Food and Beverage News and Trends - March 9, 2026

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

FDA releases Q&A guidance on the Food Traceability Rule – stakeholder programs on compliance to come. Fulfilling Section 204(d) of the Food Safety Modernization Act (FSMA 204), on February 19 the Food and Drug Administration (FDA) issued “Questions and Answers About Requirements for Additional Traceability Records for Certain Foods,” draft guidance regarding implementation of the Food Traceability Rule. Presented in a question‑and‑answer (Q&A) format, the guidance addresses the Rule’s applicability to entities such as retail food establishments and restaurants and provides information on the Food Traceability Plan and recordkeeping requirements. The Agency plans to schedule a series of programs for stakeholders to help them prepare for and comply with the Rule. The Food Traceability Rule’s compliance deadline, originally slated for January 2026, was recently extended to July 20, 2028. Public comment on the draft guidance may be submitted through May 21.

California AB 2034 would close GRAS loophole for processed foods sold in the state. A measure introduced to the California legislature would empower the California Department of Public Health (CDPH) to conduct pre-market reviews of new food additives in processed foods. AB 2034, “Food safety: unsafe additives and ingredient disclosures,” builds on Executive Order (EO) N‑1‑25 issued in January by Governor Gavin Newsom, which aims to increase Californians’ access to healthy, affordable food and “limit the harms associated with ultra-processed foods.” AB 2034 would effectively close the Generally Recognized As Safe (GRAS) loophole by requiring manufacturers of any packaged food product sold in California to provide evidence to CDPH about the safety of any food additives, color additives, or dietary ingredients that were introduced into commerce after January 1, 1958 and that have not undergone FDA pre-market review. Among other requirements, manufacturers would also need to provide a complete list of any ingredients not already listed on a food label – for instance, ingredients that are currently exempt from labeling requirements under 21 CFR 101.100. CDPH would be required to license, or decline to license, new food additives and ingredients and, when assessing the safety of an ingredient, would be required to consider such factors as whether the substance is banned or restricted in other jurisdictions due to health concerns. AB 2034 is in the earliest legislative stages. See it here.

FDA launches produce safety regulatory system. FDA has announced the launch of the new Produce Regulatory Program Standards (PRPS), putting in place a uniform regulatory foundation for the array of government agencies that oversee produce safety under the Food Safety Modernization Act’s Produce Safety Rules. In a Constituent Update, FDA stated that the PRPS “are critical to advancing an integrated food safety system that leverages the collaboration and resources among federal, state, local, and tribal agencies to protect public health.” The PRPS were developed in collaboration with the National Association of State Departments of Agriculture, the Association of Food and Drug Officials (AFDO), and state-level produce inspection programs. The standards address regulatory authority, inspection and sampling protocols, inspectors’ training, program assessment and quality management systems, and mechanisms for responding to produce‑related incidents. While formal enrollment in PRPS-related activities is not currently available, FDA notes that it has initiated a pilot program involving the voluntary participation of nine programs in the FDA-State Produce Safety Implementation Cooperative Agreement Program (State Produce CAP) which “have elected to complete some foundational PRPS work.” The PRPS, FDA adds, prioritize produce safety “given that vegetables and fruits are essential components of a nutrient-dense, whole foods diet, as emphasized in the latest Dietary Guidelines for Americans.” Find out more about the PRPS.

Canada's National School Food Program becomes permanent. The Budget 2025 Implementation Act has enacted legislation to make the National School Food Program permanent under the National School Food Program Act. Budget 2025 proposed legislation and ongoing funding of $216.6 million per year starting in 2029‑30 for Employment and Social Development Canada, Indigenous Services Canada, and Crown‑Indigenous Relations and Northern Affairs Canada to make the National School Food Program permanent. The program aims to provide access to healthy meals for 400,000 more children each year.

Agriculture as a pillar of national security: two related developments.

• Executive Order aims to protect glyphosate and phosphorus production. President Donald Trump has signed EO 14387, “Promoting the National Defense by Ensuring an Adequate Supply of Elemental Phosphorus and Glyphosate-Based Herbicides,” which links the production of glyphosate and phosphorus to American economic and national security. Invoking the Defense Production Act of 1950, the EO directs the Secretary of Agriculture to work with the Department of War “to determine the proper nationwide priorities and allocation of all the materials, services, and facilities necessary to ensure a continued and adequate supply of elemental phosphorus and glyphosate-based herbicides.” A White House fact sheet on the EO stated that a lack of either agricultural chemical could “leave our defense industrial base and food supply vulnerable to hostile foreign actors,” since there is only “one domestic producer of elemental phosphorus and glyphosate-based herbicides.” See the EO.


