“SBA officials expressed strong concerns about the cost and operational burdens this law would impose on FMI’s smaller members,” said FMI Senior Vice President John Motley, who attended the meeting with SBA Office of Advocacy officials. “In fact,” said Motley, “they are concerned about the impact on small companies throughout the food industry, including farmers, ranchers and manufacturers.”
While the Office of Advocacy lacks the authority to change laws or regulations, it scrutinizes the implementation of laws and can issue recommendations to mitigate a law’s impact on small companies, up to exempting them from having to comply.
USDA’s Agricultural Marketing Service estimated the COL record-keeping requirements would cost the industry nearly $2 billion to implement in the first year after mandated labeling takes effect on September 30, 2004.
“The full cost impact of COL on the industry — and ultimately on consumers — will be measured in many billions of dollars,” said Motley. “There is no question the law will hit smaller companies the hardest and, in some cases, drive them out of business.
“We welcome any and all help that SBA can provide, illuminating the detrimental impact on small companies and helping them find cost-effective means to comply with the law.”
Food Marketing Institute proudly advocates on behalf of the food retail industry. FMI’s U.S. members operate nearly 40,000 retail food stores and 25,000 pharmacies, representing a combined annual sales volume of almost $770 billion. Through programs in public affairs, food safety, research, education and industry relations, FMI offers resources and provides valuable benefits to more than 1,225 food retail and wholesale member companies in the United States and around the world. FMI membership covers the spectrum of diverse venues where food is sold, including single owner grocery stores, large multi-store supermarket chains and mixed retail stores. For more information, visit www.fmi.org and for information regarding the FMI foundation, visit www.fmifoundation.org.
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