Trend Watch 2013: Nutrition Labels, Food Safety, and the Farm Bill

Exporters and importers should plan for major changes in FDA regulations for nutritional labeling, health claims, food safety, and the import of olive oil in the coming year. The agency is under intense pressure by consumer advocacy groups and the media to implement the Food Safety Modernization Act (FSMA) and revise its standards of the Nutritional Labeling and Education Act (NLEA). It is likely that exporters and importers will face greater scrutiny of their products at the border, the warehouse, and the stores by FDA inspectors and consumers alike, and the trade partners are well advised to plan for rigorous record-keeping and potential recalls.

Here is an overview of five recent developments. Upon request, we will provide updates, in-depth analysis, and regulatory insights.

FDA may consider changes to NLEA standards of calories and serving sizes

In a recent letter to Food and Drug Administration chief Margaret Hamburg, the Center for Science in the Public Interest (CSPI) urged the agency to revise its serving-size regulations. The nonprofit consumer group advocates increasing the Reference Amounts Currently Consumed ("RACC"), which were established in the 1970s and may not reflect current consumer eating behavior. Moreover, CSPI wants FDA to take enforcement action against manufacturers who "understate the serving size for single-serve products so that the actual consumption of sodium, fat, or calories per serving is not revealed." Recent USDA-mandated changes to the nutrition labels on meat now show portion sizes and how many servings are in a package to help people make better caloric choices.

On the flip side, recent studies claim that some nuts, seeds, and vegetables contain up to 20% fewer calories than stated in the RACC and that labels should be changed accordingly. The Almond Board of California is petitioning the FDA already to reduce the reference amount for almonds. FDA may look at a complete overhaul of the NLEA over the next two years.

Fortified Foods get a closer scrutiny

The Food & Drug Administration is currently examining how consumers perceive the nutritional value of fortified foods. In 2004, the agency issued a set of principles for the fortification of food based on the belief that "random fortification of foods could result in over- and under-fortification of consumer diets and create nutritional imbalances in the food supply." The fortification of fresh produce, meat, poultry, fish, sugar, candies, snacks, and carbonated beverages is considered "not appropriate." Exporters should expect greater scrutiny of claims and ingredients used in fortified food products.

EU organic labels now permitted in the US and Canada

One positive breakthrough in the attempts to harmonize transatlantic standards and regulations is the agreement on organic food labels between the US and the EU. As of August 2012, EU organic symbols now suffice to declare a product organic. Previously, an organic food product had to comply with USDA standards to be labeled "organic" or carry the USDA organic seal. This agreement will reduce costs for exporters and their US trade partners. However, country-specific organic labels, such as the German Bio-Siegel, are not included in the agreement. That means, food products certified only according to German Bio-Siegel norms can still not be declared "organic" in the US.

FSMA Inspection fees and importer verification

It is not a secret that the implementation of the Food Safety Modernization Act by the FDA has slowed significantly over the last months. This is primarily due