We’ve got some meaty news out of the U.S. Department of Agriculture (USDA) this week: a new directive from the Food Safety and Inspection Service (FSIS) on how to verify voluntary “Product of USA” claims for beef, chicken, and egg products. The directive, issued in anticipation of the January 1 effective date for a new rule governing these claims, does a few things. It clarifies definitions and provides examples. It also provides new information on what documents producers should have on hand, and tells producers to be prepared to provide those documents to the agency within 24 hours of a request. And, perhaps most importantly, it sends a signal that, when the rule goes into effect, the USDA’s prepared to enforce it right away.

On one hand, this is good news for U.S. farmers, who have long reported issues competing with foreign producers. On the other, that’s not much time to gather supporting documentation before the rule kicks in. Even if you feel confident your labels comply, if you don’t have the right documents to back up your claims, you may face regulatory action. So, make sure you have your ducks (cows? chickens? eggs?) in a row.

Here's what’s going on in the background, and what producers need to know.

Regulatory Background

When it comes to consumer-facing U.S.-origin labels, a patchwork of laws and regulations apply. Most “Made in USA” (MUSA) labels must comply with the Federal Trade Commission’s (FTC) MUSA Labeling Rule, which requires covered products to be “all or virtually all” MUSA. However, beef, chicken, and eggs are regulated by the USDA, and, according to the new rule, to label these products as MUSA or “Product of the USA,” producers should be prepared to demonstrate that: (1) the product is derived from an animal born, raised, slaughtered, and processed in the USA; (2) any ingredients in the product other than spices and flavorings are of domestic origin; and (3) the product’s preparation and processing has occurred in the USA. This arguably differs from the FTC analysis, which, depending on the facts, may not permit an unqualified MUSA claim for products containing foreign-origin spices and flavorings.

Putting that slight variance aside, the new rule marks a major change to the USDA standard and a step toward harmonizing with the FTC. Previously, the FSIS permitted “Product of USA” labels on meat products processed in the USA, regardless of where the animals were born, raised, and harvested. This caused a great deal of consternation among U.S. producers, who argued “Product of USA” labels for products processed in USA but comprised of cattle born, raised, and slaughtered abroad both deceived consumers and placed U.S. farmers and ranchers at a competitive disadvantage. Indeed, when the the FTC promulgated its MUSA Labeling Rule in 2020-2021, it was deluged with hundreds of public comments urging it to declare that meat products should be subject to the same “all or virtually all” standard as products outside the USDA’s jurisdiction to alleviate these concerns.

Although the FTC lacked authority to issue the requested statement, that conversation was instrumental in spurring the USDA to review consumer understanding of “Product of USA” claims. The 2024 rule followed shortly thereafter, with the USDA explaining that the update would “prohibit misleading U.S. origin labeling in the market, and help ensure that the information that consumers receive about where their food comes from is truthful.” 

How this week’s directive changes the landscape

The USDA rule has been set to take effect on January 1, 2026 since March 2024, so producers should have had a general awareness of what was on the horizon. However, this week’s updates make several important clarifications. Most notably, effective January 1, if a producer chooses to make a voluntary “Product of USA” claim, not only will they need to have the general substantiation described in the rule on hand, they’ll have to give the USDA access to it within 24 hours of a request. 

The general substantiation the rule requires includes:

• A written description of the controls used in every step of production to ensure that each step complies with the regulatory criteria;
• A written description of the controls used to trace animals, eggs, and covered ingredients through to production to separate those that comply with the regulatory criteria from those that do not; or
• A signed and dated document describing how the product is prepared and processed to support the claim is not false or misleading.

In the directive, the USDA provided more specifics on exactly what will fit the bill. For example, for a “Product of USA” label claim on a single ingredient beef product, a producer could have records from a ranch located in Wyoming demonstrating that the animal from which the product was derived was born, then raised until slaughter, on the ranch, along with additional documentation showing that the animal was slaughtered and processed in the United States. The directive also includes examples for substantiating a “Product of USA” label on a jerky product, and substantiating a “Sliced and Packaged in Maryland” label on a sausage product.

Also of interest, the directive provides clarifications on other claims. For example, for “Processed in the USA,” “Manufactured in the United States,” or “Produced in the United States” claims, the directive explains that producers should qualify the claim with a description of the preparation and processing steps that occurred in the U.S. And, for claims about production in a specific state, the directive states that producers should be ready to show the three steps needed to substantiate a “Product of USA” claim all occurred in that state.

 What affected producers should do today

If you’re labeling – or want to label – your meat or egg product as “Product of USA,” here’s what to do before January 1:

• Confirm you have appropriate documentation for your claims. It’s good labeling hygiene in general, but particularly given the signals that enforcement actions may be forthcoming, take a minute to make sure you have appropriate, up-to-date documents proving your products meet the “Product of USA” standards, and are in a position to hand them over to the USDA if requested.

• Attend a USDA webinar. FSIS is holding two webinars next week to discuss the standard, one for industry stakeholders on December 15, and one for state government officials on December 16. The webinars are set to cover the updated guidance and offer an opportunity to ask questions.

• Call us for help. Origin labeling is complicated. In addition to all the regulations involved, which come with various penalties for noncompliance, incorrect or allegedly misleading origin claims are a perennial favorite for class action plaintiffs. We can help you confirm you’ve got it all under control.