95-27305. Poultry Products Produced by Mechanical Separation and Products In Which Such Poultry Products Are Used  

  • [Federal Register Volume 60, Number 213 (Friday, November 3, 1995)]
    [Rules and Regulations]
    [Pages 55962-55983]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-27305]
    
    
    
    
    [[Page 55961]]
    
    _______________________________________________________________________
    
    Part VI
    
    
    
    
    
    Department of Agriculture
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Food Safety and Inspection Service
    
    
    
    _______________________________________________________________________
    
    
    
    9 CFR Part 318, et al.
    
    
    
    Poultry Products Produced by Mechanical Separation and Products In 
    Which Such Poultry Products Are Used; Final Rule
    
    Federal Register / Vol. 60, No. 213 / Friday, November 3, 1995 / 
    Rules and Regulations
    
    [[Page 55962]]
    
    
    DEPARTMENT OF AGRICULTURE
    
    Food Safety and Inspection Service
    
    9 CFR Parts 318, 319, and 381
    
    [Docket No. 93-008F]
    RIN 0583-AB68
    
    
    Poultry Products Produced by Mechanical Separation and Products 
    In Which Such Poultry Products Are Used
    
    AGENCY: Food Safety and Inspection Service, USDA.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Food Safety and Inspection Service (FSIS) is amending the 
    Federal poultry products inspection regulations to prescribe: a 
    definition and standard of identity and composition for the poultry 
    product that results from the mechanical separation and removal of most 
    of the bone from skeletal muscle and other tissues of poultry carcasses 
    and parts of carcasses (``Mechanically Separated (Kind of Poultry)''--
    hereafter referred to generically as ``Mechanically Separated Poultry'' 
    (``MSP'')), including requirements for bone solids content (measured as 
    calcium content) and bone particle size; certain limitations for the 
    use of MSP; and labeling requirements for MSP, and for poultry products 
    and meat food products containing MSP as an ingredient. This action 
    establishes the requirement that products containing MSP as an 
    ingredient disclose that fact by identifying it in the ingredients 
    declaration as, in the case of MSP derived from chicken carcasses, 
    ``mechanically separated chicken,'' rather than ``chicken.'' This 
    action will help ensure that meat and poultry products distributed to 
    consumers are not labeled in a false or misleading manner and are not 
    misbranded.
    
    EFFECTIVE DATE: November 4, 1996.
    
    FOR FURTHER INFORMATION CONTACT: John W. McCutcheon, Deputy 
    Administrator, Regulatory Programs, Food Safety and Inspection Service, 
    U.S. Department of Agriculture, Washington, DC 20250, Area Code (202) 
    720-2709.
    
    SUPPLEMENTARY INFORMATION:
    
    Purpose of the Final Rule
    
        This final rule amends the regulatory requirements for the poultry 
    product with a paste-like form and batter-like consistency that results 
    from the mechanical separation and removal of most of the bone from 
    attached skeletal muscle and other edible tissues of poultry carcasses 
    and parts of carcasses, and for the finished poultry products and meat 
    food products in which this product is used as an ingredient. FSIS 
    first conducted a rulemaking regarding this product in 1969. Over the 
    years, the amount of such product being manufactured, and the number 
    and range of poultry products and meat food products in which it is 
    used as an ingredient, has increased significantly.
        FSIS has gained a great deal of knowledge from its rulemakings 
    regarding the livestock product resulting from a similar mechanical 
    separation and removal process which is called ``mechanically separated 
    beef'' or ``mechanically separated pork'' (or any other species derived 
    from livestock, such as beef, and lamb), which will be referred to 
    generically in this document as mechanically separated meat (MSM). MSM 
    is a livestock product with a paste-like form and batter-like 
    consistency that results from the mechanical separation and removal of 
    most of the bone from attached skeletal muscle of livestock carcasses 
    and parts of carcasses that meets the provisions of 9 CFR 319.5. MSM is 
    subject to regulatory requirements which include a standard of identity 
    and composition that defines this product, limits for bone solids 
    content and bone particle size, and a name that differentiates it from 
    meat. It is also required to be separately identified in the 
    ingredients statement of products in which it is used, and is subject 
    to certain restrictions in its use.
        More recently, in a lawsuit, Bob Evans Farms, Inc. et al., v. Mike 
    Espy, Secretary of Agriculture (D.D.C. Civil Action No. 93-0104), 
    several red meat sausage manufacturers alleged that, without a 
    regulatory definition and standard for poultry products produced by 
    mechanical separation, a disparate situation exists between labeling 
    MSP, and MSM for which a regulatory definition and standard exist. The 
    red meat sausage manufacturers have alleged that the disparate labeling 
    situation poses an unfair advantage for the manufacturers of 
    mechanically separated poultry products.
        In view of these developments, and taking into account the 
    information and experience acquired since 1969 and current regulatory 
    policies, the Agency has reviewed and reevaluated the existing 
    regulations for MSP, particularly in regard to labeling issues about 
    this product. As a result of its review and reevaluation, the Agency 
    has concluded that regulatory action to more clearly identify MSP on 
    product labels, is necessary to prevent the preparation and 
    distribution in commerce of poultry products and meat food products 
    which are misbranded or not properly marked, labeled, or packaged. See 
    sections 4(h) and 8 of the Poultry Products Inspection Act (PPIA) (21 
    U.S.C. 451 et seq.) and sections 1(n) and 7 of the Federal Meat 
    Inspection Act (FMIA) (21 U.S.C. 601 et seq.); 21 U.S.C. 453(h), 457 
    and 601(n), 607. The primary reasons for this action are as follows:
        (1) The method of deriving poultry products by the mechanical 
    separation process results in a product whose physical form and texture 
    differ materially from those of other boneless poultry products 
    produced by hand deboning techniques, i.e., hand-held knives.
        The process of manufacturing MSP begins with starting materials 
    that include backs, and whole and half carcasses and parts of carcasses 
    from which most of the muscle and other tissues have been removed by 
    hand, leaving bits and pieces of tissue adhering to skeletal frames and 
    carcass ``shells.'' These starting materials may be raw or cooked, may 
    contain varying amounts of muscle and/or skin (with or without attached 
    fat), and may contain kidneys, except when product is made from mature 
    chickens or turkeys. (Kidneys of mature chickens or turkeys may not be 
    used as human food according to 9 CFR 381.65(d)). The nature of these 
    starting materials is such that the muscle and other tissue that 
    remains on the bones cannot be efficiently or effectively removed using 
    hand-deboning techniques. This is because (1) the bony structure of the 
    materials limits the accessibility of knives and obstructs precise hand 
    removal of edible tissue, (2) hand-removal of the tissues is too time 
    consuming to make it practical, and (3) the physical movements 
    necessary to remove the bits and pieces of tissues adhering to bones 
    have been associated with cumulative trauma disorders (also referred to 
    as repetitive motion disorders), e.g., Carpal Tunnel Syndrome. 
    Mechanical separation of the bits and pieces of muscle and other 
    tissues from the bones to which they are adhering is, however, easily 
    accomplished using mechanical deboning machines.
        Typically, the starting materials have undergone an initial bone 
    breaking process to enable the machines to operate efficiently. The 
    starting materials are fed into a mechanical deboning (i.e., 
    separation) machine which operates on the differing resistance of bone 
    and tissue to passage through small holes (i.e., apertures), whether it 
    employs sieves, screens, or other devices. The starting materials are 
    pushed under high pressure through the part of the equipment with 
    apertures. Most of the bone is separated and 
    
    [[Page 55963]]
    removed. However, the apertures allow a small amount of powdered bone 
    to pass through with the edible tissues, which, under the high pressure 
    applied by the machine, become a homogeneous soft tissue mass. The 
    minute amount of powdered bone (particles much smaller than the size of 
    pepper and limited to no more than one percent) is also dispersed 
    throughout the soft tissue mass. The remaining bony residue that has 
    been separated from the paste-like muscle and other tissues exits from 
    a separate place on the equipment. Thus, such machines mechanically 
    separate and remove most of the bone from the starting materials, 
    resulting in a product with a paste-like form which is comparable in 
    consistency to a cake batter. The process of manufacturing mechanically 
    separated poultry results in a product whose form and texture differ 
    materially from those of other boneless poultry products produced by 
    traditional hand-deboning. Despite these differences, current FSIS 
    regulations do not distinguish between poultry products produced by 
    mechanical separation and poultry products produced by traditional 
    deboning techniques, i.e., hand-deboning, in terms of product identity 
    and composition or use. Both are declared on product labels as 
    ``chicken,'' ``turkey,'' or the names of other kinds of poultry.
        (2) Mechanically separated poultry is produced by essentially the 
    same technology and has characteristics (i.e., physical form and 
    textural consistency) similar to those of the livestock product, MSM, 
    which is required to be declared on labels as mechanically separated 
    beef (or pork or other species of livestock).
        (3) The mechanical process from which mechanically separated 
    poultry is derived makes its form and consistency materially different 
    from that of poultry derived by traditional hand-deboning methods, yet 
    it is not currently identified in the ingredients statement of a 
    product in which it is used by a name that distinguishes it from 
    traditionally deboned poultry. Mechanically separated poultry should be 
    declared in the ingredients statements of the products in which it is 
    used by the distinctive term ``mechanically separated (kind of 
    poultry),'' e.g., ``mechanically separated turkey,'' ``mechanically 
    separated chicken.''
        The product resulting from mechanical separation has certain 
    textural attributes that are different than hand-deboned poultry, even 
    if the hand-deboned poultry is further processed through a grinder to 
    result in ground poultry. The product that directly results from the 
    mechanical process is paste-like in form and similar to a cake batter 
    in consistency, and is not the same as chicken or turkey removed from 
    carcasses or parts of carcasses by hand. Chicken or turkey that results 
    from hand-deboning is easily recognized as muscle, skin, and other 
    edible tissues and parts because it retains its natural physical form 
    and consistency; it has not been subjected to the rigors of crushing 
    bones and separating bone from muscle and other tissue under high 
    pressure in separation machinery. The rigors of the mechanical 
    separation process alter the structure of the muscle fibers, skin, fat, 
    and other tissues that adhere to the skeletal frames, shells, and other 
    starting materials so that they become blended and amorphous, and are 
    no longer recognizable as ``chicken'' and ``turkey.'' These machines 
    are not available to consumers and, therefore, consumers are not likely 
    to have the expectation of the resulting batter-like material as 
    ``chicken'' or ``turkey.'' Thus, a separate identity is necessary for 
    the product that results.
        The term ``mechanically separated'' is recognized internationally 
    by the Codex Alimentarius Commission1 of the United Nations and by 
    individual countries that trade with the United States, has been upheld 
    in Court decisions as being appropriate to distinguish the livestock 
    product derived by mechanical separation machinery2, and 
    appropriately distinguishes the product from hand-deboned poultry as 
    one that is derived by a strictly mechanical means. As such, similar 
    terminology should be applied to poultry products resulting from the 
    process of mechanical separation and recovery of crushed bone from 
    muscle and other edible tissues that results in a product with a paste-
    like form and cake batter-like consistency.
    
        \1\ Food and Agriculture Organization of the United Nations, 
    World Health Organization, Codex Alimentarius Commission, Joint FAO/
    WHO Food Standards Programme, Codex Alimentarius Commission, Volume 
    10, Code of Practice for Mechanically Separated Meat and Poultry, 
    pp. 71-72 (1994) is available for review in the FSIS Docket Clerk's 
    office.
        \2\A copy of the Courts' decisions in Community Nutrition 
    Institute (CNI) et al. v. Block, No. 82-2009 (D.D.C. Dec. 1, 1982), 
    aff'd 749 F.2nd 50 (D.C. Cir 1984) is available at the FSIS Docket 
    Clerk's office for review.
    ---------------------------------------------------------------------------
    
        Therefore, FSIS is amending the poultry products inspection 
    regulations (9 CFR Part 381) to revise and supplement the requirements 
    for the manufacture, characteristics, and labeling of poultry products 
    produced by mechanical separation and the labeling of products in which 
    they are used as ingredients that result in a product with a paste-like 
    form and cake batter-like consistency. Under this final rule, 
    mechanically separated product derived from chicken or turkey would be 
    labeled as ``mechanically separated chicken,'' or ``mechanically 
    separated turkey,'' as the case may be, and would be separately 
    identified by this name in the ingredients statement of products in 
    which it is used.
    
    The Purpose of An Extended Effective Date
    
        Various commenters suggested that industry should be given a 
    sufficient amount of time to use most of their already printed labels, 
    before the final rule's new labeling requirements must be carried out. 
    FSIS agrees that such a time period should be granted in regard to all 
    of the new requirements of the final rule. Therefore, an effective date 
    of one year from the date of publication has been provided for in this 
    final rule. This time period is intended to allow ample time for an 
    orderly transition to the new requirements, including the labeling 
    requirements, and to assure that manufacturers of poultry products 
    produced by mechanical separation, and of poultry and meat food 
    products in which the product is used as an ingredient, have ample time 
    to exhaust current label stock. In this regard, manufacturers will not 
    be required to dispose of label inventories that were printed or 
    ordered for printing prior to publication of the rule if they have made 
    a good faith effort to exhaust current stocks before the effective 
    date. Requests for use of current labels beyond the effective date will 
    be considered on a case-by-case basis.
    
    Background
    
    I. Introduction
    
        The technology to mechanically separate and remove most of the bone 
    from attached skeletal muscle and other tissue of poultry carcasses and 
    parts of carcasses began in the late 1950's or early 1960's. The 
    technology is grounded in the desire of poultry manufacturers to 
    salvage edible, wholesome muscle and other tissue from carcasses and 
    parts of carcasses (such as skeletal frames and carcass shells) that 
    cannot be efficiently or effectively removed by hand in order to 
    provide a source of low-cost protein that is safe and essentially 
    nutritionally the same as the muscle and other tissue removed from 
    poultry carcasses and parts of carcasses by hand deboning methods. In 
    terms of functionality, mechanically separated poultry has the same 
    functions as hand-deboned chicken or turkey with the added 
    
    [[Page 55964]]
    benefit of being able to easily form emulsions and bind to other 
    proteins readily. This is because the muscle and other edible tissues 
    no longer possess their original tissue structure and the cake-batter 
    consistency eases blending with other ingredients.
        The Agency's initial reaction was to consider the resulting product 
    adulterated because of the amount of powdered bone present and the 
    physical size of the bone particles. By the mid-1960's, the industry 
    had modified and improved the equipment used to produce poultry product 
    by mechanical separation such that the product contained 1 percent or 
    less bone solids with an extremely small bone particle size. This 
    prompted the Agency to reevaluate its position. Widespread commercial 
    production of products containing mechanically separated poultry began 
    in the early 1970's. By 1975, poultry product produced by mechanical 
    separation was being used as an ingredient in poultry and meat food 
    products such as franks, bologna, salami, and poultry rolls.
        Today, the technology for producing poultry products by mechanical 
    deboning is accepted as a valuable and practical means for salvaging 
    edible tissue from poultry parts and carcasses from which most of the 
    muscle and other tissues have been removed by hand. In the current 
    market, poultry products made with mechanically deboned poultry include 
    cooked poultry sausages (such as chicken frankfurters, turkey salami, 
    and turkey bologna), poultry patties and nuggets (such as chicken 
    patties and nuggets), formed and whole poultry roasts (e.g., oven-
    cooked turkey breast), and poultry baby foods. The level at which it is 
    used has depended in part on technological capabilities. For example, 
    the level of use has reached 100 percent of the poultry product portion 
    of a number of cooked poultry sausage products (such as chicken franks) 
    and greater than 15 percent of the poultry product portion of whole 
    muscle products, e.g., cooked turkey breast, where it serves the 
    purpose of binding whole muscle pieces together to make the product. 
    Poultry product produced by mechanical means is also used at up to 49 
    percent of the formulations of certain meat food products, e.g., beef 
    and turkey chili, provided that it is identified in the product name as 
    ``turkey'' or ``chicken,'' and used in meat food products including 
    cooked sausages, such as frankfurters and bologna, at a level of up to 
    15 percent of the total ingredients, excluding water (9 CFR 319.180) 
    without being identified in the product name.
        Over the years, the poultry and meat food industries have also 
    referred to poultry products produced by mechanical means as 
    ``comminuted (i.e., ground) poultry.'' Terminology such as ``finely 
    comminuted,'' ``finely ground,'' ``mechanically deboned,'' and 
    ``mechanically separated'' have also been used to describe the product 
    according to 9 CFR 381.117(d). The terms ``finely ground,'' ``ground,'' 
    ``finely comminuted,'' and ``comminuted'' have been applied to poultry 
    produced by mechanical deboning as well as to poultry products produced 
    using hand-deboning methods as a means of being in accord with 9 CFR 
    381.117(d).
        Poultry products produced by mechanical means are currently subject 
    to 9 CFR 381.117(d) which relates generically to boneless poultry 
    products. This regulation requires boneless poultry products to be 
    labeled in a manner that accurately describes their actual form and 
    composition. The product name must indicate the form of the product, 
    e.g., emulsified or finely chopped, and the kind name of the poultry 
    from which it is derived, e.g., chicken, turkey, etc.. If the product 
    does not consist of natural proportions of skin and fat, as they occur 
    in the whole poultry carcass, the product name must also include 
    terminology that describes the actual composition. If the product is 
    cooked, it must be so labeled. Section 381.117(d) also limits the bone 
    solids content of boneless poultry products to 1 percent.
        Existing regulations do not distinguish between boneless poultry 
    products produced by mechanical separation and poultry products 
    produced by traditional methods, e.g., hand-deboning. As a matter of 
    practice, poultry product produced by mechanical separation is 
    currently declared in the ingredients statement of a product in which 
    it is used, along with any other boneless poultry product used, as 
    ``chicken'' or ``turkey'' where skin and fat are included but not in 
    excess of their natural proportions, or as ``chicken meat'' or ``turkey 
    meat'' when skin with attached fat is not included.
    
