Thank you.
Food and Consumer Products of Canada welcomes this opportunity to contribute to the Standing Committee on Agriculture and Agri-Food’s study on Growing Forward 2, specifically as it relates to meeting consumer demands.
We are the voice of Canada’s leading food, beverage, and consumer products companies that manufacture or distribute the products that sustain Canadians and enhance their quality of life. Founded in 1959, our industry association is a trusted source of information about the industry and the products that people enjoy and rely on every day. From an employment perspective, our industry provides high-paying jobs to approximately 300,000 Canadians in both rural and urban areas in every region in the country. We are, in fact, Canada's largest employer in manufacturing, larger than auto and forestry. Our members represent almost 80% of the products you find on grocery store shelves.
The Canadian food processing industry, as stated earlier, is a key component of the food value chain. We depend on Canadian farmers to grow crops for our 6,000 manufacturing facilities across the country. Likewise, Canadian farmers depend on us to purchase the crops that they grow. FCPC member companies are committed to policies and programs that contribute to a competitive, profitable, and sustainable agrifood industry in Canada.
My presentation is divided into two sections. The first discusses what the food processing industry is doing to meet consumer demands and the second is how the government can help reinforce our efforts through Growing Forward 2.
First of all, how is the industry meeting consumer demands? Through food safety. First and foremost, Canadian consumers rightfully demand that the food they eat is safe. Food safety is, and will remain, the number one priority of our member companies. Our industry is proud that Canadians enjoy some of the safest food in the world. FCPC fully supports the recommendations in the Weatherill report, in addition to the government's ongoing efforts to modernize and simplify Canada's food safety laws and regulations.
And there's consumer education. Consumers are increasingly interested in learning about the food they eat as they take greater control of their health through diet. To help consumers make more informed food choices, FCPC and our member companies have made terrific strides in helping promote nutritional literacy among Canadians. For example, since 2005 food manufacturers have provided the government-regulated nutrition facts table on all food products you find on grocery store shelves. Starting in August 2012, consumers will also see labeling specific to allergens on food products.
In order to help consumers better understand the nutrition facts table, FCPC and Health Canada launched a collaborative and award-winning initiative called the nutrition facts education campaign in October 2010. This is a multimedia educational outreach initiative that is based on a partnership between 34 member companies and Health Canada. The purpose is to help Canadians make more informed food choices for themselves and their families. Building on the great success of phase one, phase two has now been launched.
Consumers are also increasingly demanding that their food be grown and manufactured in an environmentally responsible way. Industry needs to keep pace with these demands at the food processing level, and FCPC member companies are doing their share.
We recently conducted a survey to identify our members' environmental policies in order to promote and showcase our industry's collective achievements in environmental sustainability. The survey revealed that the majority of our member companies have environmental sustainability strategies in place focused on waste reduction, sustainable packaging, water conservation, energy conservation, and greenhouse gas reduction.
As for healthier-for-you products, Canadian consumers are also increasingly interested in a wide range of selection of healthier-for-you and niche products, as mentioned earlier, as they become more proactive in managing their health through diet. A recent FCPC survey revealed that 92% of our member companies have launched or reformulated products that you find on grocery store shelves to make them healthier. For example, we have reduced sodium and we have reduced transfat in many of our products. We're committed to continuing our efforts in these and other areas.
Consumers are also increasingly demanding products with health attributes, referred to as functional foods. The global functional food market is growing at a rate that is outpacing the traditional processed food market. This has become a multi-billion-dollar industry, and estimates within Canada suggest that the Canadian functional food industry has the potential to grow to $50 billion U.S. This represents an enormous opportunity for our sector, and it is also the future of Canadian food processing. Food processors in Canada, however, are discouraged from bringing new, value-added, healthier-for-you products to market. This is because current food regulations are unable to accommodate the types of products that consumers demand.
My second part briefly touches on what government can do to support our efforts and meet consumer demand.
It is our view that the most important issue that needs to be addressed in Growing Forward 2 is to rapidly modernize Canada’s food regulations. This is needed if we want to meet consumer demand for innovative, healthier-for-you products, which are readily available in most industrialized countries. To provide perspective, our food regulatory framework has not been updated in a meaningful way since we were watching Hockey Night in Canada on Saturday nights on black and white television. These regulations have not kept pace with changing technologies and the development of new products, and the impact of Canada's regulations are felt by Canadian consumers because there is less choice, and also it has an impact on business in Canada.
There is also an impact on farmers. Without a Canadian food-processing industry to buy the food the farmers grow, farmers need to find new markets farther away. Farmers who sell directly to retail outlets face the same regulatory barriers as the food industry. Moreover, food security in this country depends on food that is both grown and processed in Canada.
In summary, I hope this presentation has provided a sense of how FCPC and our member companies are stepping up to the plate and providing the types of products that consumers demand. The most important way that Growing Forward 2 can meet the demands of consumers, as well as support the future of Canadian farmers and food processors, is to prioritize the modernization of Canada’s food regulations.
Thank you.