clipped from the recent Gallon newsletter.
Pamela
In 2007 the Prime Minister announced that any
product labelled as 'Product of Canada' must be 'grown in Canada, processed in
Canada, and packaged in Canada by Canadian farmers and producers. The policy
decision arose from a media campaign, apparently led by the CBC, to overturn the
then existing rule that a Product of Canada description could be applied to any
product that contained 51% of Canadian value-added content. Under the old rule a
marmalade, for example, could be labelled as 'Product of Canada' as long as it
was made in Canada from imported oranges and sugar, with the Canadian effort
comprising more than 51% of the product's value. The critics felt that 'Product
of Canada' should mean that a product is entirely Canadian. The Prime Minister
apparently agreed and achieved a great deal of positive press for introducing
the new initiative.
As we pointed out at the time, the new rules
have made it virtually impossible to legally market an apple pie as a 'Product
of Canada' because there is not enough Canadian grown and processed sugar to
make a commercial apple pie that meets the rule of no more than 2% foreign
content in a 'Product of Canada' product. Of course, the problem extends to much
more than apple pie: the major result of the new 'Product of Canada' rule has
been that this label has virtually disappeared from retail store shelves.
Farmers who grow foods commonly incorporated into processed products had hoped
to benefit from a resurgence of interest in products of Canada. Instead,
products labelled as 'Product of Canada' have disappeared and Canadian farmers
are forced to compete with foreign product without the benefit of a 'Product of
Canada' label.
The Canadian Food Inspection Agency has
noticed that the new 'Product of Canada' labelling rules are not working and has
initiated yet another consultation on the topic. This month they plan to launch
an online consultation to consider changing the rules to exempt ingredients
which are difficult to find in Canada. This will mean that a 'Product of Canada'
apple pie, and thousands of other products which have been disqualified from a
'Product of Canada' label since the government's ill-conceived 2008
policy.
Product of Canada food labels are important
not only to consumers but also to farmers, food processors, including smaller
companies, and retailers. Buying Local means not only buying local fresh product
but also buying locally processed products whenever possible. Consumers need
information that will help them buy products that are made from as much Canadian
content as is reasonable. For example, in an apple pie, if the apples are
Canadian and the flour is Canadian, it is GL's view that most reasonable people
would call it a Product of Canada apple pie.
Ridiculously strict labelling requirements
inhibit consumer choice and hurt Canadian farmers. It is surprising to us that a
Cabinet that claims to support smaller government and less regulation is
allowing its bureaucracy to spend time on exempting "specific ingredients which
are difficult to find in Canada" from labelling rules. Is this a priority for
spending of tax dollars? But after making policy on the fly and finding that bad
policy hurts farmers and does not help consumers, maybe having a second
consultation within two years on the same topic is the only way out of the mess
that should not have been created in the first place.
GL urges readers to sign up for the Canadian
Food Inspection Agency consultation on 'Product of Canada' labelling rules. We
think that a sensible policy would state that a product qualifies for a 'Product
of Canada' label if the principle ingredients are grown in Canada. Do we need
more complexity than that?
Colin Isaacs
Editor
By the way, do not be fooled by the fact that
CFIA calls its rule 'guidelines'. These 'guidelines' exist to guide inspectors
in making decisions about misleading advertising, which is a serious offence in
Canada. In effect, the 'guidelines' are rules with which all food processors and
retailers must comply.
THE GALLON ENVIRONMENT LETTER
Canadian Institute for Business and the Environment
Fisherville, Ontario, Canada
Vol. 15, No. 1, March 26, 2010
Honoured Reader Edition
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