    II. Report on Health and Safety of Mechanically Deboned Poultry
    
        In 1976, FSIS initiated an analytical program to obtain data on a 
    number of nutrients and substances of potential health concern in 
    poultry products produced by mechanical separation. Data were also 
    gathered from scientific literature, industry, other government 
    agencies, and university scientists. Details of the analytical program 
    and a resulting evaluation were published in a June 1979 report 
    entitled ``Health and Safety Aspects of the Use of Mechanically Deboned 
    Poultry'' (hereafter referred to as the 1979 Report). An errata 
    supplement correcting certain items in the report was prepared and 
    published on August 14, 1979 (44 FR 47576). (The 1979 Report and the 
    errata supplement are available for public inspection in the FSIS 
    Docket Clerk's office.) On June 29, 1979, the Agency announced the 
    availability of this report and encouraged interested members of the 
    public to comment on its content.
        The 1979 Report evaluated the effects on health and safety of use 
    of mechanically separated poultry and, in particular, examined the 
    heavy metal, trace element, bone particle, chlorinated hydrocarbon, 
    cholesterol, fat, essential amino acid, total protein, and purine 
    contents of MSP, as well its microbiology. The 1979 Report recommended 
    that (1) potential health risks associated with cadmium in kidneys from 
    mature chickens would be avoided by not allowing kidneys from mature 
    chickens in MSP, (2) potential risks to children associated with 
    fluoride in MSP from fowl could be avoided by not allowing MSP from 
    fowl in baby foods, (3) MSP should be labeled to show the presence of 
    cholesterol and calcium for the benefit of people who needed to 
    restrict their intake of these substances, and (4) mandatory handling 
    and storage of starting materials used for making MSP should be 
    considered.
        In the same June 29, 1979, announcement on the availability of the 
    1979 Report, FSIS also notified the public that it was particularly 
    interested in receiving comments regarding the proper labeling of 
    products containing poultry product produced by mechanical separation 
    and what means, if any, should be taken to implement the labeling 
    recommendations with regard to calcium and cholesterol in the report 
    (44 FR 37965).
        FSIS received 221 comments, most of which were general reactions to 
    the labeling issues raised in the notice, and health, safety, or 
    economic concerns. The majority of the commenters expressed a general 
    opinion on the adequacy of regulations concerning mechanically 
    separated poultry products and were supportive of the rules at that 
    time. Some commenters stated that the regulations have effectively 
    controlled the use of mechanically separated poultry products over many 
    years with a wide base of consumer acceptance, that such product is not 
    significantly different from product produced by hand-
    
    [[Page 55965]]
    deboning, that these regulations provide truthful labeling, and/or that 
    the report and scientific literature support the adequacy of current 
    regulations. Other commenters indicated that mechanically separated 
    poultry should be regulated the same as mechanically separated meat 
    (then named mechanically processed (species) product).
    
    III. GAO Report on Mechanically Separated Products
    
        In 1983, the General Accounting Office (GAO) issued a report 
    recommending that the Secretary of Agriculture direct the Administrator 
    of FSIS to establish specific standards on poultry products produced by 
    mechanical separation, and labeling requirements on products made with 
    such poultry products, as had been done for MSM and products made with 
    MSM.
    
    IV. Improvements in Machinery for Poultry Products Produced by 
    Mechanical Separation
    
        The Agency has monitored the advances in the technology for 
    mechanically separating poultry over the last decade. There have been 
    improvements in the efficiency of the mechanical separation and removal 
    of most of the bone from attached skeletal muscle and tissue of poultry 
    carcasses and parts of poultry carcasses. Today, industry figures 
    estimate that roughly 1 billion pounds of raw poultry materials are 
    used to manufacture 700 million pounds of mechanically separated 
    poultry, which is used, in turn, to formulate approximately 400 million 
    pounds of poultry sausages (including franks, bologna, and salami), and 
    300 million pounds of poultry nuggets and poultry patties.3 There 
    have been major advances in mechanical separation machinery in terms of 
    the effectiveness of removing the bone which is incorporated by the 
    process of separation into the skeletal muscle and other tissues of 
    poultry carcasses and parts of carcasses. This has been accomplished 
    through enhancements and modifications of the bone-removal devices that 
    are part of the mechanical deboning machines. There have been continued 
    refinements of certain operational parameters of the machinery, e.g., 
    the ability for operators to adjust the pressure needed to force 
    crushed poultry bones with adhering muscle and other tissues through 
    screens to separate muscle and other tissues from bone, and the size of 
    the apertures in the screens and sieves through which the crushed 
    bones, muscle, and other tissues are pushed under high pressure. These 
    improvements have resulted in the ability to easily achieve bone 
    content limits or decrease the bone solids that are a result of the 
    mechanical separation process to less than the one percent reflected in 
    the current poultry products regulations (9 CFR 381.117(d)).
    
        \3\Information provided by industry is available for public 
    inspection at the FSIS Docket Clerk's Office.
    ---------------------------------------------------------------------------
    
        In 1969, the Agency amended the regulations for poultry and poultry 
    products inspection to, among other things, provide labeling 
    requirements for boneless poultry products, as well as a prescribed 
    bone solids content of not more than 1 percent (34 FR 13991). This 
    limit was based on an evaluation conducted by FSIS of the operating 
    results in a series of poultry establishments that used mechanical 
    deboning equipment. Analyses were made of 485 samples of raw, 
    mechanically deboned product from nine commercial operations that used 
    the three types of machines most often used in the process. The 
    analyses showed that the equipment, at that time, could be operated 
    under commercial conditions to produce boneless poultry that contained 
    no more than 1 percent bone solids, on a raw weight basis, and FSIS 
    concluded that it was demonstrated that it was practical to limit the 
    bone content in deboned poultry to 1 percent. Moreover, it was deemed 
    that the one percent maximum bone solids content represents good 
    manufacturing practices and reflects mechanical separation processes 
    that are in control.
        In light of the improvements that have occurred with regard to the 
    machinery used to mechanically separate and remove most of the bone 
    from the muscle and other tissues of poultry carcasses and parts of 
    carcasses, FSIS recently conducted a study of the bone solids content 
    of MSP.4 The percentage of bone solids content (determined by 
    calcium analysis) in boneless poultry products produced by mechanical 
    separation processes was collected from approximately 50 establishments 
    during August 1993, and represented a sampling of over 2000 products. 
    The data indicate that the mean bone solids content of the samples of 
    these products was approximately 0.6 percent; generally, half of the 
    samples were above 0.6 percent (but below 1 percent) and half were 
    below 0.6 percent.
    
        \4\Data available for public inspection at the FSIS Docket 
    Clerk's Office.
    ---------------------------------------------------------------------------
    
    V. RTI Study
    
        In response to complaints from industry, some of them longstanding, 
    that the Agency is ``not regulating meat and poultry equitably,'' FSIS 
    contracted out to the Research Triangle Institute (RTI) a comparison of 
    the meat and poultry inspection regulations. RTI found many differences 
    in the two sets of regulations and narrowed down to 12 the areas of the 
    regulations where significant differences exist.5 FSIS has studied 
    these areas to determine whether, in the actual conduct of inspection, 
    they result in an inequitable application of the inspection laws, and, 
    if so, what might be done to mitigate the inequities.
    
        \5\A copy of the RTI study is available for public inspection in 
    the FSIS Docket Clerk's office.
    ---------------------------------------------------------------------------
    
        Among the areas identified in the RTI study is mechanically 
    separated product. It notes that regulations exist on the use of MSM, 
    but not on the use of mechanically separated poultry. The RTI study 
    concluded that, in general, ``the regulations covering meat and poultry 
    have been designed with the same intent--to protect `the health and 
    welfare of consumers by assuring that meat and meat food products [or 
    poultry products] are wholesome, not adulterated, and properly marked, 
    labeled, and packaged' (21 U.S.C. 602 and 451). Although the intent of 
    the regulations remains the same, the actual requirements are quite 
    different.'' The study further concludes that the bases for no 
    comparable regulation for mechanically separated poultry are 
    ``unfavorable consumer perceptions and court decisions resulting in 
    label and use restrictions for MSM; poultry has no definitional 
    requirements (e.g., it can be defined as `chicken' or `turkey').''
        Mechanically separated meat (i.e., beef or pork) product became the 
    subject of consumer criticism in the mid-l970's after USDA proposed to 
    allow its use as ingredients in meat products and to allow it to be 
    labeled as meat (i.e., ``beef'' or ``pork''). USDA also issued an 
    interim rule that included standards for the use of mechanically 
    separated red meat product. A lawsuit soon followed in which the Court 
    found that this product is not ``meat'' as traditionally defined in the 
    Federal Meat Inspection Act regulations. The Court further found that 
    USDA had not considered adequately the health and safety effects of the 
    mechanically separated red meat product.
        To respond to questions on health and safety raised by the Court, a 
    panel of government scientists was convened to examine the questions. 
    The panel found that scientific studies established no unique health 
    risks associated with mechanically separated red meat product, but that 
    the product is 
    
    [[Page 55966]]
    sufficiently different from muscle tissue meat in composition to 
    require separate labeling. The panel recommended, among other things, 
    that usage limitations be placed on this product.6
    
        \6\The panel's conclusions and recommendations were published in 
    reports titled ``Health and Safety Aspects of the Use of 
    Mechanically Deboned Meat, Volume I--Final Report and 
    Recommendations, Select Panel'' and ``Health and Safety Aspects of 
    the Use of Mechanically Deboned Meat, Volume II--Background 
    Materials and Details of Data.'' These reports are available for 
    public review in the FSIS Docket Clerk's office.
    ---------------------------------------------------------------------------
    
        The panel reports, among other things, led FSIS to issue final 
    regulations on June 20, 1978, that established preparation, 
    composition, usage, and labeling requirements for mechanically 
    separated red meat product, which was named mechanically processed 
    species product (MP(S)P) and required that it be produced only under a 
    quality control program approved by the Agency (43 FR 26416). This rule 
    established a definition and standard of identity for this product that 
    necessitated it being listed separately from meat in the ingredients 
    statement of a product in which it was used. In 1981, the Agency 
    proposed that this product be distinctly identified as ``mechanically 
    separated (species) (MS(S))'' (where ``species'' refers to beef, pork, 
    or other species of livestock) based on data, information, and 
    arguments accumulated by and submitted to FSIS since the regulations 
    for the product were originally promulgated on June 20, 1978 (46 FR 
    39274). FSIS proposed to amend the definition and standard for MP(S)P 
    by deleting the term ``product'' from the product name and by 
    considering terminology such as ``mechanically separated,'' 
    ``mechanically deboned,'' and ``mechanically recovered'' as an 
    alternative to ``mechanically processed'' to continue distinguishing 
    the product from ``meat.'' Comments on the proposal indicated that the 
    term ``mechanically separated'' was more descriptive of the product 
    than the other terms listed in the proposal, that it was favored 
    because of its use in other countries and adoption by the Codex 
    Alimentarius Committee on Processed Meat and Poultry Products (1978), 
    and that it did not have negative connotations associated with the 
    other terms. Some commenters on the proposal stated that the term was 
    truthful and understandable. Additional rulemaking on June 29, 1982 (47 
    FR 28214), reaffirmed the Agency's position that the product is not 
    ``meat'' as traditionally defined, and that ``mechanically separated 
    (species) (MS(S))'' is the name that will provide a more meaningful and 
    concise description of the product's characteristics than 
    ``mechanically processed (species) product.''
        During this same period, mechanically separated poultry underwent 
    product development separately from mechanically separated red meat 
    product without similar FSIS regulations. Early distinctions in 
    regulatory treatment were largely due to historical differences in how 
    the two industries used these products and the way in which they came 
    to public attention. One significant difference is that mechanically 
    separated red meat product was being considered for use in products 
    that had previously contained muscle meat. The use of mechanically 
    separated poultry in poultry hot-dogs created less controversy because 
    poultry hot-dogs, bologna, and similar products did not exist before 
    they were made with mechanically separated poultry. Thus, consumers had 
    no prior expectations about the formulation.
        Differences in regulatory treatment of MSM and mechanically 
    separated poultry have continued since that time. The meat industry 
    claims that the effect of those differences has been a reluctance on 
    the part of processors to use MSM, while MSP use has expanded. In 
    response to the early rulemakings on MSM, the meat industry claimed 
    that consumers would not buy products if ``mechanically separated beef 
    (or pork, or other livestock species)'' is listed on the label. 
    Similarly, in responding to the March 1994 advance notice of proposed 
    rulemaking (ANPR) on MSP (discussed later in this document), the 
    poultry industry claimed that, if they had to label MSP as a poultry 
    ingredient, consumers would be misled into thinking that they are 
    purchasing products inferior to what they have historically purchased 
    or that the product has changed.
        The Agency's regulation on the use of MSM and the absence of 
    regulation on the use of mechanically separated poultry have raised two 
    major policy issues. The first is whether current regulations are 
    adequately protecting consumers. The second is whether different 
    regulatory treatment for these similar products is justified. FSIS is 
    not promulgating this regulation merely because of the current 
    differences in the regulatory treatment of mechanically separated 
    poultry and MSM, but rather because one of the basic statutory missions 
    of the Federal Meat Inspection Act, under which MSM, such as 
    ``mechanically separated beef (or pork),'' is regulated, and of the 
    Poultry Products Inspection Act (PPIA), under which MSP is regulated, 
    is to assure that products bear labeling that is truthful and not 
    misleading. Here, for MSP, as FSIS did for MSM, FSIS has determined 
    that a standard of identity and composition is needed for this product, 
    along with an ingredient labeling requirement, and other requirements 
    in order to carry out one of the statutory missions of the PPIA, as has 
    been done in regard to the FMIA for MSM, by assuring that consumers are 
    accurately informed about the ingredients of products they purchase, 
    which in this case is an ingredient whose form and consistency 
    materially differ from those of other boneless poultry products 
    produced by hand-deboning.
    
    VI. Advance Notices of Proposed Rulemaking
    
        On June 15, 1993, FSIS published an advance notice of proposed 
    rulemaking (ANPR) (58 FR 33040) soliciting comments, information, 
    scientific data, and recommendations regarding the need for labeling of 
    poultry product produced by mechanical separation and products in which 
    such poultry product is used. FSIS received 2744 comments in response 
    to the ANPR, most of which were general reactions to labeling issues. 
    The majority of commenters responded to whether there was a need to 
    identify mechanically separated poultry in the ingredients statement on 
    the labels of meat and poultry products in which it is used as an 
    ingredient. Roughly half the commenters supported identifying 
    mechanically separated poultry in the ingredients statement because, 
    the commenters stated that, among other things, consumers have ``a 
    right to know'' it is an ingredient. The majority of the other 
    commenters did not support identifying mechanically separated poultry 
    in the ingredients statement, citing, in part, their belief that 
    current policies are satisfactory and that labeling MSP would mislead 
    consumers into thinking that they are purchasing products that are 
    inferior or different than the product they have historically 
    purchased. FSIS concluded that there is a ``truth-in-labeling'' issue 
    that is founded in the mandate under which the Agency operates, viz., 
    protecting consumers from misbranded poultry and meat products.
        Subsequently, on March 3, 1994, FSIS published another ANPR (59 FR 
    10230), which solicited comments and information from the meat and 
    poultry industries and industry-related organizations, the scientific 
    community, academia, consumers and consumer groups, and other 
    interested parties. FSIS sought comments on its tentative positions 
    regarding defining and standardizing, or establishing other 
    
