Thank you, Mr. Chairman.
I will respect the patience of the committee members, and I'll certainly stick to eight or nine minutes with my introductory remarks.
Mr. Chairman and committee members, the dairy processors welcome the opportunity of assisting your committee in its study of “Product of Canada” labelling. Our members support the objective of ensuring Canadian consumers get as much information as is practical on their food labels and that only foods, including dairy products, that are of Canadian origin should carry “Product of Canada” declarations.
Here's a little bit about the Canadian dairy processing sector. After the meat industry, we are the second largest employer in the food processing industry, with about 26,000 employees. There are almost 300 federally registered plants across Canada producing fluid milk, cheese, yogourt, ice cream, sour cream, and other standardized and non-standardized dairy products.
DPAC's members include Saputo, a public company; Agropur, the largest cooperative in the country; and Parmalat, an international company with a very successful Canadian operation. These three companies process 75% of all the milk produced in the country. Our other members include Gay Lea, a large Ontario-based co-op; Kraft Canada; the major Atlantic provinces co-ops, Scotsburn and Farmers; ice cream manufacturers like Unilever Good Humor; the two major yogourt manufacturers, Danone and Ultima; and other domestic and international cheese manufacturers.
Together these businesses take just over $4 billion worth of milk produced by Canada's dairy farmers and transform that milk into dairy products worth in excess of $12 billion in the Canadian market. Our customers include, of course, all the major retail, food service, industrial, and further food processors across Canada.
Mr. Chair and committee members, when it comes to the “Product of Canada” designation on dairy products, the dairy product regulations are very clear, and there are very detailed information requirements regarding the ingredients, the place of manufacture, and other information prescribed for all Canadian dairy products. The Canadian dairy processing industry goes to great lengths to display that information on its labels. Let me very briefly describe those requirements:
...every prepackaged dairy product shall be labelled on the principal display panel of the container—
—that's the front of the label—
—with (a) the common name of the dairy product; (b) a declaration of the process of manufacture shown in close proximity to the common name...; (c) a declaration of net contents as required by the Consumer Packaging and Labelling Regulations; (d) a percentage declaration of moisture and milk fat in cheddar cheese; (e) a percentage declaration of milk fat in the case of partly skimmed milk powder, dairy spread, and calorie-reduced butter; (f) a percentage declaration of skim milk powder and whey powder in the case of blended skim milk and whey powder and blended whey and skim milk powder; (g) a statement as to the source of the milk—
—what the dairy product consists of and whether it came from a cow, a ewe, or a goat.
There are four or five specifications required on the front panel of every Canadian dairy product, and
(k) the words “Product of” followed by the name of the country of origin, in the case of cheddar cheese prepackaged in Canada from imported bulk.
On the other part of the label, not the principal display panel or the front of the package:
...every prepackaged dairy product shall be labelled on any other surface, other than the bottom of the container, with (a) the list of ingredients and components—
—according to the food and drug regulations and the dairy product regulations—
...(b) the durable life date and instructions for proper storage of the dairy product...; (c) the words “Product of” followed by the name of the country of origin in the case of an imported dairy product; and (d) the words “Product of Canada” when packed for export from Canada.
...every prepackaged dairy product shall be labelled on any surface of the container....
There's another list of very prescriptive requirements: the registration number, for example, the establishment, where the dairy product was prepared; and the registration number of the establishment in which the dairy product was prepared, with some other specifications, plus a batch number, code number, and lot number identifying exactly the production of that product.
Finally, it reads:
The labelling requirements of this section do not apply in respect of prepackaged individual portions of dairy products that are for sale from automatic vending machines or mobile canteens, or that are served by a restaurant or other commercial enterprise [...].
As you can see, dairy products in Canada provide an immense amount of information already to the consumer. As well, DPAC and its members believe that when it comes to dairy products and the misuse of “Product of Canada” statements and labels, or in advertising, this is already covered by subsection 5(1) of the Food and Drugs Act, and that Bill C-51, which is before the House now, and the changes there clarify and strengthen that important legislation--especially since the word “origin” has been added.
In conclusion, we agree with this study and its objectives and the need to perhaps clarify the guidelines that will ensure consistency of use of “Product of Canada” statements across all food products.
Those are my introductory remarks. Thank you, Mr. Chairman.