FR 2025-03855

Document Summary

The notice issued by the Food Safety and Inspection Service (FSIS), part of the U.S. Department of Agriculture, outlines changes to the dollar limits for retail stores selling meat and poultry products to hotels, restaurants, and similar institutions. This adjustment, applicable from April 10, 2025, raises the limits to $103,600 for meat and meat products and $74,800 for poultry products. These limits are set to allow retail stores a certain level of commercial activity with these institutions while maintaining exemption from federal inspection.

Significant Issues and Concerns

One major concern is the technical language and legal references used throughout the document. Sections of U.S. Codes and the Code of Federal Regulations (CFR) are cited, which may not be easily understandable to individuals without a legal background. The document also includes complex calculations and references to economic measures such as the Consumer Price Index (CPI), which could be difficult for readers unfamiliar with these terms to follow.

Additionally, the footnotes include detailed financial adjustments that may be confusing to the general public. Those not accustomed to financial and economic regulations may find this information inaccessible.

Another point of concern is the reliance on digital resources for further information. Not all individuals may have internet access, and those with disabilities may face challenges accessing online content. Although a nondiscrimination statement and contact details are provided, they could benefit from simplification to enhance clarity and reach a wider audience.

Impact on the General Public

For the general public, this document highlights regulatory adjustments that ensure a consistent framework for the sale of meat and poultry products. However, its complexity may limit understanding and engagement from the general public, especially those who lack familiarity with economic and legal terminologies.

Impact on Specific Stakeholders

The adjustments may have different impacts on various stakeholders. Retailers selling meat and poultry products benefit positively. Their ability to engage in commercial activities with hotels and restaurants is enhanced without the need for federal inspection, up to the new limitations. This flexibility can be vital for business operations and could potentially lead to increased sales.

On the other hand, institutions purchasing these products might need to navigate the adjusted financial thresholds to understand if their transactions are subject to federal inspection or not. This may necessitate additional administrative oversight or consultations with legal or financial experts.

Overall, while these adjustments are designed to align with changes in the cost of goods, the complexity of the document could pose challenges for its broader applicability and understanding without further outreach or clarification efforts.

The Federal Register document outlines changes to the dollar limitations on meat, meat products, poultry, and poultry products that retail stores can sell to hotels, restaurants, and other institutions without losing their exemption from federal inspection requirements. These adjustments are significant as they directly influence the extent to which retail outlets can operate without additional regulatory burdens.

The document details that retail outlets must adhere to two primary financial criteria to maintain this exemption: sales must not surpass 25 percent of the total dollar value of the store's retail product sales, or exceed a specific calendar year retail dollar limitation determined by the FSIS Administrator. These thresholds are crucial as they help define how much product can be sold to non-household consumers while keeping the operations classified under traditional retail exemptions.

Furthermore, the financial thresholds are subject to change based on the Consumer Price Index (CPI). An automated adjustment process occurs in the first quarter of each year if the CPI reflects a price change exceeding $500 for the same volume of products from the previous year. For 2024, there was an average price increase for meat and meat products by 2.85 percent, a reduction for Siluriformes fish by 1.86 percent, and an increase for poultry by 0.83 percent. These percentage changes resulted in a revised retail dollar limitation increase of $2,700 for meat and meat products, including Siluriformes fish, and an increase of $600 for poultry.

As a result of these adjustments, for calendar year 2025, the FSIS has set the retail dollar limitation at $103,600 for meat and meat products and $74,800 for poultry and poultry products. These updated limitations enable a broader scope for retail stores to sell a higher volume to institutions like hotels and restaurants without undergoing federal inspections that might apply otherwise.

One issue identified in the document is the potential complexity related to understanding these financial adjustments, particularly how the CPI affects the dollar limitations. The detailed calculations might be confusing to those unfamiliar with economic indices or financial regulations. The document's reliance on technical language and specific U.S. Codes and CFR sections further complicates comprehension for the general public. Clarification and simplification of such financial details would improve accessibility for all stakeholders, ensuring that retailers can effectively navigate the regulatory landscape without needing legal expertise.

Additionally, the document assumes that readers possess a familiarity with federal laws, acronyms, and specific regulatory processes without providing necessary context or explanations. Providing definitions and a simplified overview would help demystify the financial references for those not versed in these areas, enhancing the document's utility and comprehensibility.