Food and Beverage News and Trends - December 8, 2025

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

San Francisco sues major food companies over ultra-processed foods (UPFs). The San Franciso City Attorney filed a lawsuit targeting leading food manufactures, alleging marketing and sales practices have contributed to chronic disease and significant public health costs for local governments and seeking restitution for public health costs, civil penalties and injunctive relief. While UPFs have been the subject of the Make America Healthy Again (MAHA) initiative and private litigation, this action marks the first time a government has initiated this type of lawsuit. To learn more about UPFs and how to minimize risk, register for the DLA CLE Webinar on December 18: The MAHA moment: Navigating the legal landscape of UPFs.

FDA’s new GRAS rule is under OMB review. On December 1, the Food and Drug Administration (FDA) sent a proposed rule, “Substances Generally Recognized as Safe,” to the Office of Management and Budget’s Office of Information and Regulatory Affairs for interagency review. Currently, food manufacturers are allowed to use substances that have not undergone formal safety review through the voluntary GRAS notification process by self-affirming their safety. The proposed rule, if finalized, would effectively end such self-affirmations by requiring the mandatory submission of GRAS notices for human and animal food substances, including substances added indirectly through food contact material (e.g., packaging). Exemptions would be made only for certain substances, such as those already listed by FDA in a regulation or those that are listed in FDA’s GRAS notice inventory as having received a "no questions" letter.

Rollins: expect farmer aid within weeks. United States Department of Agriculture (USDA) Secretary Brooke Rollins announced on November 24 that the government “expects to announce an aid package for US farmers within two weeks and a deal on Chinese soybean purchases.” The American Farm Bureau Federation called such aid “urgently needed” due to higher input costs and lower crop prices. The November Ag Economists’ Monthly Monitor stated that “one hundred percent of economists argue tariff-aid payments will keep fertilizer prices high.” In a November 26 letter to Secretary Rollins, a diverse group of organizations stated that “if USDA issues payments, it should target funds based on need – using clear, accurate eligibility and economic data – and do so in a fully transparent manner.”

Meanwhile, on November 26, Reuters reported that China has signed contracts to buy at least ten more cargoes of US soybeans worth around USD300 million, a day after the presidents of both countries discussed trade issues via telephone. Overall, the total amount of soybeans purchased from the US by China this season remains well below the 12 million tons it reportedly committed to buying in early November. The late surge in buying arises from China’s suspension of certain Brazilian soybean shipments after the General Administration of Customs discovered ten tons of contaminated wheat mixed into a cargo of Brazilian soybeans. The wheat had been treated with a pesticide that in China is approved solely for coating seeds.

State Attorneys General sue over SNAP guidance. On November 26, a group of 22 state attorneys general, led by New York Attorney General Letitia James, filed suit in the US District Court for the District of Oregon, charging that USDA guidance about eligibility for Supplemental Nutritional Assistance Program (SNAP) benefits under the One Big Beautiful Bill Act (the Act) unlawfully excludes many lawful permanent residents. That guidance, issued to the states in late October, excludes certain non-citizens who entered the US through humanitarian protection pathways from the program. The plaintiffs’ complaint states that the guidance “goes beyond the Act, arbitrarily excluding from SNAP many lawful permanent residents who remain eligible under the statutory scheme established by Congress.” The suit also argues that the guidance arbitrarily changed the so-called exclusionary period, during which state SNAP agencies are able to address reporting errors that affect their funding from the statutorily provided 120 days to one day. The plaintiffs are asking the court to, among other things, vacate the guidance and permanently enjoin its implementation. This litigation is in its earliest stages. Read the complaint here.

Canada introduces digital certificates to streamline grain exports to Mexico. The Canadian Food Inspection Agency (CFIA) has begun issuing electronic phytosanitary certificates for grains and grain products shipped to Mexico, replacing traditional paper documentation. These electronic certificates confirm that shipments meet Mexico’s plant health requirements, are pest-free, and comply with inspection standards. Moving to electronic certification is expected to reduce fraud risks and eliminate delays caused by mailing physical documents. Canada and Mexico plan to explore expanding the system to other agricultural and food products, further enhancing trade between the two countries. 