• USDA and Department of War sign MOU. Agriculture Secretary Brooke Rollins and Secretary of War Pete Hegseth have signed a Memorandum of Understanding (MOU) that formalizes the status of agriculture as a pillar of national security, tightening the relationship between the two agencies under the National Farm Security Action Plan and setting out a framework for inter-departmental cooperation. The National Farm Security Action Plan, a Department of War press release stated, is “a governmentwide, multiprong effort focused on ensuring America's ability to secure its own food supply, in part by eliminating interference from adversarial nations. Part of that plan involves using presidential authorities to reclaim farmland in the U.S. currently owned by foreign adversaries — such as China.” In addition, the Department of War noted, the MOU gives the US Department of Agriculture (USDA) immediate access to the capabilities of the Defense Advanced Research Projects Agency (DARPA), a research and development agency responsible for the development of emerging technologies for use by the military. That access, Hegseth stated, “will ensure agriculture projects directly enhance our military's strength and readiness." According to USDA, 43.4 million acres of forest and farmland in the US, or 3.4 percent of all agricultural land, is foreign-owned. China owns less than 1 percent of that, or 349,442 acres. The largest portion – 14.2 million acres, making up 32 percent of the total – is Canadian-owned.

HHS, USDA, and EPA announce more than USD1 billion in investments in farm modernization and food safety. On February 27, USDA, the Department of Health and Human Services (HHS), and the Environmental Protection Agency (EPA) announced a joint commitment of more than USD1 billion to accelerate farm modernization and long-term food supply security. In a joint press release, the agencies said that EO 14212, “Establishing the President's Make America Healthy Again Commission,” directed the involved agencies to work with farmers to ensure that "United States food is the healthiest, most abundant, and most affordable in the world. American farmers are critical partners in the success of the MAHA agenda." The commitment lays out a three-pillar plan comprised of:

• Research to better understand the risks chemicals may pose to individual and population health. To support this, EPA, USDA, and the National Institutes for Health (NIH) will develop a research and evaluation framework for understanding the cumulative impact of exposure across chemical classes in the food supply.


• Federal investment in regenerative agriculture practices and education. Among the efforts to support this, USDA is dedicating USD400 million through the Environmental Quality Incentives Program (EQIP) and USD300 million through the Conservation Stewardship Program (CSP) to fund regenerative agriculture projects in fiscal year 2026.


• Encouragement of private-sector innovation in farming modernization. Among the programs aiming to support this pillar, NIH will create a USD100 million grand prize challenge for researchers to identify creative solutions for evaluating the exposure, diagnosis, and treatments of cumulative chemical exposures on individual health. EPA is also offering a USD30 million grand prize challenge seeking cost-effective alternatives to the pre-harvest desiccation use of pesticides, with the goal of reducing pesticide use while providing farmers with innovative new crop-management tools.

See the HHS press release about this development.

USDA proposes faster line speeds. USDA has announced two proposed rules that would update federal line speed regulations in poultry and pork establishments operating under modern inspection systems. USDA stated in a mid-February press release that the updates reflect years of data and experience and are designed to lower costs for American families, reduce outdated regulatory barriers for processors, and support a more efficient and resilient food supply. The changes would allow eligible establishments to operate at higher speeds. USDA's Food Safety and Inspection Service (FSIS) would maintain full oversight of every in-scope establishment, and inspectors would maintain the authority to slow or stop operations whenever an inspection cannot be performed effectively. Agriculture Secretary Rollins stated, “These updates remove outdated bottlenecks so that we can lower production costs and create greater stability in our food system. By bringing our regulations in line with proven, real-world capabilities, we are supporting a stronger supply chain, giving producers and processors the certainty they need, and helping keep groceries more affordable for every household.” USDA invites public comment on the two proposed rules through April 20.

