VERMONT BST LAW SEEN SOURING SALES

PAMELA BLAMEY

WASHINGTON -- A bovine somatotropin labeling law that went into effect in Vermont Sept. 12 has the milk industry bracing for negative repercussions on consumption.

On Sept. 5, the state's Court of Appeals denied an industry motion for an injunction pending appeal against the mandatory labeling of milk products sourced from rBST-treated cows.

"We asked the court to stop the signage before we got a chance to go into court [and argue it]," said Jeffrey Nedelman, spokesman for the Grocery Manufacturers of America here. "But they denied it, so the signage is going to go up.

"Effective Sept. 12 [they had] to start labeling in stores."

Although the injunction was denied, the appeal itself is still under consideration, noted Carole Throssell, in a statement on behalf of GMA, where she is manager of state affairs.

"The Court of Appeals agrees to expedite its consideration and determination of that appeal, and we will continue our fight for repeal of this cumbersome, unfair and misleading law," she said. "It can accomplish nothing but undue alarm for consumers, implying a health threat that simply does not exist."

Dairy Coalition spokesman Dick Weiss agreed with GMA's assessment of the Vermont rule's implications.

"First, and this is speaking for the Dairy Coalition, we are concerned that consumers would interpret it as some sort of warning label, and that it could affect sales."

A "domino-effect" is another fear, he continued. "We are concerned that other states will begin to follow suit, and specifically we think there may be activity in Massachussets, Rhode Island, New Hampshire and possibly New York and Connecticut."

However, the legislation "sunsets" in January 1997, noted Jim Harrison, president of the Rutland, Vt.-based Vermont Grocers' Association.

"[They want] to see how it works," he said. "If it is a negative in terms of affecting consumption of dairy products and hurts dairy farmers, then theoretically the state won't extend it. However, if it's seen as a boost to consumers and they want it, then the legislature can just extend that date indefinitely.

"So it will become a legislative issue again, one way or another."

GMA's Throssel emphasized the safety of Food and Drug Administration-approved BST and expressed fears that the labeling will be disastrous for milk consumption.

"GMA agrees with the FDA and every independent health organization in the country that supplemental rBST is safe for all consumers. And when the government imposes a label on a consumer product, it implies that a health or safety issue is connected with that product. A Vermont-specific label would imply a conclusion by the state which has not been reached by any federal regulatory body. This implication could lead to rejection of what we know is a safe nutritious product."

Meanwhile, the implementation is off to a slow start, explained Marshall Clark, president of the two-store independent Clark's IGA, a Ludlow, Vt., affiliate of Supervalu's Keene division.

"It's the manufacturers' responsibility to supply the blue tags or stickers to put on the product, and they haven't done that yet. So it's running a little bit behind schedule," he told SN.

Fears about consumer response are not unfounded, he said. "I think it's drawing attention to the consumer about the whole issue. Some people are saying that they're not going to use any product that has rBST in it, whereas if the new law hadn't come about, they probably wouldn't know or care."

Retailers may choose from several labeling options, which the manufacturers supply.

"One option is a label stating that the milk comes from cows who have been given rBST supplements," said Weiss.

"My understanding is that it doesn't necessarily have to be written, in other words [they can] put a blue sticker on there, and then in the store signs explain that the blue sticker means it may have milk from supplemented cows. "I think Vermont did that to avoid [people] having to reprint labels."

Other options include posting signs stating what products may contain milk from BST-supplemented cows, or having sections in the store where products that may have milk from supplemented cows have a blue overlay on their shelf stickers.

The rule has definitely ruffled retailer feathers in Vermont, said Harrison.

"I think it's fair to say that retailers by and large don't feel that this should be their job in terms of putting up signs and shelf tags," he told SN.