    [[Page 55967]]
    requirements for poultry products produced by mechanical separation, 
    including possible provisions for the composition, characteristics, and 
    use of such products, and requirements for manufacturing and labeling 
    such products. In the March 1994 ANPR, FSIS considered, among other 
    things, that certain poultry products produced by mechanical 
    separation, i.e., those with greater than 0.6 percent bone solids 
    content, but no more than 1 percent bone solids content, be separately 
    identified on the labels of products in which they are used as 
    ingredients by a distinct name. However, because of the improvements 
    that were previously discussed in separating and removing the bone from 
    skeletal muscle and other edible tissues of poultry carcasses and parts 
    of carcasses, FSIS considered that some poultry products derived from 
    mechanical separation machinery, i.e., those with 0.6 percent or less 
    bone solids, be identified on the label of products in which they are 
    used as poultry or poultry meat, e.g., ``chicken'' and ``turkey meat.''
        FSIS received 106 comments in response to the March 1994 ANPR. The 
    majority of the comments did not support the ANPR. The commenters 
    strongly disagreed with the tentative position that only product with 
    0.6 percent or less bone solids content could be labeled ``(Kind)'' or 
    ``(Kind) meat,'' without the reference to ``mechanically separated.'' 
    The commenters also disagreed with the need for handling requirements, 
    protein quality requirements, and quality control for boneless poultry 
    products produced by mechanical separation. Further, commenters 
    disagreed with establishing a minimum protein content and a maximum fat 
    content requirement for poultry product produced by mechanical 
    separation with greater than 0.6 percent bone solids content. They also 
    disagreed with restricting the bone particle size to a maximum of less 
    than 1.5 millimeter (mm) in the greatest dimension and limiting the use 
    of mechanically separated poultry when used as an ingredient in other 
    products. Many commenters stated that FSIS should continue allowing the 
    declaration of mechanically separated poultry on product labeling as 
    ``(Kind)'' or ``(Kind) meat'' (i.e., ``chicken,'' ``chicken meat,'' 
    ``turkey,'' and ``turkey meat'') when it is used as an ingredient in 
    poultry or meat food products.
        FSIS generally agreed with the commenters with regard to protein 
    quality, and protein and fat contents, and concluded that the tentative 
    positions on protein quality, and minimum protein and maximum fat 
    contents were unnecessary. Protein quality is not a health issue today, 
    and information regarding protein and fat contents is generally 
    available on the Nutrition Facts panel on most processed foods where 
    mechanically separated poultry might be used as an ingredient. 
    Furthermore, it was decided that the positions on quality control and 
    handling requirements would be better addressed as part of larger 
    regulatory efforts that were planned to consider ways of reducing the 
    potential for situations that would render any poultry or meat food 
    product adulterated, unwholesome, and/or misbranded. Therefore, the 
    Agency concluded that it was premature to address the need for 
    mandatory quality control or handling requirements for this one 
    distinct category of poultry product. However, the Agency was not in 
    agreement with the commenters on the other issues raised in the ANPR.
        The Agency maintained that a bone solids content requirement is 
    necessary because one of the characteristics that distinguishes 
    mechanically separated poultry from hand-deboned poultry is the method 
    of mechanical processing that results in a product which is safe in 
    terms of composition, but one in which there is greater potential for 
    the incorporation of powdered bone. The bone solids content of MSP is a 
    direct result of the manufacturing process which involves the crushing 
    of starting materials which consist of skeletal frames and carcass 
    shells on which bits and pieces of muscle and other edible tissue 
    remain after most of the muscle and other tissues have been removed by 
    hand. Thus, there is the need for controlling the process of 
    incorporating powdered bone into MSP so that it does not exceed the 
    level of one percent which is considered a ``good manufacturing 
    practice.'' The other distinguishing features that make mechanically 
    separated poultry different than hand-deboned poultry are physical form 
    and consistency. Informing consumers of such differences by a distinct 
    and separate labeling of the presence of mechanically separated poultry 
    in products in which it is used, is supported by the statutory 
    responsibility of FSIS to assure that all labels on poultry and meat 
    food products are accurate and not false or misleading.
        The Agency did agree that its tentative labeling approach to 
    identifying two types of mechanically separated poultry, based on the 
    level of bone solids, i.e., above or below 0.6 percent, which was 
    suggested in its March 1994 ANPR, appear to be in conflict. The 
    mechanical separation process results in a product that is materially 
    different than hand-deboned poultry in terms of its paste-like form and 
    batter-like consistency, regardless of the level of bone solids 
    present. The Agency tentatively concluded, after further review of the 
    approach presented in the March 1994 ANPR and the comments received in 
    response to it (and the prior June 15, 1993, ANPR), that continuation 
    of the present labeling policy, even for those finished products with 
    mechanically separated poultry that has a bone solids content of less 
    than 0.6 percent, does not inform the consumer that these products 
    contain the distinct ingredient mechanically separated poultry and that 
    this may result in misleading labeling. The Agency also maintained that 
    there is a need for bone particle size restrictions to augment the 
    measurement of bone solids content as an assurance that mechanical 
    separation processes are operating under good manufacturing practices 
    that prevent the inclusion of unacceptable large fragments in 
    mechanically separated poultry. The Agency also believed that in order 
    to show that the process of manufacturing MSP was in control, i.e., 
    operating under good manufacturing practices, records should be kept.
        The Agency disagreed with commenters' objections to the tentative 
    positions taken in the March 1994 ANPR on restricting the uses of 
    mechanically separated poultry as an ingredient in certain products, 
    e.g., in baby foods where there was a potential health effect 
    associated with fluoride in mechanically separated poultry made from 
    fowl, and where the textural characteristics of mechanically separated 
    poultry altered the basic nature of the product to which it may be 
    added, such as products represented as being composed of whole muscle. 
    FSIS maintained the position that such restrictions were necessary for 
    health reasons (in the case of the fluoride issue) or to protect the 
    consumer from misleading labeling.
        The Agency's positions on these major issues led to the publication 
    of the December 6, 1994 proposed rule.
    
    VII. Proposed Rule
    
        On December 6, 1994, FSIS published a proposed rule to amend the 
    Federal meat and poultry products inspection regulations to define and 
    standardize, and establish other requirements for poultry products 
    produced by mechanical separation, including provisions for the 
    composition and use of such products, and requirements for 
    manufacturing and labeling such 
    
    [[Page 55968]]
    products (59 FR 62629). The proposal prescribed a definition and 
    standard of identity for poultry products produced by mechanical 
    separation with 1 percent or less bone solids content, that required 
    compliance with certain criteria, e.g., bone solids content (measured 
    as calcium content) and bone particle size. The proposal also provided 
    recordkeeping and labeling requirements, and limitations on use of 
    poultry products produced by mechanical separation.
    A. Product Definition and Standard
        FSIS proposed to prescribe a definition and standard of identity 
    and composition for the poultry product with a paste-like form and 
    batter-like consistency that results from the mechanical separation of 
    and removal of most of the bone from attached skeletal muscle and other 
    tissue of poultry carcasses and parts of carcasses which has a bone 
    solids content of 1 percent or less. This product is commonly known in 
    the poultry industry as mechanically separated or deboned poultry.
        FSIS proposed that the boneless poultry products regulations 
    described in 9 CFR 381.117(d) no longer apply to MSP. FSIS indicated 
    that the current restriction on bone solids content in this regulation, 
    as enforced by limiting calcium content, would be included with other 
    compositional requirements in an MSP standard. Moreover, as a 
    standardized product, MSP would be differentiated from other poultry 
    product ingredients and it would be designated in the ingredients 
    statements on finished product labels by the name specified in its 
    definition and standard, in accordance with 9 CFR 317.2(c)(2) and 
    (f)(1) and 381.118(a). Product failing to meet the bone solids content 
    or bone particle size restrictions of the standard must be labeled as 
    ``Mechanically Separated (Kind) For Further Processing'' and may only 
    be used in producing poultry extractives, including fats, stocks, and 
    broths because the manufacturing process completely removes the bone 
    solids and bone particles.
        1. Product name. FSIS proposed to define the standardized product 
    that results from the mechanical separation and removal of most of the 
    bone from poultry carcasses and parts of carcasses by a distinctive 
    name. FSIS proposed that such product be called ``mechanically 
    separated chicken'' or ``mechanically separated turkey,'' for example. 
    FSIS indicated that this product differs significantly from boneless 
    poultry products produced by traditional hand-deboning techniques in 
    its spread-like form and consistency such that it should be regulated 
    as a separate, standardized ingredient. FSIS indicated that it would 
    welcome comments on other names that accurately reflected the process 
    from which this product was derived, as well as its form and 
    consistency.
        2. Bone solids content. FSIS proposed that the definition and 
    standard for MSP incorporate the existing restriction on the bone 
    solids content of mechanically separated poultry products of not more 
    than 1 percent (9 CFR 381.117(d)). FSIS also proposed that the 
    definition and standard include maximum calcium content levels of not 
    more than 0.235 percent in product made from turkeys or mature chickens 
    or 0.175 percent in product made from other poultry, as a measure of 
    bone solids content based on the weight of product that has not been 
    heat treated.
        3. Bone particle size. FSIS proposed that at least 98 percent of 
    the bone particles present in MSP be restricted to a maximum size no 
    greater than 1.5 millimeters (mm) in their greatest dimension and that 
    no bone particles could be larger than 2.0 millimeters in their 
    greatest dimension.
        4. Recordkeeping. FSIS also proposed that establishments that 
    manufactured MSP maintain records of bone solids content and bone 
    particle size as a measure of process control. These records had to be 
    made available to the inspector and any other duly authorized 
    representative of the Secretary upon request.
    B. Limitations on Use
        FSIS proposed certain limitations with respect to the use of MSP in 
    the formulation of poultry and meat food products. FSIS proposed such 
    restrictions based on the potential fluoride contribution of MSP made 
    from fowl (i.e., mature female chickens) and the characteristics of 
    MSP, including the kind of poultry from which it is made and its form 
    and consistency. FSIS also proposed that MSP may be used, except in 
    certain cases, in any product defined by regulatory standards or Agency 
    policies whereby ``(Kind)'' or ``(Kind) Meat'' (e.g., ``turkey,'' 
    ``turkey meat'') are being used, provided that it is identified as 
    ``Mechanically Separated (Kind)'' and conforms to requirements 
    regarding the presence of skin within natural proportions (9 CFR 
    381.117(d)).
        1. Kind of product limitation. FSIS proposed that when a poultry 
    product is required to be prepared from a particular kind or kinds of 
    poultry, (e.g., chicken), use of MSP of any other kind (e.g., 
    mechanically separated turkey), would not be permitted. This provision 
    assures that the kind of MSP used in a poultry product, such as 
    mechanically separated chicken, is the same kind as is represented in 
    the product name or other labeling. For example, product named 
    ``chicken bologna'' could not be composed of mechanically separated 
    turkey because such action could, among other things, result in false 
    or misleading labeling by implying that the bologna was made with a 
    chicken ingredient, when, in fact, it contained a turkey ingredient.
        2. Limitations on product made from fowl. FSIS proposed that the 
    use of mechanically separated chicken made, in whole or in part, from 
    fowl (i.e., mature female chickens, as defined in 9 CFR 
    381.170(a)(1)(vi)) not be permitted in baby, junior, or toddler foods. 
    The Agency based these restrictions on the potential fluoride 
    contribution of product made from fowl to dietary intakes of young 
    children.
        The Agency noted that this position was supported by the 1979 
    Report, which was the best data available. FSIS recognized, however, 
    that views on fluoride consumption have changed in the last few years, 
    and in particular, recent views on the benefits of fluoride in the 
    diet, including the diets of children. Comments were invited on this 
    issue that would have an impact on the current validity of the proposed 
    restriction on use of MSP from fowl .
        3. Poultry product limitations. FSIS proposed that MSP not be 
    allowed in poultry products that are composed of whole poultry muscle, 
    and expected to be as such by consumers, except that it may be used for 
    binding purposes at a level that is sufficient for purpose. However, 
    FSIS would allow MSP in the sauce portion or any dressing of poultry 
    products.
        FSIS also proposed that MSP not be permitted in poultry products 
    that have been processed only to the extent of cutting or grinding 
    because it considers its use to be inconsistent with the basic whole-
    muscle character associated with such products. The Agency also would 
    not permit MSP to be used in poultry products that are processed, 
    convenience versions of ready-to-cook poultry or cuts or solid pieces 
    of poultry or poultry meat for the reason stated above.
        FSIS proposed no restrictions on the amount of MSP that can be used 
    in poultry products, or meat food products, in which it is a permitted 
    ingredient. However, prevailing standards of identity and composition 
    for particular products may contain quantitative limits (e.g., a limit 
    on the amount of poultry product ingredients permitted in cooked 
    sausages such as frankfurters 
    
    [[Page 55969]]
    and bologna (9 CFR 319.180)) or other restrictions on the quantity of 
    various poultry product ingredients.
    C. Labeling
        FSIS proposed special provisions for the labels of MSP. If adopted, 
    these provisions would supplement other, more general requirements for 
    such labels (see 9 CFR parts 317 and 381, subpart N). The provisions 
    are discussed below.
        1. The product. FSIS proposed the following labeling provisions for 
    MSP: (1) the name of the product (e.g., ``Mechanically Separated 
    (Kind)'' (where ``kind'' refers to chicken, turkey, or other poultry) 
    must be followed immediately by the phrase(s) ``made from fowl'' unless 
    it is not made, in whole or part, from mature female chickens, and 
    ``with excess skin'' unless it is made from poultry product that does 
    not include skin in excess of the natural proportion present on the 
    whole carcass; and (2) there must be appropriate descriptive 
    terminology in the labeling of MSP if heat treatment has been used in 
    the preparation of such product, e.g., ``cooked.'' Because the 
    characteristics described in (1) and (2) above are ones which would 
    affect the use of MSP, FSIS proposed that, in order to assure 
    compliance with regulatory requirements and thereby prevent the 
    adulteration and misbranding of finished poultry products and meat food 
    products, such characteristics had to be clearly identified on the 
    label of MSP when MSP left the establishment at which it was 
    manufactured.
        2. Finished poultry products and meat food products. FSIS proposed 
    that the standardized paste-like product that results from the 
    mechanical separation and removal of most of the bone from the skeletal 
    muscle and other edible tissue of poultry carcasses and parts of 
    carcasses be defined by its own name, e.g., ``Mechanically Separated 
    (Kind),'' which would be declared in the ingredients statements on 
    finished product labels by the name specified in its definition and 
    standard.
    
    VIII. Discussion of Comments
    
        FSIS received 2420 comments in response to its December 6, 1994, 
    proposed rule. The majority of the comments (over 95 percent) were 
    submitted by individuals and food manufacturers and distributors; a few 
    (less than 5 percent) were submitted by trade associations, consumer 
    advocate organizations, academia, developers of machinery, food 
    retailers, food consultants, law firms, an agency of the Federal 
    government, and a foreign government. The majority of the comments 
    related to product name. The comments are summarized below.
    A. Product Definition and Standard Product Name
        Nearly all of the comments were in response to the proposed 
    requirement regarding the product name for MSP which established a 
    distinct name for this product, mechanically separated (kind), where 
    ``kind'' represents the kind of poultry, such as chicken or turkey, 
    from which the product was made. Of these, roughly one-quarter agreed 
    with defining the product by the distinctive name of ``Mechanically 
    Separated (Kind) (MS(K)).'' Most of the commenters supporting the 
    proposal stated that MSP is different from hand-deboned poultry and the 
    product label should inform consumers of which type product they are 
    getting. Further, the commenters asserted that ``they have a right to 
    know'' if mechanically separated poultry is being used because 
    mechanically separated poultry ``has more bone particles, calcium, and 
    cholesterol'' (than hand-deboned poultry) because of the way it is 
    processed. The commenters said that if the name is not changed to MSP, 
    i.e., mechanically separated (kind), consumers might think that they 
    are getting a product that has no bone particles and is identical to 
    hand-deboned poultry. Several commenters also suggested that it is 
    unfair for FSIS to treat mechanically separated poultry differently 
    than mechanically separated meat with regard to its labeling and that 
    this proposed rule will create parity between the poultry and red meat 
    industries.
        The majority of the other commenters disagreed with the proposed 
    position to define the product by the name MSP. The commenters stated 
    that: (1) Poultry that is mechanically deboned is the same as any other 
    poultry and should be treated and labeled like any other poultry, i.e., 
    hand-deboned; (2) current labeling is truthful and accurate, unlike the 
    term ``mechanically separated,'' which suggests it is different because 
    mechanical equipment is used; (3) labeling MSP differently than it is 
    currently labeled will confuse and mislead consumers into believing 
    that the product has undergone a change and is somehow different; (4) 
    the proposed labeling terminology will force manufacturers to undertake 
    numerous unnecessary product reformulations and promote new labeling 
    nomenclature that is both unappealing and unnatural in context; (5) the 
    common or usual name of finely ground turkey or chicken is ``turkey or 
    chicken,'' by virtue of consistent, widespread and long-term usage of 
    the term by the industry; (6) the addition of the words ``mechanically 
    separated'' to the ingredients statement unnecessarily contributes to 
    the general cluttering of limited label space; (7) ingredient labeling 
    should be based upon product characteristics not on the manufacturing 
    method, because most, if not all, ingredients in all food products are 
    mechanically processed at some point, e.g., ``pitted cherries are 
    mechanically pitted but do not require mechanically pitted on the 
    label'' or ``orange juice squeezed by a machine is not required to be 
    labeled as mechanically squeezed orange juice;'' and (8) the term will 
    frustrate technological innovation by establishing a false dichotomy 
    between mechanical and ``natural'' processes.
        Commenters also suggested that any further regulation or change of 
    ingredient declaration for this product is unnecessary and not based on 
    consumer expectations or scientific determination. Commenters stated 
    that there is no adequate justification for setting a new standard of 
    identity for this product. They stated that FSIS has not provided any 
    research, consumer studies, or marketing data to support the need for 
    this labeling change and that no new evidence has been presented by 
    FSIS to refute that mechanically separated poultry is materially the 
    same as poultry derived from hand-deboning. Commenters also questioned 
    placing additional requirements on a product that is already accepted 
    by consumers. Another commenter stated that the only reason FSIS was 
    initiating a change to the name for MSP was because of the lawsuit by 
    the red meat sausage manufacturers (i.e., Bob Evans Farm, Inc. et al., 
    v. Espy).
        Further, one commenter alleged that the reason given by FSIS for 
    proposing this rule, which is to prevent mislabeling of products and 
    misleading consumers, is invalid. This commenter was the only one to 
    offer consumer data7 regarding consumer reactions to labeling MSP. 
    The commenter contracted out a consumer study to measure consumers' 
    preferences for the terms ``chicken,'' ``turkey,'' ``mechanically 
    separated chicken or turkey,'' and ``finely ground chicken or turkey.'' 
    The commenter concluded that the consumer research shows that ``the 
    majority of consumers consistently report no preference to change from 
    current labeling practices.'' According to the commenter, ``less than 2 
    in 10 
    
    [[Page 55970]]
    consumers in their study expressed the opinion that `mechanically 
    separated' is an appropriate labeling term for comminuted poultry,'' 
    and that, if a change is made to current policies, ``finely ground'' 
    would be a more preferred term. The commenter concluded that the 
    results of the research were applicable to consumers in general. 
    Several other commenters cited the consumer research presented by this 
    commenter and also asserted that, if any change is made with respect to 
    the product name, ``finely ground (Kind)'' is much more informative 
    than ``MSP.'' Other commenters suggested other names such as 
    ``ground,'' ``finely textured,'' and ``finely comminuted'' poultry.
    
