Food and Beverage News and Trends - June 2, 2025

This regular publication by DLA Piper lawyers focuses on helping clients navigate the ever-changing business, legal, and regulatory landscape.

Unpacking the Make Our Children Healthy Again report. On May 22, the Trump Administration released the 100-day MAHA Making Our Children Healthy Again report. This report was issued in response to a February 2025 Executive Order, which established the President’s Make America Healthy Again (MAHA) Commission to address the problem of chronic diseases in the US. The current report includes a description of childhood chronic disease in the US (eg, obesity, diabetes, neurodevelopmental disorders, and mental health challenges among children), an assessment of the potential contributing factors, an evaluation of the federal programs and funding intended to address childhood health issues, and an examination of the relevant data and potential industry influence on research. The report focuses on four key “root causes” of chronic disease: diet, chemical exposure, technology impacts, and medical treatments. This Assessment is expected to be followed by a Make our Children Healthy Again Strategy 80 days later. For further analysis of the report, access our webinar here and alert here. 

GOP lawmakers reject MAHA report on herbicides. On May 23, key Republican lawmakers and agriculture industry officials criticized certain findings of the Make Our Children Health Again report that found that two widely used pesticides could be linked to chronic health conditions like diabetes, heart disease, and asthma. The report particularly singled out the pesticides glyphosate and atrazine. The MAHA Commission cited mostly preliminary data as evidence that these and other pesticides were linked to an increase in chronic conditions. Representative Glenn Thompson (R-PA) and Senator John Boozman (R-AR) released a statement saying, “We are troubled by the initial findings of the MAHA commission assessment and their impact on America’s farmers and ranchers.” Senator Cindy Hyde-Smith (R-M) stated that Kennedy had told her, “The drafts that I’ve seen, there’s not a single word in them that should worry the American farmer.” But, she continued, “Based on my initial thoughts from what I’ve read and public responses from major farm, commodity, and agricultural organizations, that does not seem to be the case. There is enough in the report to cause plenty of worry about how key crop protection tools will be regulated in the future.”

FDA advances post-market chemical review program. FDA has announced a major step in its post-market review for food chemicals. The agency stated that, in the months to come, it will introduce a modernized, evidence-based prioritization scheme for reviewing existing chemicals; finalize a systematic post-market review process; issue an updated list of post-market chemicals under review; and expedite its review of such chemicals. Among the post-market chemicals slated for this first round of review are the preservative propylparaben, frequently used in commercial baked goods and in condiments; phthalates, widely used as plasticizers in packaging; ADA (azodicarbonamide), a foaming agent used both in baked goods and in plastics; BHT (butylated hydroxytoluene), a preservative and antioxidant; BHA (butylated hydroxyanisole), an antioxidant, preservative, and stabilizer; and titanium dioxide, added to brighten the look of food. A press release from FDA states, “This post-market review effort is part of a larger initiative to improve food chemical oversight,” and points to Secretary Kennedy’s announcement in April of coming FDA actions aiming “to phase out all petroleum-based synthetic dyes from the nation’s food supply.” The review is consistent with the MAHA report, which pointed to many of these chemicals as contributors to chronic disease in children.

USDA has approved two state waivers to ban unhealthy food items from SNAP. The USDA has approved Supplemental Nutrition Assistance Program (SNAP) waivers for Nebraska, Indiana, and Iowa, allowing them to ban the use of SNAP benefits to buy certain unhealthy foods as part of a “novel demonstration project.” Nebraska’s will exclude soda, “soft drinks,” and energy drinks, while Indiana will exclude “soft drinks” and candy. USDA also granted a ban requested by Iowa to exclude “all nontaxable food items” as defined under its statute. All three waivers go into effect on January 1, 2026, as two-year pilot programs. Secretary Rollins has expressed support for the MAHA initiative and is encouraging other states to seek similar waivers in the future. See our recent coverage of this story.