USDA’s 2026 Food Price Outlook forecasts 3.1-percent rise in food prices this year. USDA’s Economic Research Service’s 2026 Food Price Outlook is forecasting an overall 3.1-percent rise in the price of food this year. The primary drivers of the increase, the Outlook states, are coming increases in the price of beef and veal (5.5 percent), sugar and candies (6.7 percent), and non-alcoholic beverages (5.2 percent). The Outlook predicts that the cost of food to be consumed at home will rise 2.5 percent this year, while food consumed away from home, such as in restaurants, may cost as much as 3.7 percent more. Pork prices are predicted to increase 1.9 percent; poultry prices are expected to increase only .1 percent, while retail egg prices are forecast to decline by as much as 27.4 percent. Overall, the price of groceries in the US has risen about 40 percent since 2020. See USDA’s summary of the 2026 Food Price Outlook.

Canadian ministerial mission secures expanded market access for meat products in Indonesia. Following a ministerial mission to Indonesia, the Canadian Food Inspection Agency (CFIA) announced that Indonesian authorities have approved additional Canadian meat establishments and expanded eligibility for exports of beef and pork products. The move allows more federally licensed Canadian processors to ship fresh and processed meat to Indonesia, opening new sales opportunities in the Southeast Asian market.

FDA redesigns infant formula web resources. In its February 26 Constituent Update, FDA unveiled a redesign of its online infant formula resources to make the pages more user-friendly for parents, caregivers, infant formula manufacturers, and healthcare professionals. The updated page now includes a publicly accessible list of all infant formulas now marketed in the US. FDA stated that the redesigned resources reflect a key deliverable of Operation Stork Speed, an initiative launched in March 2025 to expand options for safe, reliable, and nutritious infant formula sold in the US.

CDC declares infant botulism outbreak over. The Centers for Disease Control and Prevention (CDC) has declared the multi-state infant botulism outbreak over. The February 26 declaration follows extensive review and investigation by public health officials at state and local health departments, California’s Infant Botulism Treatment and Prevention Program (IBTPP), and the CDC. Since December 10, 2025, no new cases have been added; three infants who had originally thought to have botulism were ultimately diagnosed with other illnesses and excluded from the case count. As of February 26, the investigation includes 28 cases of confirmed infant botulism and 20 cases of probable infant botulism. While CDC has declared the outbreak over, FDA’s investigation into the root cause is ongoing.

Canada makes trade easier for apple exports to Mexico. The CFIA has eased phytosanitary requirements for Canadian apple exports to Mexico by updating technical conditions and documentation rules, reducing regulatory barriers for growers and packers. The change is expected to lower administrative costs, speed up shipments, and expand export volumes. Apples are Canada’s largest fruit crop in terms of production volume, and they generate the second-highest farm gate value for fruit crops. 

HHS Secretary Kennedy speaks about citizen petition to revoke GRAS status of many refined carbohydrates. Appearing on CBS News’s 60 Minutes on February 15, HHS Secretary Robert F. Kennedy, Jr. stated that FDA will act on a citizen petition calling for a safety review of some ingredients found in ultra-processed foods, but he stopped short of calling for new regulations that would affect the packaged food industry. The citizen petition, filed in August 2025 by former FDA Commissioner David A. Kessler, MD, called on FDA to revoke the GRAS status of dozens of refined carbohydrates commonly used in food manufacturing, such as corn syrup, high-fructose corn syrup, maltodextrin, and refined flours, noting that these ingredients have been linked to an array of human health issues. Kennedy has championed reforming the GRAS process. However, there are certain legal impediments to such a change. For instance, in 2021, the US District Court of the Southern District of New York ruled that material changes to the GRAS framework require congressional action. In his February 15 interview, HHS Secretary Kennedy stated, “I’m not saying that we're going to regulate ultra-processed food. Our job is to make sure that everybody understands what they're getting, to have an informed public.”

FDA public meeting on defining allergen thresholds. In mid-February, FDA held a virtual public meeting and listening sessions focused on defining allergen thresholds and using them to standardize how nutrition labels on packaged foods communicate food allergy risks. Food allergen thresholds set out the amount of an allergenic protein a susceptible person may safely consume before the onset of symptoms. The Agency is looking to replace the current array of voluntarily allergen warnings – “may contain” or “made in a facility” – that manufacturers currently apply to products, as well as provide consumers with science-based guidance on when unintended allergen exposure is unlikely to cause reactions in most allergic consumers. Taking part in the three-day event were FDA scientists, allergists, consumer groups, food industry representatives, healthcare professionals, researchers, and other stakeholders. In the meeting announcement, FDA said that, over the past year, the Agency “has met with several targeted stakeholders from industry, consumer, and health professional groups to gather input on the published allergen threshold data and to identify data gaps and scientific needs for establishing or applying thresholds.” FDA invites public comment on the topic through May 19.