With January 2026 public meeting, FSIS restarts process of reducing salmonellosis attributable to poultry. The USDA’s Food Safety and Inspection Service (FSIS) will hold an in-person public meeting on January 14, 2026 in Washington, DC to explore practical strategies for reducing Salmonella illnesses linked to poultry products. The meeting is the latest development following USDA’s withdrawal earlier this year from the Salmonella Framework for Raw Poultry Products, a proposed rule and proposed determination that arose from years of research and stakeholder input to assess its approach to addressing Salmonella illnesses associated with poultry product. Under that framework, raw chicken and turkey products containing any type of Salmonella at or above ten colony forming units (CFU) per gram/ml and any detectable level of at least one of the Salmonella serotypes that are of public health significance would be considered to be adulterated and would be blocked from entering commerce. This year – most recently on December 1 – FSIS has also repeatedly delayed implementation activities arising from a related, final determination for Salmonella in not-ready-to-eat, breaded, and stuffed chicken products. In a December 2 notice announcing the meeting, FSIS stated that it “is seeking input on how to address Salmonella through better use of data, alternative performance standard parameters, and policy options that reflect both public health goals and industry realities.” Register for the January meeting here.

FDA withdraws proposed rule requiring cosmetics makers to test talc for asbestos. In a surprise move, on November 26, the FDA withdrew a proposed rule that would have required manufacturers of talc-containing cosmetic products to test their products, or the talc components of those products, for asbestos and to maintain records showing their compliance with the rule. FDA’s decision is turning a spotlight on the use of talc in products intended for human consumption. The agency has categorized the mineral’s use in foods as Generally Recognized As Safe (GRAS). It is widely used in numerous types of food products, including as an anti-clumping and anti-caking agent in products like shredded cheeses, dried beans, dried fruits, rice, candies, and salt. It also provides bulk and texture to chewing gums, helps keep salt and seasonings dry, and is used as a brightener in food colorants, in addition to being widely used in pharmaceutical products. An FDA spokesperson told the New York Times that the agency intends to submit a new, more comprehensive proposed rule governing the use of talc, but did not provide further details. Beginning in 2027, the European Union will ban all uses of talc in cosmetics under the Cosmetics Regulation. The United Kingdom is exploring the possibility of a similar ban.

DNA testing for beef cattle now available in Canada. Canadian beef producers will soon have access to domestic DNA testing services due to a new partnership between the Global Institute for Food Security at the University of Saskatchewan and the Canadian Beef Improvement Network. The initiative, announced at the trade show Canadian Western Agribition, means producers no longer need to ship tissue samples abroad for genotyping – a process critical for advancing genetic improvement in cattle. Funding for the state-of-the-art equipment came from Farm Credit Canada’s breeding acceleration program and Prairies Economic Development Canada. Industry leaders say the move will reduce delays, improve data security, and give producers faster, more reliable information in order to help guide breeding decisions.

Cloned meat remains subject to Canada’s novel food assessment. The Canadian federal government has confirmed, following a 2024 public consultation, that foods made from cloned cattle and swine will remain subject to the novel food assessment. There are currently no approved foods from cloned products on the Canadian market.

Nevada joins FSIS State Meat and Poultry Inspection Program. On November 25, the FSIS announced that Nevada has entered the State Meat and Poultry Inspection (MPI) program. This expands Nevada’s authority to inspect meat and poultry operations within the state, boosting market access for small processors and strengthening local food safety oversight. Nebraska Governor Joe Lombardo said the Nevada State Meat and Poultry Inspection Program “will significantly expand our local meat processing capacity, strengthen the supply chain, bolster Nevada’s agricultural economy, and ensure greater access to safe, locally produced food.” Nevada is the 30th state with an approved MPI program.