        \7\Comment submitted by the National Turkey Federation is 
    available for public review at the FSIS Docket Clerk's office.
    ---------------------------------------------------------------------------
    
        FSIS has concluded that the name mechanically separated poultry, 
    i.e., ``mechanically separated (kind of poultry) (MSP)'' (e.g., 
    mechanically separated chicken) should be adopted as the product name 
    and that a separate standard of identity should be established for this 
    product to reflect its name and set forth appropriate parameters for 
    the product. FSIS has determined that the name ``mechanically separated 
    (kind of poultry)'' is an appropriate, nonmisleading name for this 
    product based on comments received in this rulemaking, an examination 
    of the process by which MSP is made, the distinct paste-like form and 
    batter-like consistency of MSP, the need to distinguish MSP's 
    differences from hand-deboned poultry on labeling to comply with FSIS' 
    statutory consumer protection responsibilities to assure that labels of 
    meat and poultry products are accurate, and a review of product name 
    issues raised in the rulemaking for mechanically separated meat, a red 
    meat product produced in a mechanical manner similar to MSP.
        As will be discussed more fully below, FSIS does not agree with 
    various assertions of some commenters that establishing the name MSP 
    for this product is unnecessary and unjustified. The name mechanically 
    separated (kind of poultry)'' clearly and precisely describes the 
    manner by which the product is made. The process by which MSP is made 
    along with the type of starting materials used to make it, which 
    contain only bits and pieces of muscle tissue and other edible tissues, 
    such as skin and fat, are what causes this product to be different from 
    hand-deboned poultry. Consumers will be misled if they are not informed 
    that this product is materially different from hand-deboned poultry, 
    and the appropriate way to inform them of this difference is to 
    establish a name for MSP that distinguishes it from hand-deboned 
    poultry. As FSIS recognized in its rulemaking on MSM, the ability of 
    any name to convey in only a few words the nature of a product is 
    limited. However, FSIS has determined that the term MSP will 
    appropriately notify consumers that the product they are purchasing 
    contains a distinct ingredient that results from the mechanical 
    separation process.
        FSIS received various comments that suggested alternative names for 
    the product, if it was concluded that more descriptive labeling was 
    necessary, such as ``ground (kind of poultry),'' ``finely ground (kind 
    of poultry),'' ``comminuted (kind of poultry),'' and ``finely textured 
    (kind of poultry).'' FSIS has concluded that these names do not provide 
    a concise and accurate description of the product because the usage of 
    the terms is not unique to MSP, and these terms convey the impression 
    that the product has the same form and consistency as product with 
    defined particles of meat, skin, and fat, rather than, as here, one 
    that has a paste and batter-like consistency. FSIS has concluded here, 
    as it did for its previous rulemaking on MSM (47 FR 28214, 28224), a 
    similar product produced by a mechanical separation process that has a 
    paste and batter-like consistency, that the name of the product should 
    include the term ``mechanically'' to indicate the nature of the process 
    used in making the product. When FSIS adopted the name ``mechanically 
    separated'' in its 1982 rulemaking on MSM to describe mechanically 
    separated livestock product such as ``beef'' or ``pork,'' the adoption 
    of this name was challenged in a lawsuit. The name was upheld by the 
    Courts in Community Nutrition Institute (CNI) v. Block, No. 82-2009 
    (D.D.C. Dec. 1, 1982), aff'd 749 F.2nd 50 (D.C. Cir. 1984). As also has 
    been previously noted, the term ``mechanically separated'' is 
    recognized internationally by the Codex Alimentarius Commission of the 
    United Nations and by individual countries that trade with the United 
    States.
        In its proposed rule, FSIS proposed the term ``Mechanically 
    Separated'' (Kind) for MSP. As a point of clarification, FSIS would 
    like to make it clear that ``kind'' refers to the ``kind of poultry,'' 
    such as chicken, turkey, etc., used in a product. FSIS feels that the 
    name for this ingredient should be clear about this fact, and, 
    therefore, has clarified its regulations to reflect this fact.
        FSIS also wishes to clarify the scope of its definition and 
    standard for MSP. As with FSIS' definition and standard for MSM, the 
    standard and definition for MSP are intended to only cover the product 
    with a paste-like form and batter-like consistency manufactured by 
    machinery that operates on the differing resistance of hard bone and 
    soft tissue to pass through small openings, whether it employs sieves, 
    screens, or other devices or whether or not bones are pre-broken before 
    being fed into such equipment. This regulation, however, is not 
    intended to cover whole pieces of muscles that are mechanically 
    separated from poultry carcasses or parts of carcasses. FSIS has 
    clarified its regulation in this regard by indicating that the product 
    that FSIS is regulating is the one that results from the mechanical 
    separation process that has a paste-like form.
        In response to the commenters who suggested that there is no 
    difference between MSP and hand-deboned poultry and, that therefore, 
    they should be labeled the same, FSIS disagrees with this comment. The 
    method of obtaining poultry products by the mechanical separation 
    process results in a product whose form and consistency materially 
    differ from that of poultry derived by traditional hand-deboning 
    methods.
        MSP is a poultry product that results from the mechanical 
    separation and removal of most of the bone from the skeletal muscle and 
    other edible tissues, such as skin with attached fat, of poultry 
    carcasses and parts of carcasses. The process of manufacturing MSP 
    begins with starting materials from which most of the muscle and other 
    tissue has already been removed by hand, on which only bits and pieces 
    of tissue remain. The process involves the crushing of the bones (i.e., 
    the starting material) with adhering tissue and the removal of the bone 
    using high pressure which forces the mass of tissue through holes in 
    the equipment, allowing a small amount of powdered bone to pass along 
    with the edible tissue. This results in a product with a paste-like 
    form and cake batter-like consistency, that no longer resembles 
    ``chicken'' or ``turkey.'' The rigors of the mechanical separation 
    process alter the structure of the muscle fibers, skin, fat, and other 
    tissues of the starting materials so that they become a blended and 
    amorphous paste-like mass that is no longer recognizable as ``chicken'' 
    or ``turkey.'' On the other hand, ``hand-deboned poultry'' is a 
    boneless poultry product that is a result of removing whole muscle and 
    other edible tissue (e.g., skin with attached fat) from poultry 
    carcasses and parts of carcasses, using hand-deboning methods, e.g., 
    hand-held knives. Such product is easily recognized as the kind of 
    boneless muscle and tissue that would be gotten by a person who used 
    
    [[Page 55971]]
    a knife in their own kitchen to cut off pieces from a poultry carcass 
    or parts of poultry, such as drumsticks, thighs, and breasts, because 
    there is not a substantial disruption of the physical form of the 
    product by hand-deboning. With hand-deboning, the muscle fibers are 
    visible and maintain much of their original configuration. 
    Understandably, hand-deboned muscle and other tissue may be 
    subsequently processed through a grinder, flaking machine, or dicer to 
    yield poultry in ground, flaked, or diced form, but such product still 
    exhibits a physical character associated with ``chicken'' and 
    ``turkey,'' rather than a cake batter. This is because the rigors of 
    these processes which occur after hand-removal of muscle and other 
    tissue do not alter the physical nature of the tissues to the degree 
    that mechanical separation does.
        In response to the comments regarding consumers being confused or 
    misled by labeling MSP differently than is currently labeled, i.e., as 
    ``chicken'' or ``turkey,'' the Agency is not aware of reliable or 
    conclusive data that support the assertion that consumers will be 
    confused or will believe that the products in which MSP has been used 
    are different from the products they purchase after the final rule is 
    effective. The Agency does not agree with one commenter's assertion, 
    the American Meat Institute, that a report of a study it 
    submitted8 on an evaluation of mechanically separated red meat 
    issues support its view that the required labeling for MSP has ``a 
    great affirmative potential to mislead.'' The report cannot be relied 
    upon as support for this conclusion for a number of reasons, including 
    the following discussed here. The report indicates it used focus group 
    sessions to, among other things, explore consumer reaction to and 
    understanding of the term ``mechanically separated meat.'' As noted 
    previously, MSM is a red meat product produced by a mechanical 
    separation process similar to that by which MSP is made. However, very 
    little of this product has been made and used in products with which 
    consumers are familiar, and it is not surprising that consumers might 
    not be aware of the product the term ``mechanically separated meat'' 
    represented. Therefore, reactions to labels for products containing 
    mechanically separated meat would not necessarily be applicable to the 
    labels for mechanically separated poultry. Furthermore, as the study 
    itself states, the focus group method used does not ``produce precise, 
    absolute measures,'' ``its findings must be seen as hypotheses,'' and 
    ``findings from focus group sessions are not projectable to a larger 
    population.'' Moreover, the study also sought consumers' reactions to 
    other labeling issues and the multiplicity of issues raised could bias 
    the responses made to the mechanically separated meat labeling issue 
    and, in turn, the validity of applying the finding to labeling of 
    mechanically separated poultry.
    
        \8\A copy of the comment and the report are available for review 
    in the FSIS Docket Clerk's office.
    ---------------------------------------------------------------------------
    
        In the Agency's opinion, the declaration of MSP as ``chicken'' or 
    ``turkey,'' rather than by a distinctive name in the ingredients 
    statement of a product in which it used, is misleading. ``Chicken'' and 
    ``turkey'' are terms associated with boneless poultry products derived 
    by hand from starting materials that consist of whole and half 
    carcasses, and parts of carcasses, on which whole muscle and other 
    edible tissues substantially exist. FSIS believes that MSP differs 
    significantly from boneless poultry produced by hand-deboning 
    techniques because of its paste-like form and batter-like consistency. 
    The form and consistency of MSP is a direct result of the mechanical 
    machinery (i.e., process) from which it is derived which involves the 
    removal of bits and pieces of muscle tissue and other edible tissues 
    from boned-out materials, i.e., skeletal frames and carcass shells. 
    Therefore, FSIS has concluded that MSP should be regulated as a 
    separate, standardized ingredient, and that the characteristics of this 
    ingredient are sufficiently different from the characteristics of hand-
    deboned poultry that it should be identified on product labels in a way 
    that distinguishes it from hand-deboned ingredients. Such labeling will 
    help further inform consumers about the content of the products they 
    are purchasing. FSIS believes that such a labeling requirement is 
    necessary in order to fulfill its statutory responsibility under the 
    FMIA and PPIA to protect consumers by assuring that the labels of 
    poultry and meat food products are accurate and not false or 
    misleading.
        If the commenters believe that consumers will be misled into 
    thinking that they are purchasing products that are different from what 
    they have historically purchased or that the product has changed, the 
    industry would have a full year before the rule becomes effective, to 
    educate consumers that the products they will be purchasing that 
    reflect the name MSP in the ingredients statement are what they have 
    historically purchased. FSIS, itself, also believes it is important to 
    inform consumers about this product. Therefore, it intends to review 
    its public information program and incorporate into it appropriate 
    explanatory material on the process used to make MSP, its 
    characteristics, its wholesomeness, its safety, and its nutritional 
    qualities. The Agency believes that consumers will be misled if 
    mechanically separated poultry is not separately and distinctly listed 
    as an ingredient, because of the differences previously discussed 
    between it and hand-deboned poultry. The Agency's responsibility under 
    its consumer protection mission is to assure that labeling information 
    is accurate and helps consumers make informed food purchasing 
    decisions.
        In response to the comments that asserted that the requirement for 
    labeling ``MSP'' will result in a need for manufacturers to reformulate 
    products that currently contain MSP, and ``promote new labeling 
    nomenclature that is both unappealing and unnatural in context,'' the 
    Agency is not certain as to why such changes will be necessary. There 
    were no reliable or conclusive data submitted in support of these 
    comments that show a potential negative impact on poultry or meat food 
    product formulations. It is the Agency's belief that MSP continues to 
    be a wholesome and safe, low-cost source of protein, with nutritional 
    attributes comparable to ``chicken'' and ``turkey.'' The paste-like 
    form and batter-like consistency of MSP that results from the 
    mechanical separation process provide unique functional characteristics 
    that are a key benefit for its use in the variety of poultry and meat 
    food products (especially emulsion-type products like hot dogs) in 
    which it is currently used. This benefit seems likely to ensure 
    continued use of the ingredient in products that are meeting the 
    demands of consumers who purchase the products.
        Further, in response to comments about a negative impact labeling 
    will have on consumers' acceptance of products labeled with ``MSP,'' 
    there were no persuasive arguments made that support this as an 
    outcome. The majority of the comments that disagreed with the proposed 
    identity of the products as ``MSP'' did not provide data, but offered 
    opinions on the consumers' view of the proposed name. The data that 
    were presented by the one commenter that pursued consumer research were 
    not compelling because of shortcomings in the study design.
        The report of consumer research submitted by the commenter tested 
    consumer preferences for the terms ``mechanically separated,'' ``finely 
    ground,'' and ``chicken'' and ``turkey,'' 
    
    [[Page 55972]]
    as names for MSP. The report concluded that the majority of consumers, 
    if given the choice between names such as ``mechanically separated 
    chicken or turkey,'' and ``turkey'' or ``chicken,'' preferred labeling 
    to stay as it is, ``turkey'' or ``chicken.'' If, however, a change in 
    the name is made, the report concluded that ``finely ground'' is 
    overwhelmingly preferred to ``mechanically separated.'' The commenter 
    concluded that the data show that a labeling change to ``mechanically 
    separated'' is unjustified and that consumers gain no salient 
    information from the use of such a term. They indicated that the data 
    were gathered from consumers who were informed as to the Agency's 
    concerns regarding the presence of ``powdered bone'' and a change in 
    texture of finely comminuted poultry.
        The survey data's conclusions were based upon 300 interviews of 
    people in five states, who were given a questionnaire, after reading an 
    informational handout. The commenter indicated that the survey 
    participants had used cold cuts, luncheon meats, hot dogs, or smoked 
    sausage, in the past three months, and were heads of households and 
    primary or co-primary food purchasers between the ages of 21-69, 80% 
    who were female and 20% who were men.
        The Agency has reviewed the survey conducted by the commenter and 
    has determined that the survey's findings are not reliable. The 
    informational handout given to survey participants to read before they 
    answered the survey questions did not tell those interviewed the 
    following information which they needed to have in order to make 
    informed responses to the questions posed to them: (1) a description of 
    the difference between the form and consistency of MSP and hand deboned 
    poultry; (2) descriptions of how the mechanical separation process 
    works and what the product is like that comes from it; (3) a 
    description of the difference in the nature of the starting materials 
    for hand-deboned poultry and MSP, and (4) a clear idea of the types of 
    products in which MSP is used. Further, the interviewees were not shown 
    any samples of MSP and hand-deboned poultry and, thus, did not view 
    these products and see the differences in form and consistency between 
    the products.
        Moreover, the content of the handout was slanted in the sense that 
    it described only certain aspects of MSP and used confusing names for 
    MSP which obscured the difference between MSP and hand deboned poultry, 
    thus making any considered labeling change appear to be unnecessary. 
    For example, the informational handout indicates that the way MSP is 
    made is that ``new machinery was invented that could separate poultry 
    meat from bone without the need of hand deboning.'' This, however, is 
    only a partial description and is, thus, misleading. As has been 
    previously stated in this docket, the new machinery does not completely 
    separate meat from bone. Rather a small amount of powdered bone that 
    results from the fact that the machines crush the bone of the starting 
    materials from which the MSP is made, becomes mixed together with the 
    other material, such as muscle tissue and skin removed from the 
    starting materials. Another example is that the handout states that 
    ``in either case,'' referring to MSP and hand deboned poultry, ``the 
    original form of the poultry is changed when it is used as an 
    ingredient in making hot dogs, bologna, and other processed meat.'' 
    This is misleading because, as has been previously noted, MSP is an 
    amorphous and paste-like mass that is not recognizable as bits and 
    pieces of chicken and turkey, and even if hand-deboned chicken or 
    turkey was further processed by grinding, it would still exhibit a 
    physical character associated with chicken or turkey.
        Moreover, the handout indicated that both mechanically separated 
    and hand deboned poultry may contain up to 1% bone, and that the 
    powdered bone in MSP ``provides nutritionally available calcium.'' 
    However, whether the powdered bone in MSP provides a nutrient that 
    consumers want has nothing to do with the issue of what the name should 
    be of this product. Many types of products provide calcium but they are 
    appropriately described by different names because they are distinct 
    types of products. The handout also stated that ``in its raw, fresh 
    form, consumers are familiar with ground turkey which may be made using 
    the same equipment.'' This statement is misleading because the 
    important aspect of the way the machinery operates to produce a product 
    with a paste-like form and batter-like consistency is not presented.
        Moreover, it is misleading to conclude that switching to the term 
    ``mechanically separated'' would likely result in substantial decrease 
    in consumption of this products, when the interviewees were not told 
    that it was the distinct character of this product, rather than a 
    question of the wholesomeness of the product, that was a basis for 
    FSIS' proposed labeling change. Further, the interviewees also were not 
    told that product made without MSP could possibly cost more to purchase 
    than one made with MSP.
        The conclusions reached by the commenter from the research are also 
    not valid because the study design did not account for possible errors 
    that may make the information gathered unreliable. The study used a 
    mall intercept survey approach and involved soliciting reactions on the 
    terms from 300 shoppers in shopping malls. The sample is not 
    statistically representative of a national population because of the 
    way the participants were selected. Although the commenter claimed that 
    they have data from ``true consumers,'' the participants represent a 
    population who happened to be able to shop in the mall, and on the day 
    of the survey. A concern with the usefulness of the results stems from 
    the non-probability, quota sampling approach. Non- probability samples 
    do not permit an estimate of sampling error. With smaller samples, the 
    range any reported percentage can take can be relatively large. Since a 
    sample of 300 respondents is smaller than most national level consumer 
    surveys, comparisons which look different may not be statistically 
    different when inferred to the population of primary food buyers. For 
    example, the difference between the 10 percent of respondents reporting 
    they will probably buy more product labeled as ``finely ground'' versus 
    the 6 percent that reported they will probably buy less could be due to 
    sampling error. Additionally, the approach to sampling tends to under-
    represent persons who are difficult to contact or reluctant to 
    participate. In this case, under representation of certain persons with 
    different views is likely to yield underestimates of respondents who 
    report that the issue is of no importance to them.
        In response to the comments that stated that the term 
    ``mechanically separated'' is misleading because it suggests the 
    product is different because mechanical equipment is used, FSIS 
    believes that the use of mechanical equipment is, in fact, the very 
    reason MSP differs from hand-deboned poultry. The process of removing 
    bits and pieces of edible muscle and other tissues from starting 
    materials consisting of skeletal frames and shells is far different 
    than the process of removing muscle and other tissue from bone by hand. 
    The process of manufacturing MSP results in a paste-like product which 
    no longer resembles the consumer's expectation of ``chicken'' or 
    ``turkey.'' The examples provided by the commenter of other products 
    that are ``mechanically'' processed, and which do not reflect this in 
    their names, are not comparable 
    