EU considers precautionary allergen labeling rules. On February 27, the European Commission released a draft act that would set out voluntary requirements for precautionary allergen labeling (PAL) indicating the possible, unintentional presence of allergens in food. Each European Union member state currently maintains its own set of rules on the management of unintentional allergens in food products. The Commission stated that harmonizing PAL across the member states would promote consumer certainty and protect the allergic population. Adoption of the act is planned for Q4 2026.

FSIS creates new position to strengthen field training, inspection consistency. On February 13, FSIS announced that it is establishing a new Consumer Safety Inspector (CSI) Training Leader position within the Office of Field Operations to strengthen on-the-job training and promote consistent application of policy for inspection program personnel nationwide. During fiscal year 2026, FSIS plans to phase in 100 CSI training leader positions in three waves. The first wave will be implemented in Q2 2026. Position placement will be based on the number of inspection personnel, operational complexity, and workforce needs across districts. In a Constituent Update, FSIS stated that this new role focuses on training and mentoring: “It does not create additional inspection authority, does not change inspection frequency, and does not add a second layer of inspection. Training Leaders support inspector development by working alongside inspection personnel to reinforce consistent application of existing regulatory requirements.” By providing dedicated field-based training support, FSIS aims to promote nationwide consistency in inspection activities, improve documentation quality, and strengthen overall workforce readiness. The CSI Training Leader position also aims to create a non-supervisory career advancement opportunity for eligible inspection personnel, supporting retention and long-term workforce stability.

USDA: Request for Information on data products. USDA has issued “Request for Information: Opportunities, Challenges, and Emerging Areas in Statistical Data, Analysis, and Research.” A department press release noted that numerous entities within USDA, including the Economic Research Service, National Agricultural Statistics Service, and Office of the Chief Economist, produce statistical data, analysis, and research that aim to provide the agriculture community with timely, accurate, and useful information. “USDA's data products have long been the gold standard in market reporting,” said USDA Chief Economist Dr. Justin Benavidez. “That doesn't mean we can’t make our products better. We’re looking for producer-driven input that can introduce more transparency and ease of access across USDA’s data outputs. We’re also looking for ways to review our own accuracy and take steps to make improvements where we can.” USDA invites public comment on the Request for Information through April 9.

USD263 million purchase of dairy and specialty crops for nutritional assistance programs. On February 19, Agriculture Secretary Rollins announced USDA’s intent to purchase up to USD263 million in dairy and agricultural products from American farmers and producers to distribute to food banks and nutrition assistance programs across the country. In a press release, the Department said that these purchases are being made through USDA’s authority under Section 32 of the Agriculture Act of 1935 and will assist producers and communities in need. “From milk and dairy to fruits, legumes, and tree nuts, these staples are essential for feeding families and sustaining America’s agricultural economy,” said Agriculture Secretary Rollins. “Through these Section 32 purchases, USDA is delivering wholesome, real food to Americans while injecting critical dollars into local economies. By turning harvests into meals, we are not only stabilizing farm income and protecting rural jobs – we are nourishing our nation and supporting the farmers who feed America.” Agricultural Marketing Services Section 32 continuously purchases a variety of domestically produced and processed agricultural products. These USDA Foods are made available to the department’s Food and Nutrition Service nutrition assistance programs, such as food banks that operate under the Emergency Food Assistance Program. More than half of the funds – USD148 million – will be used to purchase dairy products. The rest is dedicated to purchases of various specialty crops, such as dried beans, lentils, pecans, and pears.

