The Cost of Mandatory
Study finds reinstating mandatory country-of-origin labeling would cost more than $1 billion annually.
August 20, 2026
by the Meat Institute
Reinstating mandatory country-of-origin labeling (sometimes referred to as mCOOL) for beef and pork would impose more than $1 billion in annual costs across the U.S. meat supply chain, increasing expenses for livestock producers, meat processors, retailers and consumers while providing little evidence of increased consumer demand for labeled products. That’s according to a new economic analysis conducted by Decision Innovation Solutions that was announced July 21 by the Meat Institute.
“This study proves there are real and significant costs to mCOOL, which would raise the price of meat for consumers already struggling to afford groceries,” said Meat Institute President and CEO Julie Anna Potts. “mCOOL would burden both packers and livestock producers with added costs at a time when beef packers are losing money due to the smallest herd size in 75 years, causing record-high prices for cattle.”
“Enacting mCOOL now would raise consumer costs and could hurt consumer demand, the one force keeping the beef industry moving through a difficult cattle cycle,” Potts said. “And most importantly, there is a new voluntary ‘Product of USA’ label that is already helping consumers to purchase beef and pork born, raised and processed in the U.S. There is simply no need for a new label that will hurt the entire value chain.”
“Enacting mCOOL now would raise consumer costs and could hurt consumer demand, the one force keeping the beef industry moving through a difficult cattle cycle.” — Julie Anna Potts
The study, The Economic Impact of mCOOL on the Beef and Pork Value Chains, updates previous USDA and industry research using current production, trade, consumption and market data to evaluate the potential effects of reinstating the 2013 mandatory country-of-origin labeling requirements. The findings show that compliance costs associated with tracking, recordkeeping, product segregation, labeling and verification would substantially increase costs throughout the beef and pork value chains.
More than $1 billion in new annual costs
According to the study, reinstating mandatory country-of-origin labeling would cost the beef and pork industries approximately $1.02 billion in the first year alone, including $721 million for beef and $296 million for pork. Most of these expenses would be recurring operational costs rather than one-time investments.
Over time, those costs would continue to grow, reaching an estimated:
- $4.8 billion in five years
- $10.1 billion in 10 years
Consumers would bear much of the cost
The study concludes that compliance costs would largely be passed through the supply chain and reflected in higher food prices for families. Researchers estimate consumers would pay approximately:
- $835 million more annually for beef purchases
- $284 million more annually for pork purchases
Together, that represents more than $1.1 billion in additional food costs for consumers every year.
Processors, packers and retailers face the greatest burden
The report finds that meat packers, processors and retailers would shoulder the largest compliance burden because they would be responsible for tracking animal origin information, maintaining separate inventories, segregating products, modifying production schedules, updating labels and documenting compliance.
Among the study’s findings:
- Retail beef experiences the highest compliance costs in the supply chain.
- Beef processors and retailers account for the majority of implementation expenses.
- Retail beef compliance costs alone could reach nearly $488 million in the first year and exceed $5 billion in 10 years under one modeled scenario.
Ground beef presents unique challenges
Ground beef made up nearly 48% of all beef consumed in the United States in 2025. The study notes that ground beef would be particularly difficult and expensive to label because it often combines imported lean beef with domestic beef trimmings to achieve desired lean-to-fat ratios.
As a result, mandatory country-of-origin labeling compliance costs for ground beef alone could range from $202 million to $688 million annually, depending on the specific labeling requirements adopted.
Livestock producers would also be affected
The report finds producers would face effects from reduced market efficiency, increased documentation requirements and less flexibility throughout the supply chain. Previous USDA analyses cited in the study found mandatory country-of-origin labeling could create market disruptions that reduce livestock value and increase overall system costs.
Editor’s note: This article provided by The Meat Institute. To learn more, visit: MeatInstitute.org. [Lead photo by ablokhin from Getty Images.]
Angus Beef Bulletin EXTRA, Vol. 18, No. 8-B
Topics: Industry News , Marketing , Policy , News
Publication: Angus Beef Bulletin
Related Content
Current Angus Beef Bulletin
Our September issue focuses on the females of the herd and the records that validate them.