    [[Page 55973]]
    because the form and consistency of the products mentioned would not 
    differ significantly whether the products were processed by hand or 
    machine.
        Therefore, the Agency believes that MSP accurately and concisely 
    describes the poultry product produced by mechanical deboning, 
    indicating the nature of the process by which and the kind of poultry 
    from which it is made, and distinguishing it from poultry product 
    ingredients produced by traditional hand-deboning techniques. The name 
    includes ``(Kind of poultry)'' rather than ``poultry'' to make it clear 
    that the kind of poultry (9 CFR 381.1(b)(40)) from which the product is 
    made must be specified (e.g., ``Mechanically Separated Chicken'').
        In response to comments that suggested the term ``mechanically 
    separated'' will frustrate technological innovation by creating a false 
    dichotomy between mechanical and ``natural'' processes, the Agency 
    stresses that the mere application of the mechanical means of 
    separating bone from muscle and other tissues does result in a 
    materially different product than that which is derived by hand. The 
    action of mechanical separation of bone from poultry tissue involves 
    crushing bones on which bits and pieces of meat, skin, and fat remain 
    after hand removal of the majority of edible tissue. The bones with 
    adhering tissue are forced under high pressure through screens or 
    sieves in the machinery to result in a paste-like and batter-like 
    composite of tissues that had been adhering to the bones, that also 
    contains a minute amount of powdered bone. The physical action of the 
    mechanical process cannot be duplicated by hand-deboning methods to 
    result in a similar product.
        MSP has been referred to as ``Mechanically Separated'' Poultry 
    within the meat and poultry industries to specify the form and 
    derivation of the product. FSIS is aware that other descriptions have 
    been associated with poultry product produced by mechanical separation, 
    such as ``mechanically deboned'' poultry, ``finely ground'' poultry, 
    and ``finely comminuted'' poultry. There are reasons why these other 
    terms do not appropriately convey the identity of MSP.
        FSIS believes that where a primary distinguishing characteristic of 
    a standardized product is its bone content, it would be inappropriate 
    to define it by a name that includes the term ``deboned'' and use of 
    this term in labeling might mislead consumers by implying that such 
    product contains no bone. This was also concluded in the final rule 
    that defined and standardized MSM (47 FR 28214). Although consumer 
    focus group research reported in the MSM proposed rule (46 FR 39274) 
    suggested that consumers thought that ``mechanically deboned'' is a 
    term that is more acceptable than ``mechanically processed,'' 
    ``mechanically separated,'' and ``mechanically recovered,'' the Agency 
    in its final rule for MSM rejected the term ``mechanically deboned'' in 
    lieu of ``mechanically separated.'' The basis was that it was believed 
    that ``mechanically deboned'' would incorrectly represent to consumers 
    that the product does not contain bone.
        With regard to other terms that refer to the form or consistency of 
    poultry products, e.g., ``finely comminuted,'' ``comminuted,'' ``finely 
    ground,'' ``ground,'' and ``finely textured,'' the Agency does not view 
    such terms as truly reflective of the form and consistency of MSP. MSP 
    is paste-like in form and like a cake-batter in consistency. When it 
    emerges from the mechanical separation machinery, it is an amorphous 
    blend of the tissues removed from the skeletal frames and shells that 
    were the starting materials. The process uses high pressure and 
    incorporates a minute amount of powdered bone into the product in the 
    operation of removing bone from the tissue. Terms such as those 
    mentioned are used to reflect products with a more defined particulate 
    size and would be perceived that way by consumers, e.g., as products 
    with a form and consistency comparable to ground beef. Additionally, 
    terms such as ``comminuted'' are not readily understood by many 
    consumers and only have a common usage and understanding among those 
    involved in the meat and poultry industry. Terms such as ``finely 
    ground'' and ``comminuted'' have also been used by industry 
    interchangeably to describe ground poultry, i.e., poultry with defined 
    muscle particles. Moreover, the terms cited above have been used 
    indiscriminately to refer to MSP, and although they relate to form and 
    consistency, do not sufficiently inform consumers that MSP is an 
    ingredient in the products they purchase. Therefore, these terms are 
    limited in their ability to effectively meet the Agency's communication 
    objective of conveying distinctly the presence of MSP on the labels of 
    products. Furthermore, there were not any comments received that 
    offered other, novel terms that could be applied to MSP.
        Regarding the comments that cited the long-term use of the terms 
    ``chicken,'' ``turkey,'' etc., to refer to mechanically separated 
    poultry, as the reason for not changing the name of MSP, the Agency has 
    taken into account the information and experience acquired since the 
    first regulatory action on MSP in 1969 and current regulatory policies, 
    and has reviewed and reevaluated the existing regulations, particularly 
    in light of the labeling issues. As a result of its review and 
    reevaluation, the Agency has concluded that the distinct declaration of 
    ``MSP'' is necessary after a careful review of (1) the process of 
    manufacturing MSP which results in a product with a paste-like form and 
    cake-batter-like consistency, (2) the characteristics (i.e., form and 
    consistency) of MSP which are significantly different from those 
    expected of ``chicken,'' ``turkey,'' etc., which are derived by hand-
    deboning, (3) the issues raised in rulemakings and court decisions that 
    resulted in the distinct identity of the livestock product similar to 
    MSP as ``MS(S),'' because (in part) of the form and consistency of that 
    product, and (4) the statutory responsibilities to protect the public 
    and prevent the preparation and distribution in commerce of poultry 
    products and meat food products which are misbranded or not properly 
    marked, labeled, or packaged.
    Bone Solids Content
        FSIS stated in the proposed rule that the definition and standard 
    for MSP would incorporate the existing restriction on the bone solids 
    content of mechanically separated poultry products of not more than 1 
    percent. All of the 26 commenters responding to this issue expressed 
    strong support for restricting the bone solids content to no greater 
    than 1 percent. After evaluating data on substances of potential 
    concern that may tend to concentrate in bone, the 1979 report on health 
    and safety aspects of the use of mechanically separated poultry did not 
    recommend any change in the existing bone solids limit. FSIS continues 
    to believe that the requirement of no more than one percent bone solids 
    content is reflective of good manufacturing practices that result in 
    wholesome and safe boneless poultry products.
        Therefore, this final rule will restrict the bone solids content to 
    no greater than 1 percent, as represented by calcium content to a 
    maximum level of not more than 0.235 percent in product made from 
    turkeys or mature chickens or 0.175 percent in product made from other 
    poultry, as a measure of bone solids content based on the weight of 
    uncooked product (i.e., product that has not been heat treated). The 
    differences in the calcium value between turkeys and mature chickens, 
    and the value for 
    
    [[Page 55974]]
    other poultry, are attributable to the higher level of calcium found in 
    turkey bones which are typically larger than other poultry bones, and 
    due to more calcium being deposited over the lifetime of older 
    chickens.
    Bone Particle Size
        Twenty-six commenters responded to the proposed bone particle size 
    requirement which restricts at least 98 percent of bone particles to a 
    maximum size no greater than 1.5 millimeters (mm) in their greatest 
    dimension and allows no bone particles to be larger than 2.0 
    millimeters in their greatest dimension. About half of the 26 
    commenters supported the restriction of bone particle size. One of the 
    commenters stated that the bone particle requirement provides consumers 
    with sufficient protection from any hard bone particles and also, from 
    any constituents which might not normally be found in items 
    manufactured from muscle tissue using the traditional hand-deboning 
    process.
        The other half of the commenters opposed setting limits on bone 
    particle size stating that for more than 20 years of use of MSP, bone 
    particles have not been a significant problem. The commenters believe 
    that the nature of the separation process itself, with the comminution 
    of product which is pushed through screens under pressure, minimizes 
    the likelihood of large bone particles. Furthermore, the relative 
    softness of poultry bones due to their age and size make them unlikely 
    to present a physical hazard. One commenter stated that the American 
    Dental Association Health Foundation found no health problems 
    associated with poultry bone particles and that the Michigan State 
    University has reported no digestibility problems of issue. Other 
    commenters cited the 1979 Report's conclusion that ``bone particles in 
    MSP will not present any health hazard because of size or hardness, 
    provided that bone particle size is controlled.'' Commenters also 
    suggested that requiring standardized bone particle limitations will 
    result in increased analytical costs to the processor without improving 
    or otherwise positively effecting food safety. Other commenters pointed 
    out that the proposed rule did not suggest a method by which bone 
    particle testing can be conducted.
        FSIS believes that a bone particle size limitation augments the 
    bone solids content restriction and is a meaningful indicator of a 
    mechanical separation operation that effectively removes bone from 
    muscle and other tissue. The mechanical separation process involves 
    bone crushing and screening out bone from soft tissue, thereby 
    providing a mechanism for limiting the amount of bone in the product. 
    The mechanism of separating bone from tissue does not necessarily make 
    the remaining bone particles uniform in size. Bone is an unexpected 
    ingredient and the process of mechanical separation should be operated 
    to avoid the likelihood of large bone particles occurring. If bone were 
    present in such a particle size as to be readily apparent to the taste 
    or touch, it would be identifiable as bone and might be reason to 
    consider the product adulterated. The 1979 Report recommended that bone 
    particle size be controlled to ensure that equipment type or processing 
    does not result in unacceptably large bone fragments in mechanically 
    separated poultry. There were no new data submitted by commenters that 
    refute the data in the 1979 Report and, thus, they appear to indicate 
    the reasonable limits, i.e., good manufacturing practices, by which 
    manufacturers are operating. FSIS agrees with the recommendation in the 
    1979 Report and is, therefore, requiring that at least 98 percent of 
    the bone particles present in mechanically separated poultry have a 
    maximum size no greater than 1.5 mm in their greatest dimension and 
    that no bone particles be greater than 2.0 mm in their greatest 
    dimension.
    Recordkeeping of Calcium and Bone Particle Size
        The proposed recordkeeping requirements required that manufacturers 
    of MSP maintain records to support the fact that the MSP met the 
    proposed bone solids content requirement for MSP and the proposed bone 
    particle size requirement for this product. The majority of the 
    comments received in response to this requirement supported the 
    requirement. The commenters believed that establishments should 
    maintain records of bone solids content and bone particle size because 
    it assists in compliance and provides an incentive for good process 
    control. A number of commenters argued that mandatory recordkeeping for 
    bone particles would have operational costs associated with it, which 
    are proven to be unnecessary, particularly in light of the fact that 
    there is no food safety issue of concern.
        FSIS has reconsidered the need for establishments' keeping records 
    on bone solids content (measured as calcium) and bone particle size in 
    light of the comments that stated that a recordkeeping requirement was 
    unnecessary. The Agency wishes to be cooperative to ease burdens on 
    industry, in appropriate situations, and allow flexibility in the 
    manner in which requirements can be carried out, where it can do so and 
    still carry out its statutory missions to prevent the distribution of 
    adulterated and misbranded meat and poultry products. Consistent with 
    this effort, the Agency in its proposal for MSP did not require the 
    industry to either carry out any prescribed tests for bone solids 
    content or bone particle size of the MSP produced, or to carry out any 
    type or amount of sampling of the MSP produced. The agency has now 
    concluded that removal of the recordkeeping requirement for bone solids 
    content and bone particle size will appropriately allow producers even 
    more flexibility in meeting these requirements. FSIS, of course, 
    expects producers of MSP to comply with the bone solids content and 
    bone particle size requirements, and it will implement spot checks in 
    order to verify that such compliance is occurring by producers of MSP. 
    If during these spot checks, or during any other inspection or 
    compliance review, FSIS finds a problem, it believes, however, that any 
    records producers have maintained in regard to compliance with these 
    requirements, will be helpful to FSIS and, in turn, to the industry, in 
    evaluating the company's control of bone solids content and bone 
    particle size.
    B. Use Limitations and Restrictions
        Most of the commenters responding to the issue regarding 
    limitations on the use of MSP disagreed with the Agency's position that 
    limitations of use in products composed of whole muscle or of MSP made 
    from fowl are needed. The commenters believe that there should be no 
    limitations on use because there are no safety or health concerns 
    regarding MSP. They also believe that use levels of MSP should not be 
    restricted because the marketplace is a better judge of the quality of 
    poultry products that are composed of MSP than FSIS. However, two 
    commenters agreed in part with the proposed limitations. The two 
    commenters agreed that where a poultry product is required to be 
    prepared from a particular Kind or Kinds of poultry (e.g., chicken), 
    use of MSP of any other kind (e.g., mechanically separated turkey) 
    should not be permitted.
        FSIS also received 11 comments regarding the fluoride content of 
    MSP made from fowl and the use of MSP made from fowl in baby food. All 
    of the commenters disagreed with the proposed limitation on the use of 
    product made from fowl in baby foods because of potential health 
    implications associated with over-consumption of 
    
    [[Page 55975]]
    fluoride in infants' diets. One commenter stated that based on 
    discussions with baby food companies, a local children's dentist, 
    experts from Duke University Medical Center, the University of North 
    Carolina School of Dentistry, and the American Academy of Pediatrics, 
    there is not one known documented or suspected case of fluoride 
    problems related to chicken in baby food. Furthermore, the commenter 
    stated that these people had very encouraging remarks for the positive 
    effects that fluoride from all food sources has had on the overall 
    dental health of the children in our country.
        FSIS continues to believe that the use of MSP should be limited in 
    certain poultry products. In response to the commenters that said where 
    a poultry product is required to be prepared from a particular kind or 
    kinds of poultry (e.g., chicken), use of MSP of any other kind (e.g., 
    mechanically separated turkey) should not be permitted, FSIS agrees. 
    This provision assures that MSP made from a certain kind of poultry is 
    not used in a poultry product represented as containing ingredients 
    from a different kind or kinds of poultry, thus avoiding situations of 
    misbranding.
        The Agency however, agrees with comments on the proposed use 
    restrictions of MSP in processed products composed of whole poultry 
    muscle that suggested a restriction was unnecessary because the use of 
    MSP in a product formulation is an issue of product quality. The Agency 
    recognizes the increasing market popularity of convenient, ready-to-
    cook or ready-to-eat products that are composed of whole poultry muscle 
    to which a portion of MSP is added. MSP benefits the manufacture of 
    such products because it is batter-like and can be molded to form a 
    desired product shape, and fill voids or spaces to make product shapes 
    uniform. The level of use of MSP that is associated with these products 
    exceeds the level that is used for strictly binding muscle pieces 
    together--an allowance that was acknowledged in the proposal. The 
    presence of MSP will be declared in the ingredients statement according 
    to the requirements in this final rule. Therefore, regardless of the 
    level of MSP used, consumers will have the information necessary to 
    make an informed purchase decision.
        The Agency is also keenly aware that with the allowance for the 
    addition of MSP (and other highly comminuted boneless poultry products) 
    to products composed of whole poultry muscle there is presented an 
    issue regarding truthful and non-misleading product names. The names 
    for these products should also convey to the consumer that the product 
    is not composed of entirely intact, whole muscle, perhaps through the 
    use of a qualifying statement. It is expected that the names for 
    products composed of whole poultry muscle and portions of MSP, or other 
    boneless, comminuted poultry, would reflect this fact in their names to 
    make them truthful and accurate. The Agency will be assessing for 
    possible future policy development the broad issue of the appropriate 
    naming of products composed of MSP or other boneless poultry to convey 
    to consumers that they are not composed of intact, whole muscle, as may 
    be expected.
        FSIS agrees with the commenters views that there is no need for a 
    requirement that would impose restrictions based on the potential 
    fluoride contribution of MSP made from fowl (i.e., mature female 
    chickens). In the proposed rule, FSIS proposed restricting the use of 
    MSP made from fowl in baby, junior, and toddler foods, citing its 
    concern for the potential effect of fluorosis in the susceptible 
    population of babies, infants, and toddlers. MSP made from fowl has 
    higher amounts of fluoride because the bones of older female chickens 
    contain more fluoride than younger chickens. In the proposal, the 
    Agency cited the conclusions of the 1993 National Academy of Science's 
    (NAS) Subcommittee on Health Effects of Ingested Fluoride (NAS Fluoride 
    Report)\9\ which indicated that the most effective approach to 
    controlling the prevalence of dental fluorosis, without jeopardizing 
    the benefits of fluoride to oral health, is likely to come from more 
    judicious control of fluoride in foods, especially those items used by 
    young children. The Agency requested that commenters provide any 
    information that would either reaffirm or contradict the conclusions 
    reached in the 1979 health and safety report regarding fluoride.
    