USDA reaches settlement over purging of pages mentioning climate from its websites. USDA has reached a settlement in litigation over the department’s removal in early 2025 of hundreds of pages mentioning climate change from its websites. The pages in question offered climate, conservation, and agricultural support resources that were widely used by farmers, municipalities, and the public. As we reported last year, that action came on January 31, 2025; in February 2025, a coalition of advocacy groups brought suit, alleging that, in deleting the web content, USDA was harming farmers, researchers, and the public who rely on agricultural data about climate to manage risks and access federal programs. The plaintiffs further charged that, in deleting the pages, USDA had violated the Administrative Procedure Act, Paperwork Reduction Act, and Freedom of Information Act. In May 2025, the Department of Justice told the US District Court for the Southern District of New York that the purged USDA content would be fully restored. Under the terms of the settlement, USDA has agreed to keep its old-growth forest inventory and climate risk viewer online and available to the public until the department sends all relevant data sets directly to the plaintiff groups. It also promised to comply with the public notice requirements set out in the Paperwork Reduction Act. The case is Northeast Organic Farming Association of New York v. USDA, and the plaintiffs are the Northeast Organic Farming Association of New York, Natural Resources Defense Council, and Environmental Working Group.

NWS in the news.

• Because New World Screwworm (NWS) is still “a forward-moving pest,” there are currently no plans to re-open US southern ports to livestock from Mexico, Agriculture Secretary Rollins stated during the 2026 Commodity Classic agricultural conference in San Antonio. The Nebraska Rural Radio Association reported that Agriculture Secretary Rollins, speaking on February 26, said she reviews information on NWS every day, “and every day I have to make the decision to continue to protect livestock on our side of the border.”


• The border closure has led to continuing declines in US feedlot inventories, resulting in slower cattle flow into feedyards and limited herd rebuilding. Texas Cattle Feeder Association President Ben Weinheimer told RFD News, “Should we continue to have to produce under the current environment without those cattle in 2026, it will produce one billion fewer pounds of beef, just in our three-state region of Texas, Oklahoma, and New Mexico.”


• The ongoing border closure has prompted Mexico to spend an estimated USD1.1 billion in developing its meatpacking industry.


• FDA has issued emergency use authorizations for the use of two existing drugs to treat NWS in dogs and cats. NexGard, for dogs, and NexGard COMBO, for cats, are chewable tablets available by prescription only from licensed veterinarians.

Avian flu update.

Much of the latest reporting on avian flu has covered outbreaks in backyard flocks and wild animals, such as elephant seals in California’s Año Nuevo State Park, Great Horned Owls in Utah, and swans in London’s Dockyards. However, the virus continues to affect commercial agricultural operations across North America and around the world. Here are some of the latest developments:

• In February, the H5N1 avian influenza variant struck chickens, turkeys, ducks, and farm-raised game birds in 29 US commercial operations. The majority of cases were in Pennsylvania, where, in the 30 days before this writing, more than 7.4 million chickens, both broilers and layers, were culled. As part of its large-scale biosecurity effort, the state currently requires more than 200 dairy farms in its hardest-hit counties to test their bulk milk tanks for the presence of the virus.


• The CFIA has confirmed new outbreaks of highly pathogenic avian influenza in Argentina, prompting Canada to impose immediate import restrictions. Shipments of raw and unprocessed meat or products from birds slaughtered in Argentina are now prohibited from entering Canada. Products and byproducts from birds collected or slaughtered before February 23 remain eligible for import.


• Citing concerns about avian influenza and other diseases, on February 25 Saudi Arabia’s Food and Drug Authority imposed a total ban on imports of poultry meat and table eggs from more than 40 countries, among them China, Germany, and India, and a partial ban on those products from regions in another 16 countries, among them Australia, Canada, and the US.


• Pennsylvania Governor Josh Shapiro is urging federal officials to move forward with development of a bird flu vaccine for poultry. Such a vaccine, he stated on February 24, would “take months, and months, and months to deploy, if at all,” and would “likely be in the form of a pilot.” Meanwhile, Representative Lloyd Smucker (R-PA) called on USDA to use Lancaster County as a trial site to test potential avian flu vaccines. Representative Smucker stated last week that he has had “many conversations” with Agriculture Secretary Rollins to discuss vaccine development. Governor Shapiro stated that the dissemination of a poultry vaccine for avian flu brings an array of issues, among them the potential effect on international trade. Because certain vaccines may mask infections, many countries currently ban the import of vaccinated poultry.


• USDA’s Animal and Plant Health Inspection Service (APHIS) has awarded a USD1.9 million three-year grant to a University of Missouri research team, led by Wenjun Ma, PhD, to fund the development of an avian flu vaccine. Dr. Ma, whose lab focuses on viral diseases with an emphasis on emerging zoonotic viral infections, stated on February 26, “Our goal is not only to control this outbreak, but later we want to eradicate this disease from the US.”