The department has distributed more than 2 million postcards to schoolchildren and others featuring a picture of a cheeseburger and the slogan, "Before you take a bite, make sure it's brown in the middle."
The department's aim is to educate parents and children about the hazards of eating pink hamburgers that could harbor the deadly E. coli bacteria.
The postcard, signed by Secretary Mike Espy, provides safe handling instructions and warns that dishes made with ground meat be cooked until it is brown or gray in the middle, or until it reaches an internal temperature of 160 degrees F.
Firms will need 'healthy' dose of proof for claims
Most foods deemed "healthy" will have to bear new labels telling how much fat, cholesterol, calories and vitamins are in each serving.
Under rules developed by FSIS and FDA, the regulations force food companies to abide by more strict rules when describing their products. The rules are intended to ensure consumers of consistency when choosing processed food products, including meat, poultry, dairy and seafood.
To qualify for the label description of healthy, food products must:
-- Be low in fat, saturated fat, cholesterol and sodium.
-- Contain at least 10 percent of the recommended daily allowance of either vitamin A, vitamin C, iron, calcium, protein or fiber.
-- Restrict the amount of cholesterol and sodium.
The rules vary slightly according to the food. Frozen dinners, for example, must contain 10 percent of three nutrients, while raw meat and poultry must be extra lean-with less than 5 grams of fat, 2 grams of saturated fat and 95 milligrams of cholesterol.
Meat and poultry processors have until November 1995 to reformulate products and labels to meet the rules.
Fast food poised to pass general restaurant sales
Fast-food sales are poised to surpass general restaurant sales for the first time ever in 1994, thanks in large part to consumers' love of value, convenience and-most importantly-hamburgers.
Hamburger sales this year are expected to climb above $36 billion, up 5 percent from 1993, as new marketing strategies and value menus strengthen the hold that fast food has on consumers.
Fast-food eateries sales are expected to reach $86 billion this year, accounting for more than 47 percent of restaurant sales, said Wendy Webster of the National Restaurant Association.
Fast-food giants have made it so easy to customize burgers that sales have swelled 5 to 6 percent annually since 1992, according to Ron Paul, president of Technomic Inc., a Chicago-based consulting firm.
Another factor in the fast-food sales surge is that chains are now going into non-traditional outlets. Burger King, for example, is in a gas station with a speaker at the pump allowing patrons who are in a hurry to pump gas and order food at the same time.
Ohio meat convention focuses on 'family'
Hundreds of business professionals employed by Ohio-based meat packers, processors, supermarkets and other allied industry suppliers had an opportunity to learn-and be entertained-during the Ohio Association of Meat Processors annual convention.
Taking place earlier this year, the theme of the show was "Making Meat Sales Soar in '94." Sessions covered top business issues, such as building value-added products through tumbling and marinating, and an update on what constitutes sexual harassment in the workplace.
There were sessions addressing the family aspect, including the art of successfully mixing work and play in a family business, and family business financial planning-with a special focus on tax planning, succession planning and estate issues.
"The sessions on family issues were of particular importance to members attending the convention," says Ruth Ann Wilson, executive secretary of Ohio Meat Processors. "Many of [our] members are family-owned businesses."
A special trade show featured exhibits geared to the meat industry. And the annual cured meats competition drew interest from contest participants and convention attendees alike.
Ohio's largest industry is agriculture, adding nearly $57 billion annually to the state's economy, according to Gov. George V. Voinovich. The state's meat industry contributes a significant portion to the total.
With nearly 400 members, Ohio Association of Meat Processors is the second-largest state meat association in the country.