        \9\This report is available for public review in the FSIS Docket 
    Clerk's office.
    ---------------------------------------------------------------------------
    
        After reviewing the information submitted by commenters, and 
    reevaluating the findings of the NAS Fluoride Report, FSIS no longer 
    has a concern regarding the potential effect of fluorosis. Most 
    noteworthy among the information FSIS considered in withdrawing the 
    proposed limitation on MSP from fowl are reports of the changing 
    sources of fluoride ingestion, the positive effects of increased 
    fluoride intake on reduction of dental caries in the 1990's, and the 
    decrease in the ingestion of fluoride from infant formulas since 1979. 
    Therefore, FSIS will not impose a restriction on the use of MSP from 
    fowl in baby, junior, or toddler foods. Because the Agency has 
    concluded that MSP made from fowl should not be restricted in baby 
    foods, there is no longer a need to require the labeling of MSP from 
    fowl, as ``mechanically separated chicken, made from fowl,'' as 
    proposed.
        In addition, in response to comments seeking clarification on the 
    uses of MSP, FSIS will not prohibit the use of MSP in cooked sausage 
    products, such as frankfurters, franks, furter, hot dogs, vienna, 
    bologna, garlic bologna, knockwurst, and similar products. The Agency 
    will permit MSP to be used alone or in combination with poultry meat in 
    cooked sausage products identified in 9 CFR 319.180, however, not in 
    excess of 15 percent of the total ingredients, not including water. 
    FSIS is amending 9 CFR 319.180 to allow for such use. FSIS 
    inadvertently omitted such a provision in the proposed regulations.
    C. Labeling
        Commenters had varying opinions regarding the labeling of poultry 
    product produced by mechanical separation as ``MSP.'' Of the 14 
    commenters responding to this issue, three stated that poultry product 
    produced by mechanical separation should be labeled as ``mechanically 
    separated (chicken, turkey, or other kind of poultry) with skin,'' 
    because consumers have a ``right-to-know'' that skin and other ``by-
    products'' are present. Two stated that MSP should be listed in the 
    ingredients statement on a product's label. Other commenters also 
    suggested that there should be full disclosure of all ``ingredients'' 
    resulting from the mechanical deboning process, including bone 
    particles, marrow, kidneys, sex glands and lungs. Another commenter 
    disagreed with the Agency's proposed requirement to label MSP from fowl 
    as such.
        In response to comments that stated that MSP should be labeled to 
    reflect the presence of skin, skin is a naturally existing edible 
    component of poultry. Consumers have historically accepted and 
    purchased whole poultry carcasses (e.g., ``basted young turkey'') and 
    parts of carcasses (e.g., ``chicken drumsticks'') with skin, as well as 
    cooked poultry products, e.g., fried chicken, without the presence of 
    skin being specifically reflected on the product's label. FSIS believes 
    that the presence of skin should be labeled only when it is present in 
    excess of natural proportions because this would be a condition in 
    conflict with what a consumer expects poultry to be. If skin is added 
    to a product and 
    
    [[Page 55976]]
    is present in an amount that exceeds that found naturally on the 
    carcass or the part of a carcass according to the figures presented in 
    the regulations (9 CFR 381.117(d)), the label must reflect the presence 
    of skin. FSIS has determined that the name of the product (e.g., 
    ``Mechanically Separated (Kind of Poultry) (MSP))'' must be followed 
    immediately by the phrase ``with excess skin'' unless it is made from 
    poultry product that does not include skin in excess of the natural 
    proportion present on the whole carcass, as presented in the 
    regulations.
        Furthermore, there must be appropriate descriptive terminology on 
    the labeling of MSP (with or without skin in excess of natural 
    proportions) if heat treatment has been used in the preparation of such 
    product, e.g., ``cooked mechanically separated (kind of poultry).'' 
    Because cooking would affect the use of MSP, FSIS is requiring that 
    such characteristic be clearly identified on the label when MSP leaves 
    the establishment at which it is manufactured. The poultry products 
    inspection regulations already require that information on use, 
    including deviations from the natural whole carcass proportion of skin 
    as well as the fact of cooking, appear on the label of boneless poultry 
    products produced by mechanical separation (9 CFR 381.117 (d)). The 
    presence of skin or its presence in excess of the natural whole carcass 
    proportion would continue to affect product use if the regulations are 
    amended. The use of heat treatment in the preparation of the product 
    also would be of continuing relevance (9 CFR 381.157(a)). FSIS is 
    requiring the labeling for excess skin in MSP and for heat treatment of 
    MSP in order to assure consistency with regulatory requirements in 9 
    CFR 381.117 (d) for boneless poultry products and, thereby, to prevent 
    the adulteration and misbranding of finished poultry products and meat 
    food products.
        In response to other comments on the need for disclosure of the 
    potential constituents of the starting materials from which MSP results 
    (i.e., bones with muscle tissue and other edible tissue, with or 
    without skin), FSIS has certain regulatory requirements in this final 
    rule or currently in the regulations that address bone particles, 
    kidneys, sex glands, and lungs that negate the need for specific 
    labeling of these constituents.
        This final rule will continue the current limit of 1 percent bone 
    solids (measured as calcium) that has been applied to all boneless 
    poultry products since 1969. The size of bone particles has been 
    limited by this final rule as a process control criterion to ensure 
    that the process of mechanical separation is operating in accord with 
    good manufacturing practices. There are no health or safety issues 
    concerning the bone content or bone particle size criteria being 
    established by this rule. Furthermore, the requirement that processed 
    poultry (and meat food) products bear nutrition labeling that includes 
    a calcium declaration in the Nutrition Facts panel will provide 
    meaningful information to consumers who wish to monitor their calcium 
    intake and will reflect the calcium contributed to a product from bone. 
    For these reasons, specific labeling that addresses the presence of 
    bone and bone particles is not necessary.
        In regard to the comments on the need to label the presence of bone 
    marrow, no factual basis was provided that would justify such labeling. 
    As explained below, the Agency believes such labeling is unnecessary 
    due to the extremely small amount of marrow that is potentially 
    present, the composition of marrow, the lack of any health or safety 
    concerns about bone marrow from poultry bones, and the role of 
    nutritional labeling in disclosing any potential nutritional impact 
    from the presence of bone marrow in a product. Discussions with poultry 
    scientists, physiologists and geneticists at a variety of universities 
    and research organizations support this conclusion. Based on the 
    limited available data and the discussions with these experts, the 
    following response to the comments on the need for labeling bone marrow 
    in MSP is offered.
        Most of the ready-to-cook poultry marketed today are raw, uncooked 
    young poultry carcasses. The bones with attached edible tissue of this 
    class of poultry represent the bulk of the starting materials from 
    which MSP is produced. Young chickens, i.e., broilers, are typically 
    less than 7 weeks of age (although the poultry products inspection 
    regulations, 9 CFR 381.170, define them as being under 13 weeks). Young 
    turkeys are typically less than 8 months of age according to the 
    poultry products inspection regulations (9 CFR 381.170). The young age 
    at which these birds are marketed does not provide time for the 
    production of substantial bone content and, thus, bones from such 
    poultry would not contain much marrow. Moreover, the physiology of 
    poultry is such that, in order for the birds to fly, their bones cannot 
    be dense with tissue and most of the bones could be categorized as 
    being composed mostly of air with minimal tissue (marrow) content. In 
    fact, references10 indicate that the bones of most birds are 
    porous; many are filled with air, not marrow, and are connected to the 
    respiratory organs. The bones with some marrow are mostly the larger 
    ones, e.g., the leg bones, and are involved in blood production, the 
    function of ``marrow.'' In actuality, the bone marrow represents part 
    of the bird's vascular system.
    
        \10\Terres, J.K., 1991. The Audubon Society Encyclopedia of 
    North American Birds, Wings Books, New York. A copy of this 
    reference is available for review in the FSIS Docket Clerk's office.
    ---------------------------------------------------------------------------
    
        Information on the actual amount of marrow in poultry bones is 
    lacking. According to the 1979 report entitled ``Health and Safety 
    Aspects of the Use of Mechanically Deboned Poultry,'' marrow content 
    varies in amount with age of the bird, and varies between different 
    bones from the same bird. Determining the actual amount of marrow is 
    difficult because it is difficult to separate marrow from the inner 
    surfaces of bones, and to determine what proportion of the separated 
    tissue is actually ``marrow.'' Moreover, because bone marrow is 
    composed of fat, heme pigments, blood cells, and other constituents 
    normally found in the edible tissue of poultry, it would be difficult 
    to distinguish it from the other edible tissue comprising MSP to 
    determine the minimal amount that may actually be contributed to MSP.
        However, with regard to the minimal contribution of bone marrow to 
    MSP that may be possible, it has not been reported to be a health or 
    safety concern. The 1979 Report, the most comprehensive review of MSP 
    to-date, is reliable today as an information source because the basic 
    composition of poultry that would be the starting materials for MSP has 
    not changed since the report was prepared. The 1979 Report made no 
    recommendations regarding the presence of marrow and the need for 
    specifically labeling bone marrow.
        Therefore, because it has been estimated that there would be an 
    extremely small marrow constituent in MSP, so small and so similar in 
    composition to other components of MSP that it would be difficult to 
    quantify it, and that there are no known health or safety issues with 
    regard to bone marrow, there is no basis for the specific labeling of 
    bone marrow in MSP. If data on the quantity of bone marrow in MSP 
    become available at some point in the future that would present a basis 
    to reconsider this position, the Agency would certainly reconsider it. 
    
    [[Page 55977]]
    
        The 1979 Report did, however, suggest that bone marrow is a 
    potential source of cholesterol in MSP, in addition to that contributed 
    by skin and muscle tissue. The 1979 Report recommended that because of 
    the potential contribution of cholesterol in MSP to foods, which may be 
    of importance to people who have the hereditary condition known as 
    hypercholesterolemia, it is desirable to identify products that contain 
    MSP. This final rule requires that the MSP in a product be labeled and, 
    thus, the recommendation of the 1979 Report has been accepted. More 
    importantly, recent regulations on nutrition labeling address the issue 
    of the potential contribution of cholesterol to the diet from any food. 
    Thus, the potential minimal contribution of marrow to the cholesterol 
    content of a product would be reflected in the mandatory labeling of 
    cholesterol, which is reflected in the Nutrition Facts panel of a 
    product's labeling.
        As noted, raw, uncooked young poultry carcasses make up the 
    majority of the ready-to-cook poultry marketed today. Young poultry 
    carcasses are currently sold with kidneys and have been historically 
    sold in this manner. The presence of kidneys in young poultry does not 
    pose a health or safety concern because there are no constituents, 
    e.g., heavy metals, known to be present in these kidneys that are of 
    potential concern. Kidneys from young poultry can be present in the 
    poultry purchased at the supermarket and in the poultry products 
    consumed at retail fast food outlets.
        FSIS does, however, require the removal of kidneys of mature 
    turkeys and chickens from their carcasses before completion of the 
    eviscerating operations during the slaughtering process (9 CFR 
    381.65(d)). Kidneys of mature poultry pose a potential health concern 
    because of the possibility of the presence of certain constituents in 
    these organs, e.g., heavy metals, such as cadmium, which are deposited 
    in the kidneys of older birds over time.
        Since kidneys of young poultry pose no health or safety concern and 
    have been historically accepted in ready-to-cook poultry, there is no 
    basis to require specific labeling of these on a product's label. 
    Furthermore, since kidneys from mature poultry must be removed, there 
    is no basis for requiring labeling of kidneys from mature poultry.
        In response to comments on the presence of sex glands in MSP, 
    mature reproductive organs (or sex glands) are precluded from being 
    present in ready-to-cook poultry, i.e., poultry subsequent to the 
    slaughtering process, by the poultry products inspection regulations (9 
    CFR 381.1(b)(44)). Therefore, mature sex glands cannot be present as 
    part of the carcasses or parts of carcasses that are the starting 
    materials from which MSP is made. Mature male sex glands are, however, 
    marketed as an edible poultry product known as ``chicken or turkey 
    fries'' in various regions of the United States.
        There are no prohibitions on the presence of immature sex glands, 
    however, in poultry carcasses or parts of carcasses sold to the 
    consumer, or in ready-to-cook poultry used as starting materials for 
    MSP. Immature sex glands have historically been present in these 
    products because they are considered to be an indistinguishable part of 
    the edible tissue of poultry. The young age at which most chickens and 
    turkeys are marketed (as previously noted) does not provide ample time 
    for the development of reproductive organs, e.g., in chickens, sexual 
    maturity of the testes and ova does not begin until about 20 weeks of 
    age. At 6 or 7 weeks of age, the age at which most broilers (the source 
    of most starting materials for MSP) are marketed, the sex glands are 
    merely a thin membrane covering over undefined tissue which is no 
    different in biological or chemical function than other, edible tissue 
    of the carcass. At 6 or 7 weeks, the weight of the barely 
    distinguishable, inert tissue that will later become the sex glands has 
    been estimated to be less than a tenth of a percent of the weight of 
    the raw, uncooked broiler. There are no health or safety concerns 
    related to immature sex glands. Thus, because the tissue of immature 
    sex glands is virtually indistinguishable from other edible poultry 
    tissue and there are no health or safety concerns related to immature 
    sex glands, there is no need to require specific labeling of their 
    presence in a product.
        With regard to poultry lungs, poultry lungs must be removed during 
    the processing of ready-to-cook poultry. Lungs are not defined as part 
    of the edible portion of ready-to-cook poultry and must be removed 
    according to the poultry products inspection regulations (9 CFR 
    381.1(b)(44)). Therefore, specific labeling regarding the presence of 
    lungs is not needed, since lungs are removed before the starting 
    materials used for MSP are obtained.
        As noted, a comment was received on the need for the proposed 
    labeling requirement for MSP made from fowl. Because FSIS is not 
    restricting the use of MSP made from fowl, it is eliminating the 
    proposed labeling requirement which requires products made with 
    mechanically separated chicken from fowl to contain on the label the 
    phrase ``made from fowl'' after the product name (e.g., ``mechanically 
    separated chicken (made from fowl)).''
    D. Nutrition
        Although FSIS did not propose any specific requirements that 
    addressed nutrition, the Agency did receive several comments related to 
    ``Nutrition Facts'' and cholesterol. Fifteen commenters stated that the 
    ``Nutrition Facts'' on product labels is a reflection of the product 
    formula that will satisfy consumers concerning poultry product produced 
    by mechanical separation. Three other commenters stated that 
    cholesterol is not an issue in poultry product produced by mechanical 
    separation.
        FSIS recognizes that a recommendation in the 1979 Report was to 
    label products containing MSP with cholesterol content information. 
    This recommendation was based on the evaluation of cholesterol contents 
    of different MSP products that showed they were nearly double the 
    contents in hand-deboned poultry. However, it was stated that, based on 
    consumption estimates, daily increases in cholesterol consumption from 
    use of MSP would be negligible on a per capita basis, and would not 
    pose a health hazard for the general public. It was noted that, for a 
    small segment of the population which must limit their intake of 
    cholesterol for health reasons, foods containing MSP should be 
    specifically labeled to show its presence. However, specifically 
    labeling cholesterol on products containing MSP is not an issue because 
    the provisions of the nutrition labeling regulations (58 FR 632) 
    published by FSIS, which were effective July 6, 1994, would be a means 
    of educating consumers regarding certain nutrients and other components 
    of processed meat and poultry products produced by mechanical deboning, 
    including cholesterol.
    E. Safety Concern Regarding Poultry Products Produced by Mechanical 
    Separation
        FSIS received 1426 comments regarding the safety of poultry product 
    produced by mechanical separation. Fourteen hundred and twenty 
    commenters stated that there are no safety concerns regarding the use 
    of poultry product produced by mechanical separation. Some of the 
    commenters stated that there are no bone particles of a size that would 
    pose a health concern. Five of the commenters believe that Hazard 
    Analysis and Critical Control Point (HACCP) addresses the needs for 
    process controls that would be related to 
    