DOJ says USDA’s purged climate and farm support pages will be restored. On May 12, the Department of Justice told the US District Court for the Southern District of New York that the numerous climate, conservation, and agricultural support resources that were removed from the USDA’s website on January 31 this year will be restored. The return of the purged pages is the result of a lawsuit filed in the SDNY in February by a coalition of agricultural and environmental advocacy groups. In a letter to the court, the DOJ stated that the purged USDA content – a vast trove of materials about conservation practices, rural clean energy, climate-smart farming, and access to federal loans – would be fully restored in about two weeks. The DOJ also said that, going forward, “USDA commits to complying” with such federal laws as the Freedom of Information Act and “the adequate-notice and equitable-access provisions of the Paperwork Reduction Act.” See our earlier coverage of this story here.

SAFE FOOD Act would require USDA to study unification of all food safety agencies. A bill that would direct the USDA to evaluate the possible consolidation of all federal food safety entities into a single new agency has been introduced to the Senate. Introduced on May 21 by Senator Tom Cotton (R-AR), the bill, the Study And Framework for Efficiency in Food Oversight and Organizational Design (SAFE FOOD) Act, addresses long-standing concerns about fractured oversight of food safety at the federal level. Under the SAFE FOOD Act, the Secretary pf Agriculture would be required to initiate a study the unification of the key food safety agencies – in particular, the FDA, CDC, and Food Safety and Inspection Service – within 60 days and to report its recommendations to Congress within a year. The bill is now before the Senate Committee on Agriculture, Nutrition, and Forestry.

MAHA supporters form new group to promote Kennedy’s agenda. On May 15, allies of HHS Secretary Robert F. Kennedy, Jr. gathered to launch the Make America Healthy Again Institute, an organization aiming to promote the department’s oversight and reform efforts. “The people in the bureaucracies like the status quo, and so Bobby Kennedy and all of the great people who are at the top of these organizations, they have behind them this movement, this mass of people who care deeply, who’ve been working for years,” said MAHA Institute co-founder Mark Gorton. Gorton added, “The MAHA Institute has set itself as a goal to channel this energy, to channel this mass movement and to tactically try and connect all of those people with the people in the government.” Gorton is a veteran of Kennedy’s 2024 run for president. He said that the institute is designed to help HHS address the root causes of chronic illness and obesity. At the launch meeting, the group framed itself as staunchly anti-institution and anti-corporation. 

New Canadian agriculture minister addresses US and China trade issues. In March of this year, China’s Ministry of Commerce announced that Canadian canola oil, oil cakes, and peas would be subject to a tariff rate of 100 percent and further announced a 25 percent tariff on pork and aquatic products. The rationale provided by China was that the tariffs serve as a retaliatory measure to the 100 percent tariffs that Canada imposed on Chinese electric vehicles in late 2024. On May 15, 2025, Heath MacDonald, Canada's new agriculture minister, stated that addressing issues in the current trade climate is among his top priorities. This statement came after MacDonald had spoken with provincial agriculture ministers as well as members of Canada’s canola industry. Roughly half of Canada’s canola exports go to China, and Canadian farmers have faced significant impacts as a result of these tariffs. Due to the rising trade tensions with China and the US, approximately 88 percent of Canadian agri-businesses are pushing for the country to expand its trade relationships with other countries, according to new data from the Canadian Federation of Independent Business (CFIB). The agriculture industry is also under strain from the impact of tariffs imposed by the Trump Administration, particularly as it relates to steel and aluminum materials, which are essential for the production of farming equipment. In recognition of these circumstances, Farm Credit Canada, as part of its commitment to assisting the industry in adapting to evolving trade conditions, is providing $1 billion in new lending through loans, principal payment deferrals, and line of credit increases. 

Federal budget cuts to SNAP: impact on businesses. In addition to increased restrictions in eligibility requirements, the One Big Beautiful Bill Act (OBBA) would freeze benefit hikes beyond adjustments for inflation and would move many costs to the states, requiring them to start matching federal funds for food aid. Overall, food aid would be cut by about $267 billion over 10 years. Writing for MSN, reporter Evie Lio noted that cutting SNAP benefits “would have a relatively small negative impact on the U.S. economy,” but, she continued, “The impact would be more pronounced for the food and beverage sector, especially companies that rely on revenue from low-income consumers,” in particular packaged food companies. Retail businesses that serve low-income communities would also be affected. As of 2023, 42.1 million people – 12.6 percent of US residents – were receiving monthly SNAP benefits, and SNAP makes up about $112.8 billion, or 4 percent, of total US food spending. The Congressional Budget Office estimates that 3.2 million Americans could lose SNAP benefits under the OBBBA. The OBBBA now heads to the Senate.

