EUs common food name policy will cost U.S. dairy billions

The U.S. dairy industry — and the U.S. economy — could be hit with anywhere from $9.5 billion to $20-billion in revenue losses if the European Union is successful in expanding restrictions on the use of generic cheese terms like parmesan, asiago, feta and others, according to a new study conducted by Informa Agribusiness Consulting, commissioned by the Consortium for Common Food Names (CCFN) and the U.S. Dairy Export Council (USDEC). The study, which provides timely information in light of U.S.-EU trade negotiations, examined the potential impact the EU’s aggressive geographical indications (GI) agenda would have if imposed on a broad variety of U.S. cheeses and markets. Seizing the common names that U.S. marketers have used for generations would confuse and alienate both domestic and international consumers, leading to a dramatic drop in demand for U.S. cheese. If the EU’s GI initiatives were to be enforced on U.S. cheeses, the study — conducted by Informa Agribusiness Consulting — predicts that the dairy industry could see a dramatic drop in demand for U.S. cheeses, with prices falling 14% and resulting revenue losses of between $9.5 billion and $20.2 billion, depending on consumers’ willingness to pay for recognizable cheese names.