    [[Page 55978]]
    poultry product produced by mechanical separation. One commenter 
    suggested that the proposed rule has no conceivable relationship with 
    health or safety, and is a timely example of unnecessary regulation.
        In addition, one commenter stated that there are microbiological 
    concerns specific to poultry product produced by mechanical separation. 
    The commenter pointed out that the skin of poultry, including pin 
    feathers, feather particles, and hair are sources of potential 
    microbiological contamination.
        FSIS agrees with the commenters that there are no unique safety or 
    health concerns regarding the use of poultry products produced by 
    mechanical separation. Although the data reviewed in the 1979 Report 
    indicate that poultry products produced by mechanical separation 
    generally are acceptable from a microbiological standpoint, the data 
    also show that, where bacterial loads tend to be higher, it can be 
    attributed to the starting material used. This is not unique to poultry 
    products produced by mechanical separation; it can be applied to other 
    finely comminuted and comminuted products as well. FSIS is currently 
    developing a separate rulemaking on HACCP and pathogen reduction 
    efforts that will deal with this issue more fully for all poultry and 
    meat products, including poultry products produced by mechanical 
    separation, and the material from which they are manufactured.
    F. Economic and Market Impact
        FSIS received 1720 comments on the economic and market impact of 
    the proposed rule on industry. The comments fell into four general 
    categories: (1) The Agency's economic analysis was not sufficient; (2) 
    the new labeling requirement would reduce the demand for products 
    containing MSP; (3) the labeling costs are underestimated; and, (4) the 
    meat industry has been hurt by a similar labeling requirement. These 
    comments are presented and responded to below.
    Adequacy of the Agency's Analysis on Economic Impacts
        The Small Business Administration (SBA), citing many of the 
    industry objections to the proposed rule, advises that it does not 
    concur in the Administrator's conclusion that the proposed rule will 
    not have a ``significant economic impact on a substantial number of 
    small entities,'' and that, therefore, under the Regulatory Flexibility 
    Act, a more substantial economic analysis is required to support 
    continued rulemaking in this matter. SBA states its belief that further 
    analysis would reveal significant additional costs to industry and 
    disproportionate impacts on small entities, and would disclose other, 
    less burdensome regulatory options.
        Others made comments similar to those of the SBA, namely, that the 
    economic analysis of the proposed rule was inadequate and that the 
    proposal constitutes a major rule requiring a far more detailed 
    economic analysis prior to final rulemaking.
        Neither the SBA comment nor any other comment received provides 
    data or other evidence that would cause the Agency to alter its 
    estimate of the impacts outlined in the proposal or the economic 
    assumptions upon which they are based. No new evidence has been 
    provided that suggests that this rule will have a disproportionate, or 
    even a significant, economic impact on a substantial number of small 
    entities. Moreover, FSIS believes that the 12-month period prior to 
    implementation of the final rule and its requirements, including the 
    labeling requirements, will render the attendant costs to 
    manufacturers, including small businesses, negligible.
    Proposed Requirement Would Reduce Demand for Product
        Several commenters believe that the effect of the labeling 
    requirements will be a significant economic and market impact on 
    manufacturers of MSP and that the impact has not been adequately 
    considered by the Agency. It is their belief that this impact would 
    come from the fact that the new label would be unappealing to consumers 
    and would lead commenters to believe that the product is inferior to 
    what they are used to buying, or that something new has been added to 
    the product, or that the product has undergone other changes. This 
    confusion would, they believe, adversely affect demand for products 
    containing MSP.
        One commenter indicated that many manufacturers may choose to avoid 
    the misleading connotations of the proposed labeling and reformulate 
    their products with other, more costly ingredients. The commenter 
    further stated that if only 25 percent of the usage of this ingredient 
    were curtailed on this basis, net costs to consumers from such 
    manufacturing decisions would exceed $134 million dollars per year.
        Another commenter provided the information that the current market 
    price quotes for raw comminuted turkey meat (frozen, 20% skin) are less 
    than current price quotes for hand-deboned breast and scapula trim meat 
    and boneless, skinless thighs by about $0.50/lb. to $1.00/lb., in order 
    to illustrate that reduced purchases due to the proposed labeling would 
    force industry to use higher cost ingredients such as hand-deboned and 
    boneless meats and that such costs would be directly passed on to the 
    consumer.
        Another commenter raised the same issue, indicating that companies 
    that are apprehensive about the labeling change and that fear that 
    their brands will be damaged by the potential negative connotation will 
    reformulate products with higher cost materials. According to this 
    commenter, reformulation will have the effect of increasing the cost of 
    raw materials for both poultry and red meat, ultimately raising the 
    consumer's cost to purchase these products. The commenter stated that 
    the proposal did not address the cost of replacement raw materials and 
    the effect on the raw materials market and believes that if these 
    factors were included in the economic impact, the cost would be between 
    $150 and $200 million.
        FSIS has not acquired any reliable data to support the assertion 
    that this rule's labeling requirements will adversely affect the demand 
    for products containing MSP. FSIS believes, however, that if the rule's 
    labeling requirements do reduce demand to some extent for the product 
    or products containing MSP, then it is difficult to draw any conclusion 
    other than that the consumer has been misled by the absence of such 
    labeling.
        The primary objective of the Agency's labeling authority is to 
    facilitate informed purchasing decisions. If, as a result of labeling 
    requirements, some consumers will not want the products such evidence 
    would strongly suggest that such labeling is needed. It is the 
    responsibility of FSIS to help ensure that labeling is not deceptive or 
    misleading, and it would be contrary to the Agency's statutory 
    objectives to permit misleading labeling.
        The Agency does not believe, however, that it is likely that 
    consumers will face less choice in the market and be forced to buy 
    similar products with higher-cost ingredients because of this rule. In 
    an industry as competitive as the poultry industry, the products 
    demanded by the consumer will be produced. Price is an important factor 
    in selling products, and consumers are unlikely to abandon a popularly-
    priced, high-quality product which they have found to be satisfactory 
    simply because it has a more informative label. Further, if some 
    consumers shift to their purchases to higher-priced products, it is 
    difficult to see why this would not be a favorable outcome for both the 
    consumer and the industry. The Agency 
    
    [[Page 55979]]
    believes that the poultry industry is a mature and sophisticated 
    industry that is capable of producing and marketing any array of 
    products for which there is a demand, and that this rule will not 
    restrict or hamper the industry's ability to meet the needs and desires 
    of its customers.
    The Red Meat Experience With Similar Labeling
        One commenter stated that the meat industry's experience in a 
    comparable regulatory situation strongly, if not conclusively, suggests 
    that assumptions made in the economic analysis are invalid.
        The Agency assumes this commenter is referring to the widely held 
    belief that product labeled as ``Mechanically Separated (Species),'' 
    here referred to as MSM, has not been a highly profitable undertaking 
    for the red meat industry. The Agency has no data to confirm or refute 
    this proposition. It does believe, however, that the red meat and the 
    poultry situations are not comparable from an economic point of view.
        The red meat industry never had an established market for MSM, and 
    it would be difficult to attribute the asserted lack of success to the 
    required label rather than to the decision not to try and build that 
    market. Further, it is not obvious that the MSM label is solely 
    responsible for the decision not to try to build the market. Numerous 
    other factors, particularly the marketing expense of launching new 
    products with an unknown demand, could have been a determining factor 
    in the decision not to try to build a new market for MSM products.
        The poultry industry, on the other hand, has established markets 
    and satisfied consumers for products that have always been made with 
    MSP. Its position is, therefore, not comparable to that of the red meat 
    industry which would have to take a chance on new products with an 
    unknown consumer reception.
    Labeling Costs
        One commenter stated that his company would have more than 250 
    labels affected by this rule. The company believes that it will cost a 
    minimum of $1,000 for each label change, which includes internal 
    management time, printing costs, and obsolete label inventory.
        The cost of labeling changes can be significantly reduced by 
    allowing companies to use up their old stocks, which the rule has 
    provided for by making the rule not effective until one year from its 
    publication date.
    G. Finished Poultry Products and Meat Food Products
        Several commenters disagreed with the Agency's proposed position to 
    regulate MSP as a distinctive ingredient with standardized 
    characteristics that is defined by its own name, e.g., ``Mechanically 
    Separated (Kind of Poultry)'' which must be declared in the ingredients 
    statement of finished product labels. One commenter noted that the 
    Agency has provided no evidence of salient differences between what 
    they refer to as ``finely ground poultry'' and hand-deboned poultry to 
    suggest that mechanically separated poultry should be regulated as 
    proposed. The commenter further stated that the Agency has provided no 
    legitimate reasons for treating mechanically separated poultry and MSM 
    similarly and for regulating the final products based on the process 
    used to make them. The commenter noted that the poultry industry uses 
    raw materials containing greater proportions of meat and produces a 
    product much lower in bone content, which is analytically similar to 
    whole muscle cuts from the same species.
        In addition, another commenter suggested that since calcium and 
    cholesterol nutrition information is fully disclosed in the Nutrition 
    Facts panel, which is a reflection of the product formula, the term 
    ``mechanically separated'' is not needed in the ingredients statement.
        FSIS believes that such a labeling requirement is necessary to 
    fulfill its statutory responsibility to protect consumers by assuring 
    that the labels of finished poultry products and meat food products are 
    accurate. MSP is materially different in form and texture as compared 
    to hand-deboned poultry, and this is a direct result of the mechanical 
    separation process and the types of starting materials used to make 
    MSP. MSM is a similar red meat product, resulting from a similar 
    process. FSIS has concluded that MSP should be defined by its own name, 
    i.e., ``Mechanically Separated (Kind of Poultry),'' and should be 
    declared in the ingredients statements on finished product labels.
        The starting materials used to make MSP may vary in the amount of 
    edible tissue remaining on the poultry bones after hand-deboning, but 
    the variance is minimal because a substantial portion of the muscle and 
    other edible tissues has already been removed by hand-deboning methods. 
    That a significant amount of muscle remains on the bones is not likely 
    because the process of mechanical separation for both poultry and 
    livestock has been designed to salvage the tissue left on the bones to 
    produce a wholesome, low-cost, and functional poultry product. The 
    comparison made by a commenter regarding the amount of tissue on 
    starting materials for making MSP and materials used to make MSM is 
    irrelevant. It is the fact that the process starts with bones on which 
    a minimal amount of tissue remains and that both processes are designed 
    to salvage muscle and other edible tissues, and both processes result 
    in a paste-like and batter-like product in terms of form and 
    consistency, that warrant their distinct declaration.
    H. Ergonomic Impact
        FSIS received several comments regarding the ergonomic impact of 
    this rule. According to the commenters, mechanical deboning systems 
    have substantially lowered the risk of cumulative trauma disorders 
    (CTD) resulting from repetitive hand, arm, and wrist motions. However, 
    the commenters indicated that industry may be forced to use more hand-
    deboned products in lieu of this wholesome mechanically separated 
    product due to this rule. The commenters believe the rule negatively 
    impacts the industry's ability to use mechanical deboning and other 
    ``mechanical'' means in harvesting meat from turkey and chicken parts 
    and carcasses. They indicated this is because the labeling requirements 
    will diminish sales and production of products containing MSP and make 
    the industry revert to using hand-deboned poultry.
        FSIS agrees that it is likely that mechanical separation systems 
    have substantially lowered the risk of cumulative trauma disorders, 
    although there were no data supplied to document this conclusion. 
    However, FSIS does not agree with the assertion that this rule will 
    force industry to use more hand-deboned products, in lieu of 
    mechanically separated product, because of the requirement that use of 
    MSP in a product be separately reflected in a product's ingredients 
    statement. This assertion appears to be based on the assumption that it 
    would be economically feasible to hand debone the materials from which 
    MSP is made. However, FSIS does not believe that it would be 
    economically feasible for the industry to hand debone, as opposed to 
    mechanically separate, the bits and pieces of poultry that remain on 
    poultry carcasses, and parts of carcasses from which mechanically 
    separated product is obtained. 
    
    [[Page 55980]]
    
    I. Miscellaneous
        FSIS received other miscellaneous comments which addressed the 
    following issues: (1) use of MSP in the manufacture of a flavoring 
    should not require a separate and distinct listing of MSP as an 
    ingredient of the flavoring in the ingredients statement of the product 
    in which it is used, (2) an extension of the comment period for 30 days 
    should be granted, and (3) industry should be given sufficient time to 
    use up most of its printed labels before the final rule's new labeling 
    requirements become effective.
        FSIS is familiar with the issue raised by the commenters that MSP 
    is frequently used as a protein source for ``reaction'' (or process) 
    flavors produced under the jurisdiction of the Food and Drug 
    Administration (FDA) and may currently be labeled as ``(kind) flavor'' 
    according to the guidelines on reaction flavors established by the 
    Agency. FSIS does not intend to change these policies because the 
    chemical reactions involved in manufacturing process flavors involves 
    the removal of the soluble flavoring components of the poultry 
    ingredients and does not include the solid portion of the poultry 
    ingredients.
        At the request of commenters, FSIS extended the comment period for 
    the proposed rule an additional 30 days to March 6, 1995. FSIS 
    considered these requests to have additional time to study and develop 
    information relating to the proposal to be reasonable. Also, as 
    discussed previously, FSIS has made its final rule effective one year 
    from its date of publication, which should allow ample time to use up 
    label stocks.
    
    Executive Order 12866
    
        This final rule has been determined to be significant and has been 
    reviewed by the Office of Management and Budget under Executive Order 
    12866.
        Total federally inspected broiler and turkey meat production in the 
    United States in 1993 was about 27 billion pounds on a ready-to-cook 
    basis (i.e., subsequent to the slaughtering step in processing). 
    (Broilers represent the majority of chickens grown and slaughtered in 
    the U.S.) Broiler production was 22.2 billion pounds and turkey 4.8 
    billion pounds. Continued growth in poultry production has resulted in 
    large increases in the volume of poultry meat going into further 
    processed products such as bologna, hot dogs, fritters, patties, and 
    luncheon meats, many of which use MSP. FSIS has estimated that 1 
    billion pounds of poultry product is processed annually into MSP, with 
    a yield of 70%, or 700 million pounds of MSP product for human use. 
    (Industry sources suggest that a larger amount of MSP product is 
    produced annually.) FSIS estimated that 400 million pounds are used in 
    sausage products and 300 million pounds in patties and nuggets. In any 
    case, size of the market does not directly affect the cost of this rule 
    (see below).
        The Broiler Council estimates that broiler meat is produced in 
    about 200 establishments, of which 50 are further processing 
    establishments. MSP is produced in about 108 establishments. About 25-
    30 of these establishments with MSP equipment produce hot dogs. The 
    product from the other 75-80 establishments is sold to establishments 
    that further process poultry or to red meat processors. Industry 
    sources indicate that some small firms specialize in MSP production, 
    buying carcasses from poultry slaughter establishments for further 
    processing.
        Based on inspection task records, FSIS estimated that 108 
    establishments produce (or are capable of producing) MSP. An assessment 
    of MSP production by establishment size is not available. However, 
    total further processed product production by size of establishments 
    shows 7 establishments with production less than 10,000 pounds of MSP 
    annually. The average production of the 108 establishments is 51 
    million pounds of all further processed products.
        Under this rule, products containing mechanically separated poultry 
    are required to separately label ``Mechanically Separated (Kind of 
    Poultry)'' in the list of ingredients. There is no precise information 
    on the total number of products that currently contain MSP because MSP 
    may appear simply as ``chicken'' or ``turkey'' in product formulations 
    in which it is an ingredient. However, an estimate of the number of 
    products containing MSP can be made by estimating the number of labels 
    for MSP and for categories of products to which it is frequently added. 
    These estimates were made by using the database of label information 
    that is maintained by FSIS' Food Labeling Division, as part of the 
    Agency's prior label approval system. There are 602,000 approved labels 
    for poultry and meat, not all of which are necessarily in use. These 
    include 529 labels for MSP itself. There is also an unknown number of 
    labels for products containing MSP, such as frankfurters, chili, 
    bologna, poultry baby foods, chicken nuggets or patties. FSIS estimates 
    that, in total, about 5,000 products would require relabeling. There is 
    no currently available data on the size breakdown of the establishments 
    producing products containing MSP.
    
    Costs and Benefits of the Rule
    
        Analysis of the economic impact of a rule requires consideration of 
    all significant costs and benefits.
    
    Benefits
    
        The benefits are the values consumers place on the ability to make 
    a more informed purchase based on more accurate labeling. Informed 
    purchases, which in this case result from accurate labeling, are an 
    essential principle of the free market in which meat and poultry 
    products trade and one of the principal justifications for the 
    regulation of labels. FSIS has a statutory mandate to avoid false and 
    misleading labeling. Therefore, if, as the Agency has determined here, 
    a label is misleading or false, the Agency has a responsibility to 
    correct that situation.
        As discussed earlier in the preamble to this rule, several 
    commenters suggested that the labeling requirements of the rule would 
    adversely affect demand for products made with MSP. FSIS has not 
    acquired any data that can be used to estimate the impact this rule 
    will have on the demand for MSP. However, the Agency's experience is 
    that consumers do distinguish between muscle meat and more finely 
    comminuted product. It is also apparent that there are texture 
    differences in these two types of products. The public comments on this 
    action have reinforced this belief. Many commenters have stated that 
    they believe consumers will not buy the product if it is labeled under 
    the new requirement. Further, the producers of a similar red meat 
    product, which already requires labeling of the type promulgated by 
    this rule, claim that the required labeling keeps the public from 
    buying their product. The Agency has not quantified the magnitude of 
    change in consumer demand under the present rule, but it does recognize 
    that these comments demonstrate there is widespread recognition that 
    comminuted product could be viewed less favorably than muscle meat by 
    the consumer.
        Furthermore, as also discussed earlier in the preamble to this 
    rule, the Agency has concluded that use of the term ``mechanically 
    separated'' truthfully describes the nature of the product and that 
    purchases of MSP using this label will accurately reflect the real 
    value placed on it by consumers.
        As a result of the current labeling practices, consumers are being 
    misled and are possibly consuming more MSP than they otherwise would if 
    they had better information. The extent to which 
    
    [[Page 55981]]
    consumers reduce their demand for this product as a result of the 
    labeling change will reflect the level to which consumers have been 
    misled. The increased value placed by consumers on inaccurately labeled 
    MSP products represents a welfare loss to consumers and society. The 
    misdirected purchasing power placed on inaccurately labeled MSP 
    products could be used to purchase other products of higher value to 
    consumers. The greater the change value placed on this product by 
    consumers, the greater the benefits of the rule. Revenue losses 
    producers experience due to this shift in consumer demand are not 
    social welfare losses, but instead represent resources misallocated 
    toward the excess production of products containing MSP. To the extent 
    that market prices for products containing MSP decline in response to 
    shifts in consumer demand, losses experienced by producers represent 
    gains to consumers and, thus, are in fact transfer payments from 
    producers to consumers.
        Taking into account consumer experience with MSP leads the Agency 
    to believe that any change in consumer behavior will be negligible, and 
    FSIS has not acquired any data to show any negative impact on poultry 
    or poultry products made with MSP. The Agency also believes that MSP 
    should continue to be a wholesome and safe low-cost source of protein 
    with nutritional attributes comparable to ``chicken'' or ``turkey.'' As 
    discussed earlier, MSP has certain desirable attributes that will 
    ensure its continued use as an ingredient in many products.
    