Farm Credit Canada annual report: A mixed outlook for Canada’s food and beverage sector. While overall food and beverage sales in Canada are projected to grow a modest 0.6 percent this year, volume across the sector is expected to contract by 1.5 percent amid ongoing cost pressures, trade uncertainties, and shifting consumer habits, according to Farm Credit Canada’s latest annual report. Although per capita expenditure on food and beverages has declined for four consecutive years due to contraction in household disposable income, the report finds that food and non-alcoholic beverages showed signs of recovery near the end of 2024. The alcoholic beverage category, however, remains under pressure. In contrast, dairy is a standout, buoyed by strong demand and higher quotas, with projected sales growth this year of 8.3 percent. Sugar and confectionery manufacturers are also poised for a 10 percent sales increase, though cocoa price volatility and US trade dependency cloud margin forecasts. Sector-wide, the report emphasizes innovation, diversification, and productivity as strategic imperatives for navigating continued economic headwinds. 

FDA is said to have stalled in posting food safety letters. On May 9, NBC News reported that although the FDA, during recent inspections, found some significant violations of food safety laws by several companies, the public never learned of the violations since the federal workers responsible for reviewing food safety letters before they are posted online were fired. The news outlet said its sources were a current FDA staffer and a former FDA employee. It said that the problem stemmed from the Trump Administration’s mass layoffs in early April, which gutted the teams responsible for reviewing public records and redacting any confidential information. The FDA responded that it “remains fully committed to transparency, accountability, and the protection of public health and that it “is continuing to conduct inspections, enforcement and oversight to ensure consumer safety.”

Public health groups call for reinstatement of CDC investigative unit. On May 12, a coalition of public health groups called on the Department of Health and Human Services to immediately reinstate and fund the Division of Environmental Health Science and Practice at the Centers for Disease Control and Prevention. That division had been eliminated on April 1 as part of a widespread reduction in force of 10,000 employees across HHS. This division protects the American public from exposure to environmental health hazards, including toxic contaminants in food and water, infectious disease outbreaks in restaurants and on cruise ships, and other hazards, the groups said. The letter noted that among other things, the division houses the CDC team that helped solve a nationwide lead poisoning outbreak in children caused by imported cinnamon applesauce that had been intentionally adulterated with lead chromate.

Maryland and Washington enact EPR laws for packaging. Two new extended producer responsibility (EPR) laws in Maryland and Washington state track many of the terms found in earlier EPR statutes in California, Colorado, Maine, Minnesota, and Oregon, yet each contains nuances that merit careful attention. See our alerts on the Maryland and Washington laws and the California draft regulations.

Survey shows that US consumers are paying attention to food labels. On May 14, NSF, a global public health and safety organization, issued several key findings from its recent survey of the effectiveness of US food labeling and its role in consumer decisions – in particular observing that an increasing number of American shoppers are paying close attention to what’s in their food. Among other things, the survey of 1,000 Americans found that 83 percent of US consumers read food labels before deciding to buy a product, with 64 percent paying more attention to labels than they did five years ago. When reading food labels, adults first check the expiration date (86 percent), ingredients list (79 percent), health claims (78 percent), allergen warnings (77 percent), and country of origin (77 percent). On the other hand, just 16 percent of adults believe that food manufacturers’ health claims are trustworthy, and only 37 percent believe that US food labeling is better than labeling in other countries.

Avian flu update.