Food industry and consumer groups call for more funding for FoodNet. The Safe Food Coalition, a broad set of food companies, public health groups, trade associations, and consumer advocates, has written to Department of Health and Human Services Secretary Robert F. Kennedy, Jr. to urge him to continue investing in the Foodborne Diseases Active Surveillance Network (FoodNet) pathogen surveillance program. FoodNet, a collaboration among the Centers for Disease Control and Prevention (CDC), FDA, USDA, and ten state health departments, is the only surveillance system that actively looks for multiple foodborne diseases at the federal level. In July, the CDC made deep cuts to FoodNet, limiting its surveillance to only two foodborne pathogens, Salmonella and Shiga toxin-producing E. coli. Reporting requirements for six other pathogens – Campylobacter, Cyclospora, Listeria monocytogenes, Shigella, Vibrio, and Yersinia – became optional. “FoodNet offers a return on investment that justifies its price tag,” the letter states, noting that the program’s USD7 million annual cost is “several orders of magnitude lower than the economic impacts of the illnesses monitored by the program.” To maintain FoodNet and the CDC’s larger Food Safety Program, the coalition called for a 50 percent increase in funding for FY 2027. 

FDA conditionally approved drug for Screwworm. FDA approved a topical solution for the prevention and treatment of New World screwworm (NWS). This new drug – Exzolt Cattle-CA1 – is eligible for conditional FDA approval because it is intended to prevent and treat serious or life-threatening diseases in cattle, it addresses unmet animal health needs, and demonstrating effectiveness of the drug requires complex or particularly difficult studies. More specifically, this drug is conditionally approved for (1) the prevention and treatment of larval infestations and (2) for the treatment and control of cattle fever tick in beef cattle 2 months of age and older and replacement dairy heifers less than 20 months of age. It will be available by prescription only.

USDA creates new website to centralize federal information on New World screwworm. On November 21, the US Department of Agriculture (USDA) launched screwworm.gov, a website that will serve as a centralized hub for all NWS information available across the US federal government. The site offers resources for a wide range of stakeholders, among them livestock producers, drug manufacturers, animal health officials, and the general public. It also sets out the latest USDA-verified information on American preparedness efforts as well as response activities in Mexico. NWS is a highly destructive parasite that poses a serious threat to warm-blooded animals, chiefly affecting livestock and wildlife. Earlier this year, after NWS infestations were detected in Mexican cattle, the US suspended imports of cattle, horses, and bison from Mexico into the US. That suspension remains in effect. Read more of our coverage of the US and Mexican response to NWS here.

Avian flu update.

• USDA has confirmed that in the 30 days leading up to November 28, 89 US flocks were struck by H5N1, among them 41 commercial flocks in Indiana, Michigan, North Carolina, North Dakota, and South Dakota. The recent rise of cases in chicken, turkey, and duck operations reflects the virus’s pattern in recent years – a summertime lull followed by gradually rising numbers as winter approaches.
  
  
• Notably, there has not been a similar rise in H5N1 cases among dairy cattle. According to the Animal and Plant Health Inspection Service (APHIS), the last confirmed outbreak of H5N1 in US dairy cattle was found in an Idaho herd in October.
  
  
• US commercial turkey operations were among the hardest hit this fall, leading to a 40 percent rise in wholesale prices of frozen turkeys. However, higher retail prices failed to materialize. A 50-state survey conducted by the American Farm Bureau determined that retail prices for turkeys actually fell 16 percent compared to 2024, largely because grocers offered turkeys to shoppers as loss leaders. Factors other than bird flu, however, may impact future turkey supplies in the US, including avian metapneumovirus, which can impact farmers’ ability to rebuild flocks because it affects egg viability.
  
  
• Critteraid, an animal sanctuary in Summerland, British Columbia, confirmed that ten chickens died following an avian flu outbreak and another two chickens and five ducks were euthanized. The sanctuary reported that its peacocks tested negative for the disease and had not been exposed. The CFIA confirmed the peacocks were exempt from euthanasia and deemed safe. In a social media update, Critteraid explained that the exemption was granted after compliance with CFIA protocols, including biocontainment procedures, quarantine orders, declaring the facility an infected place, full cleaning and disinfection, and participating in CFIA-led meetings – successfully passing each stage before moving to the next.
  
  
• A study published on November 27 in the journal Science reports that a gene carried by avian influenza viruses makes them resistant to elevated body temperatures, allowing them to circumvent the protections conferred by fever. The study, conducted by researchers at the University of Cambridge and University of Glasgow, found that avian flu viruses that carry the PB1 gene, which plays an essential role in their replication, have the ability to withstand higher body temperatures while continuing to reproduce. See the study, Avian-origin influenza A viruses tolerate elevated pyrexic temperatures in mammals.