    Costs
    
        The Agency recognizes that it has a responsibility to keep the cost 
    impact of this rule to a minimum to keep the burden of regulation as 
    low as possible on the industry. It has done this by giving sufficient 
    time for most businesses to use up their inventory of labels, thus 
    substantially reducing the cost associated with the rule.
        Possible sources of costs associated with the rule include the 
    following items:
    A. Labeling Changes and Inventory
        Under the final rule, finished products containing mechanically 
    separated poultry are required to have ingredient statement labeling of 
    the mechanically separated poultry as ``Mechanically Separated (Kind of 
    Poultry).'' As reported in the proposed rule, estimates range from $200 
    to $3,000 per product for a simple product ingredient statement label 
    change depending on the type of label. Comments in response to the 
    March 1994 ANPR indicate that changes to the ingredients statement of 
    most labels to which the final rule will apply would fall in the lower 
    end of this range (about $600). FSIS previously reported in the 
    proposal that, assuming an average cost of $1,000 per product, the cost 
    of relabeling would be $5 million ($1,000 times 5,000 products). These 
    estimated costs that were reported in the proposed rule assumed a 
    typical 30-day effective date for implementation of the final rule and 
    its requirements.
        However, by establishing the one-year period from publication to 
    the effective date for implementation of the final rule, labeling costs 
    would be substantially reduced. The cost of relabeling would be 
    negligible because the mandated MSP label changes can be coordinated 
    with other label changes planned or required during the year-long 
    period prior to the effective date of the MSP rule. Many firms 
    routinely make label changes for existing products. For example, about 
    50% of the 180,000 labels submitted to FSIS each year for approval are 
    for label changes on existing products. These label changes are made 
    for various reasons that reflect the kinetic nature of the food 
    industry and, in particular, the fast-paced research and development of 
    new and modified meat and poultry products, e.g., changes to 
    incorporate less costly, new, or more effective ingredients that extend 
    shelf-life, improve taste or texture, or replace fat; changes to add 
    recipes or consumer purchase incentives to labeling; changes to make 
    new or different claims about a product's nutrient content or 
    performance; changes to alter features such as net weight or logos; or 
    changes to modify the color or size of print. These new MSP labeling 
    requirements, therefore, can be worked in with other routine label 
    changes. The modest costs associated with the MSP labeling change are 
    nonetheless necessary to assure that consumers receive meat and poultry 
    products with informative and nonmisleading ingredients statements.
        Some firms may discard non-compliant labels when the final rule 
    goes into effect. A survey of meat and poultry companies for the 
    nutritional labeling rule indicated that firms carry an average label 
    inventory of 5 to 6 months. Knowing this, FSIS established a 12-month 
    period to allow ample time for an orderly transition to the new 
    requirements of the rule, including the labeling requirements, and to 
    assure that manufacturers of MSP, and of poultry and meat food products 
    in which MSP is used as an ingredient, have ample time to exhaust 
    current label stock. Therefore, it is not anticipated that 
    manufacturers will have to dispose of label inventories that were 
    printed or ordered for printing prior to publication of the rule. Thus, 
    with the 12-month compliance period, inventory losses, if any, would be 
    minor.
    B. Bone Particle Size
        A new requirement limits maximum bone particle size. FSIS believes 
    bone particle size will not have a significant effect on actual 
    production and is a measure that augments the current requirement of 
    one percent or less bone solids to show that the process of separating 
    bone from meat is operating effectively. As previously stated, FSIS did 
    not in its proposal, nor is it in this final rule, requirement testing 
    or sampling for bone particle size in MSP. The Agency has concluded 
    that manufacturers should have the flexibility to decide how best to 
    assure compliance with the bone particle size requirement.
        Furthermore, the Agency agreed with commenters, as stated 
    previously, that the requirements for keeping records on bone particle 
    size (and bone solids) should not be mandated and, in this respect, 
    will permit flexibility in meeting the rule's requirements. Thus, 
    additional potential costs have been eliminated.
    C. Other Costs
        The Agency does not agree with the view presented by many 
    commenters that any reduction in income from the reduction of 
    consumption of MSP product labeled under the new requirement should be 
    considered a cost of this rule. To the extent that purchasers reduce 
    their consumption of MSP products because of the new labeling, the 
    revenue received by the industry from such purchases is really revenue 
    derived rom an inaccurate and misleading label, and are not properly 
    considered as costs attributable to this rule given the statutory 
    mandate.
    
    Executive Order 12778
    
        This final rule has been reviewed under Executive Order 12778, 
    Civil Justice Reform. States and local jurisdictions are preempted 
    under the Federal Meat Inspection Act (FMIA) and the Poultry Products 
    Inspection Act (PPIA) from imposing with respect to the premises, 
    facilities, and operations of federally inspected establishments any 
    requirements that are in addition to, or different than, those imposed 
    under the FMIA or PPIA. States and local jurisdictions may, however, 
    impose recordkeeping and other requirements within the scope of section 
    202 of the 
    
    [[Page 55982]]
    FMIA and section 11 of the PPIA, if consistent therewith, with respect 
    to any such federally inspected establishment. States and local 
    jurisdictions are also preempted under the FMIA and the PPIA from 
    imposing any marking, labeling, packaging, or ingredient requirements 
    on federally inspected meat and poultry products that are in addition 
    to, or different than, those imposed under the FMIA and PPIA. States 
    and local jurisdictions may, however, exercise concurrent jurisdiction 
    over meat and poultry products that are outside official establishments 
    for the purpose of preventing the distribution of meat and poultry 
    products that are misbranded or adulterated under the FMIA or PPIA, or, 
    in the case of imported articles, which are not at such an 
    establishment, after their entry into the United States. Under the FMIA 
    and PPIA, States that maintain meat and poultry inspection programs 
    must impose requirements that are at least equal to those required 
    under the FMIA and PPIA. The States may, however, impose more stringent 
    requirements on such State inspected products and establishments.
        No retroactive effect will be given to this final rule. The 
    administrative procedures specified in 9 CFR 306.5 and 381.35 must be 
    exhausted prior to any judicial challenge to the provisions of this 
    final rule, if the challenge involves any decision of a program 
    official. The administrative procedures specified in 9 CFR parts 335 
    and 381, subpart W, must be exhausted prior to any judicial challenge 
    to the application of the provisions of this rule with respect to 
    labeling decisions.
    
    Effect on Small Entities
    
        The Administrator has determined that this final rule will not have 
    a significant economic impact on a substantial number of small 
    entities, as defined by the Regulatory Flexibility Act (5 U.S.C. 601). 
    Because the implementation date for this final rule provides ample time 
    for transition to the new requirements, including the labeling 
    requirements, producers with smaller lot size than large producers will 
    not have higher compliance costs per pound of product because of 
    relabeling costs attributable to the rule. By establishing the one-year 
    effective date for implementation of the final rule, new labeling costs 
    will be substantially reduced. The cost of relabeling would be 
    negligible because the mandated MSP label changes can be coordinated 
    with other label changes planned or required during the year-long 
    period prior to the effective date and implementation of this rule.
    
    Paperwork Requirements
    
        This final rule will allow establishments to voluntarily maintain 
    records of bone solids content and bone particle size as a measure of 
    process control. FSIS will allow manufacturers flexibility to determine 
    the best methods for compliance with these requirements, provided such 
    procedures and methods are in accord with good manufacturing practices.
        This final rule will also require labels of poultry products 
    produced by mechanical separation (i.e., products currently termed 
    mechanically deboned poultry or MDP) or products containing this 
    ingredient to be revised to include in the ingredients statements the 
    term ``Mechanically Separated (Kind of Poultry)'' and be submitted to 
    FSIS for approval. However, by providing a one-year period between 
    publication of this rule and the effective date for implementation, 
    labeling costs will be substantially reduced. The cost of relabeling 
    would be negligible because the mandated MSP label changes can be 
    coordinated with other label changes planned or required to meet other 
    regulatory tenets during the year-long period of promulgation of the 
    MSP rule and its enforcement.
        The paperwork requirements contained in this final rule have been 
    approved by the Office of Management and Budget under control number 
    0583-0101.
    
    List of Subjects
    
    9 CFR Part 318
    
        Meat inspection.
    
    9 CFR Part 319
    
        Meat inspection, Standards of identity
    
    9 CFR Part 381
    
        Food labeling, Poultry and poultry products, Standards of identity.
    
    Final Rule
    
        For the reasons set forth in the preamble, FSIS is amending 9 CFR 
    parts 318, 319, and 381 of the Federal meat and poultry inspection 
    regulations as follows:
    
    PART 318--ENTRY INTO OFFICIAL ESTABLISHMENTS: REINSPECTION AND 
    PREPARATION OF PRODUCTS
    
        1. The authority citation for part 318 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 138f; 7 U.S.C. 450, 1901-1906; 21 U.S.C. 
    601-695; 7 CFR 2.17, 2.55.
    
        2. Section 318.6 is amended by adding a new paragraph (b)(13) to 
    read as follows:
    
    
    Sec. 318.6  Requirements concerning ingredients and other articles used 
    in preparation of products.
    
    * * * * *
        (b) * * *
        (13) Use of ``Mechanically Separated (Kind of Poultry),'' as 
    defined in Sec. 381.173 of this chapter, in the preparation of meat 
    food products shall accord with Sec. 381.174 and all other applicable 
    provisions of this subchapter.
    
    PART 319--DEFINITIONS AND STANDARDS OF IDENTITY OR COMPOSITION
    
        3. The authority citation for part 319 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 450, 1901-1906; 21 U.S.C. 601-695; 7 CFR 
    2.17, 2.55.
    
        4. Section 319.180 is amended by revising the sixth sentence of 
    paragraph (a) and the seventh sentence of paragraph (b).
    
    
    Sec. 319.180  Frankfurter, frank, furter, hot dog, weiner, vienna, 
    bologna, garlic bologna, knockwurst, and similar products.
    
        (a) * * *. Such products may contain raw or cooked poultry meat 
    and/or Mechanically Separated (Kind of Poultry) without skin and 
    without kidneys and sex glands used in accordance with Sec. 381.174, 
    not in excess of 15 percent of the total ingredients, excluding water, 
    in the sausage, and Mechanically Separated (Species) used in accordance 
    with Sec. 319.6. * * *
        (b) * * *. These sausage products may contain poultry products and/
    or Mechanically Separated (Kind of Poultry) used in accordance with 
    Sec. 381.174, individually or in combination, not in excess of 15 
    percent of the total ingredients, excluding water, in the sausage, and 
    may contain Mechanically Separated (Species) used in accordance with 
    Sec. 319.6. * * *.
    * * * * *
    
    PART 381--POULTRY PRODUCTS INSPECTION REGULATIONS
    
        3. The authority citation for part 381 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 138F; 7 U.S.C. 450; 21 U.S.C. 451-470; 7 CFR 
    2.17, 2.55.
    
        4. Section 381.15 is amended by revising paragraphs (a)(1), (a)(2), 
    (b)(2), and (c)(1) to read as follows:
    
    
    Sec. 381.15  Exemption from definition of ``poultry product'' of 
    certain human food products containing poultry.
    
    * * * * *
        (a) * * *
        (1) It contains less than 2 percent cooked poultry meat (deboned 
    white or dark poultry meat, or both) and/or 
    
    [[Page 55983]]
    ``Mechanically Separated (Kind of Poultry)'' as defined in 
    Sec. 381.173;
        (2) It contains less than 10 percent of cooked poultry skins, 
    giblets, or fat, separately, and less than 10 percent of cooked poultry 
    skins, giblets, fat, and meat (as meat is limited in paragraph (a)(1) 
    of this section) or ``Mechanically Separated (Kind of Poultry)'' as 
    defined in Sec. 381.173, in any combination;
    * * * * *
        (b) * * *
        (2) It contains less than 15 percent cooked poultry meat (deboned 
    white or dark poultry meat or both) and/or ``Mechanically Separated 
    (Kind of Poultry) `` as defined in Sec. 381.173, computed on the basis 
    of the moist deboned, cooked poultry meat and/or ``Mechanically 
    Separated (Kind of Poultry)'' in such product; and
        (3) * * *
        (c) * * *
        (1) They contain poultry meat and/or ``Mechanically Separated (Kind 
    of Poultry) `` as defined in Sec. 381.173 or poultry fat only in 
    condimental quantities;
    * * * * *
        5. Section 381.117 is amended by revising the section title and 
    adding a new paragraph (e) to read as follows:
    
    
    Sec. 381.117  Name of product and other labeling.
    
    * * * * *
        (e) On the label of any ``Mechanically Separated (Kind of Poultry) 
    `` described in Sec. 381.173, the name of such product shall be 
    followed immediately by the phrase: ``with excess skin'' unless such 
    product is made from poultry product that does not include skin in 
    excess of the natural proportion of skin present on the whole carcass, 
    as specified in paragraph (d) of this section. Appropriate terminology 
    on the label shall indicate if heat treatment has been used in the 
    preparation of the product. The labeling information described in this 
    paragraph shall be identified on the label before the product leaves 
    the establishment at which it is manufactured.
        6. Subpart P is amended by adding new Secs. 381.173, and 381.174 to 
    read as follows:
    
    
    Sec. 381.173  Mechanically Separated (Kind of Poultry) .
    
        (a) ``Mechanically Separated (Kind of Poultry)'' is any product 
    resulting from the mechanical separation and removal of most of the 
    bone from attached skeletal muscle and other tissue of poultry 
    carcasses and parts of carcasses that has a paste-like form and 
    consistency, that may or may not contain skin with attached fat and 
    meeting the other provisions of this section. Examples of such product 
    are ``Mechanically Separated Chicken'' and ``Mechanically Separated 
    Turkey.''
        (b) ``Mechanically Separated (Kind of Poultry)'' shall not have a 
    bone solids content of more than 1 percent. At least 98 percent of the 
    bone particles present in ``Mechanically Separated (Kind of Poultry) `` 
    shall have a maximum size no greater than 1.5 mm (millimeter) in their 
    greatest dimension and there shall be no bone particles larger than 2.0 
    mm in their greatest dimension.
        (c) ``Mechanically Separated (Kind of Poultry)'' shall not have a 
    calcium content exceeding 0.235 percent when made from mature chickens 
    or from turkeys as defined in Sec. 381.170(a)(l)(vi) and (vii) and 
    (a)(2), respectively, or 0.175 percent when made from other poultry, 
    based on the weight of product that has not been heat treated, as a 
    measure of a bone solids content of not more than 1 percent.
        (d) ``Mechanically Separated (Kind of Poultry)'' may be used in the 
    formulation of poultry products in accordance with Sec. 381.174 and 
    meat food products in accordance with subchapter A of this chapter.
        (e) Product resulting from the mechanical separation process that 
    fails to meet the bone particle size or calcium content requirements 
    for ``Mechanically Separated (Kind of Poultry)'' shall be used only in 
    producing poultry extractives, including fats, stocks, and broths and 
    labeled as ``Mechanically Separated (Kind of Poultry) for Further 
    Processing.''
    
    
    Sec. 381.174  Limitations with respect to use of Mechanically Separated 
    (Kind of Poultry).
    
        (a) A poultry product required to be prepared from a particular 
    kind of poultry (e.g., chicken) shall not contain ``Mechanically 
    Separated (Kind of Poultry)'' described in Sec. 381.173, that is made 
    from any other kind of poultry (e.g., Mechanically Separated Turkey).
        (b) ``Mechanically Separated (Kind of Poultry)'' described in 
    Sec. 381.173 may be used in the formulation of any poultry or meat food 
    product, provided such use conforms with any applicable requirements of 
    the definitions and standards of identity or composition in this 
    subchapter or part 319 of this chapter, and provided that it is 
    identified as ``Mechanically Separated (Kind of Poultry).''
    
        Done at Washington, DC, on: October 30, 1995.
    Michael R. Taylor,
    Acting Under Secretary for Food Safety.
    [FR Doc. 95-27305 Filed 11-1-95; 8:45 am]
    BILLING CODE 3410-DM-P
    
    

Document Information

Effective Date:
11/4/1996
Published:
11/03/1995
Department:
Food Safety and Inspection Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-27305
Dates:
November 4, 1996.
Pages:
55962-55983 (22 pages)
Docket Numbers:
Docket No. 93-008F
RINs:
0583-AB68
PDF File:
95-27305.pdf
CFR: (8)
9 CFR 318.6
9 CFR 319.6
9 CFR 319.180
9 CFR 381.174
9 CFR 381.15
More ...