• H5N1 has now reached every Canadian province, with the confirmation of highly pathogenic avian influenza in a Prince Edward Island domestic poultry flock. The CFIA reported on May 15 that a small non-commercial flock in Kings County, PEI tested positive for HPAI, and authorities swiftly placed the premises under quarantine while establishing a primary control zone on the island to contain the virus. (The agency has notified the World Organisation for Animal Health (WOAH) of the case, and local poultry owners have been urged to heighten biosecurity measures, underscoring the nationwide spread of avian flu and the need for vigilance even in previously unaffected regions.
  
  
• As of May 23, no other outbreaks of avian influenza have been detected in Canada’s cattle or dairy herds. To ensure any incursion of HPAI would be identified swiftly, the CFIA has expanded surveillance to the dairy sector – by early May, laboratories had tested 3,498 samples of raw milk from farms across all provinces, with all results negative. Public health and food safety authorities across Canada continue to emphasize that avian flu is not a food safety concern for consumers; there is no evidence that properly cooked poultry or eggs, or pasteurized dairy products, can transmit the virus to humans. The situation is evolving, and further measures may be implemented as authorities monitor avian flu risks to the food and beverage supply chain.
  
  
• Brazil has reported the country’s first outbreak of H5N1, at a commercial poultry operation in Montenegro. The federal government responded swiftly, declaring a 60-day animal health emergency, inspecting more than 500 surrounding properties, and establishing 24/7 biosecurity checkpoints to examine all animals in transit and disinfect every passing vehicle. Numerous countries, among them Canada, China, Mexico, Russia, and South Korea, as well as the entire European Union, have temporarily suspended Brazilian poultry exports. Marcelo Mota, Brazil’s Chief Veterinary Officer, stated that for the moment the country is concentrating on biosecurity for poultry operations and has not yet begun testing dairy cows for H5N1. On May 25, health officials in Rio Grande do Sul state ruled out H5N1 infections in five people – three zoo employees and two farm workers who had flulike symptoms. Brazil is the world’s largest chicken exporter.
  
  
• Crescent Duck Farm, the last remaining duck farm on Long Island, is back in operation, with about 900 12-week-old ducklings that were hatched offsite during the farm’s avian flu quarantine. As we reported earlier this year, the farm – the supplier of nearly 4 percent of the ducks sold in the US and a favorite among high-end restaurateurs – ceased operations in late January when H5N1 invaded its premises. Its future appeared uncertain. While its 100,000 birds had to be culled, the farm was allowed to keep several thousand duck eggs, which were sanitized, hatched offsite, and tested for signs of the virus, in hopes of preserving the genetic line. The USDA quarantine on the premises was officially lifted last week, and the ducklings have passed all tests and been transported to the farm. An additional 1,800 ducklings will be brought to the farm in June.
  
  
• On May 24, the New Jersey Department of Agriculture’s Division of Animal Health and the USDA’s Animal and Plant Health Inspection Service confirmed an outbreak of H5N1 at a live bird market in Essex County, New Jersey. And on May 15, the National Veterinary Services Laboratory confirmed the presence of H5N1 in chickens at a commercial egg operation in Maricopa County, Arizona. Overall, notably, confirmations of H5N1 in US commercial farms are declining.
  
  
• Ostrich cull controversy escalates as US officials and Dr. Oz chime in. The legal and public battle over the fate of 400 ostriches in British Columbia has intensified following the Federal Court’s May 13 decision upholding a CFIA cull order. Despite the ruling, on May 26 the farm owners filed an appeal in Federal Court, arguing that the ostriches have developed herd immunity and that studying their survival could contribute to vaccine research. US officials have now chimed in too. US Health and Human Services Secretary Robert F. Kennedy, Jr. has formally requested that the CFIA study the birds rather than destroy them, citing their potential scientific value, and Dr. Mehmet Oz, a former television personality and the current Administrator of the US Centers for Medicare and Medicaid Services, has offered to relocate the flock to his Florida ranch. Meanwhile, tensions on the ground continue to rise. The RCMP has been monitoring the area around the farm amid growing protests and is investigating the fatal shooting of one of the ostriches, reportedly by a drone. The CFIA has not disclosed when or how the cull will proceed. The case continues to raise questions about the balance between public health, animal welfare, and scientific research. At this writing, the ostriches remain alive.