[Federal Register: May 18, 2004 (Volume 69, Number 96)]
[Rules and Regulations]
[Page 28042-28043]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18my04-2]
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DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service
9 CFR Parts 317 and 381
[Docket No.01-018E]
Definitions and Standards of Identity or Composition: Elimination
of the Pizza With Meat or Sausage Standards
AGENCY: Food Safety and Inspection Service, USDA.
ACTION: Final rule: extension of compliance date.
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SUMMARY: The Food Safety and Inspection Service (FSIS) is providing
additional time for manufacturers of packaged pizza products to comply
with new regulations that require that the labeling of products
identified as ``pizzas'' that contain a meat or poultry component as
part of the product name, declare the percent of meat or poultry in the
product in a parenthetical statement contiguous to the ingredients
statement. The effective date for this final rule was October 22, 2003.
The extension of the compliance date for the labeling requirement
applies only to those manufacturers of packaged pizzas that have not
changed the formulation of their products since the final rule became
effective and that continue to use their current label designs without
change. FSIS is taking this action to minimize the costs to small
manufacturers of packaged pizza products to redesign and print new
product labels.
DATES: The compliance date for 9 CFR 317.8(b)(40) and 9 CFR 381.129(f)
is extended from October 22, 2003, to July 31, 2004, for manufacturers
of packaged pizzas that can and do continue to use their current
product labels without change.
FOR FURTHER INFORMATION CONTACT: Robert C. Post, Ph.D., Director,
Labeling and Consumer Protection Staff, Office of Policy and Program
Development, Food Safety and Inspection Service, U.S. Department of
Agriculture, Washington, DC 20250-3700; (202) 205-0279.
SUPPLEMENTARY INFORMATION: On July 31, 2003, FSIS published a final
rule in the Federal Register to rescind the regulatory standards of
identity for ``pizza with meat'' and ``pizza with sausage'' by removing
9 CFR 319.600 from the Federal meat inspection regulations (68 FR
44859). The effective date for the final rule was October 22, 2003. As
a result of the final rule, products identified as ``pizzas'' that
contain a meat or poultry component as part of the product name are no
longer
[[Page 28043]]
required to contain a minimum amount of meat or poultry, provided that
they contain a sufficient amount of these components to make the
product subject to USDA jurisdiction.
To allow consumers to become familiar with variations in the meat
or poultry content permitted in meat or poultry pizzas as non-
standardized foods, the final rule requires that, for three years, the
labeling of meat or poultry pizzas declare the percent of meat or
poultry in the product in a parenthetical statement contiguous to the
ingredients statement (9 CFR 317.8(b)(40) and 9 CFR 381.129(f)). This
labeling requirement is a transitional step to allow consumers to
understand the nature of the food. To minimize costs associated with
the new labeling requirement, FSIS allowed pizza manufacturers to
exhaust their remaining packaging inventories so that they would not
have to discard any unused labels.
However, according to the National Frozen Pizza Institute (NFPI),
the ability to exhaust remaining packaging inventories may not provide
enough flexibility for small pizza manufacturers. According to
information that NFPI recently shared with the Agency, in an effort to
minimize operating costs and maintain a sound cash flow, small pizza
manufacturers generally do not keep large label inventories. To free
resources, these companies keep a small inventory and order labels
frequently. Hence, NFPI has explained that, for most small pizza
makers, there is no ``stockpile'' of labels. Consequently, the
requirement to change labels at the next printing will impact these
companies within the next few months.
Moreover, although FSIS requested comments on whether the Agency
should require that the product name of non-standardized pizza products
disclose the percent of meat or poultry in the product in the preamble
to the proposed rule, the proposed text of the regulation did not
include new labeling requirements. Therefore, because the labeling
requirement in the final rule was not included in the proposed text of
the regulation, most small manufacturers of pizza products did not
budget for costs associated with ``label changes'' resulting from the
final rule. The NFPI stated that, accordingly, label costs for the
small pizza makers will be taken from company profits concentrated over
a short time period. This is especially true for private label
processors who generally cannot include the cost in existing contracts;
have low profit margins; have the smallest amount of labels on hand;
and have the largest number of individual labels affected.
The recent data submitted to FSIS by NFPI explains that, because
most small companies that produce packaged pizza products do not change
label designs on a regular basis nor do they maintain large stocks of
product labels, the costs for changing branded and private label UPC
codes will be incurred more quickly than anticipated. Thus, to comply
with the final rule, many small manufacturers of packaged pizzas that
otherwise would not have modified their current label designs because
they have not changed the formulation of their products, are required
to redesign and print new product labels. NFPI suggested that an
effective method to minimize the financial impact of the final
regulation is to permit these companies to spread costs over a longer
period of time. With a longer period to accomplish the label changes,
the companies may spread costs over a longer period of time, thus
enabling them to stretch the costs from profits over a longer period or
to modify their pricing to incorporate the costs of the label changes.
In response, in order to minimize the label redesign and printing costs
to these small businesses, FSIS has decided to provide additional time
to comply with the new labeling requirement.
FSIS is extending until July 31, 2004, the date that manufacturers
of packaged pizza products must comply with the meat or poultry
labeling requirement in 9 CFR 317.8(b)(40) and 9 CFR 381.129(f) for
those manufacturers that have not changed the formulation of their
products since the final rule became effective and that continue to use
their current product label designs without change. To ensure that
consumers are not adversely affected by the extension of the compliance
date, companies that take advantage of the extension must continue to
use labels that include a declaration of the percent of meat or poultry
in the product for three years from the date that such new labels are
first applied to their products. All manufacturers must begin to comply
with the meat or poultry content declaration requirement by the new
compliance date.
Additional Public Notification
Public awareness of all segments of rulemaking and policy
development is important. Consequently, in an effort to better ensure
that the public, and in particular minorities, women, and persons with
disabilities, are aware of this notice, FSIS will announce it on-line
through the FSIS Web page located at http://www.fsis.usda.gov. The
Regulations.gov Web site is the central online rulemaking portal of the
United States government. It is being offered as a public service to
increase participation in the Federal government's regulatory
activities. FSIS participates in Regulations.gov and will accept
comments on documents published on the site. The site allows visitors
to search by keyword or Department or Agency for rulemakings that allow
for public comment. Each entry provides a quick link to a comment form
so that visitors can type in their comments and submit them to FSIS.
The Web site is located at http://www.regulations.gov.
FSIS also will make copies of this Federal Register publication
available through the FSIS Constituent Update, which is used to provide
information regarding FSIS policies, procedures, regulations, Federal
Register notices, FSIS public meetings, recalls, and other types of
information that could affect or would be of interest to our
constituents and stakeholders. The update is communicated via Listserv,
a free e-mail subscription service consisting of industry, trade, and
farm groups, consumer interest groups, allied health professionals,
scientific professionals, and other individuals who have requested to
be included. The update also is available on the FSIS Web page. Through
Listserv and the Web page, FSIS is able to provide information to a
much broader, more diverse audience.
Done at Washington, DC, on May 13, 2004.
Barbara Masters,
Acting Administrator.
[FR Doc. 04-11215 Filed 5-17-04; 8:45 am]