Keep container sizes the same say processors

Thursday, November 8, 2012

by SUSAN MANN

A coalition of food processors, farmers and municipal mayors wants the Canadian Food Inspection Agency to can its plans for axing food container size regulations.

Chris Kyte, president of the Food Processors of Canada, says a group of 12 to 15 representatives was in Ottawa Thursday meeting with about 15 MPs from various parties. They’re asking that rather than just changing food-packaging regulations the government works with industry to develop export markets and reforms so Canada and the United States have a level playing field.

Kyte says Canadian processors have a terrible time accessing the U.S. market. “Our products are held up at the border. They can wait two or three days.” Processors want the government to focus on fixing those types of difficulties instead of package size regulation changes.

Suzi Beck, spokesperson for the CFIA, says by email repealing food container size regulations means Canadian companies will no longer have to use only specific container sizes for foods. Announced in the 2012 federal budget, the change will allow for more industry innovation, choice for consumers and enable the agency to focus on the health and safety aspects of food production and regulation.

Container size regulations don’t have an impact on food safety, she says. CFIA is refocusing its time and resources on activities that improve food safety. “As part of this initiative, the decision was made to remove these non-food safety related regulations,” she explains.

The proposal to drop the regulations hasn’t gone through the regulatory amendment process yet, Beck says, noting CFIA is making decisions now on when the changes will be implemented. The agency asked stakeholders in May and June for their ideas on the timing of the change.

“A regulatory impact analysis statement is required as part of the regulatory process and the CFIA intends to complete this requirement as part of these changes,” she says.

Kyte says the regulatory repeal would affect packaging for maple syrup, honey, wine, canned and frozen fruits and vegetables, meat products like bacon, condiments and other foods.

Standard package sizes benefits consumers because it enables them to do accurate price comparisons, he says. American package sizes tend to be smaller, which may initially create the impression of better value at a lower price but that is frequently not the case.

Henry Iacobelli, president of Sun-Brite Foods Inc., says the government announced the proposed change in the budget without any industry consultation. “It was a total surprise to everybody. Nobody knew anything about it.”

Sun-Brite Foods processes tomatoes and beans, such as kidney and black beans and chickpeas, in facilities in Ruthven and Toronto. It employs 500 to 550 full time people, he says.

Iacobelli says the proposed changes “only benefits the Americans, not Canadian processors or farmers.”

Canadian companies have equipped their facilities to package foods in the container sizes specified in CFIA regulations. Kyte says the change will put food processors in Canada at a competitive disadvantage because it will require them to adopt American sizes and formats. In addition, the change will stimulate an influx of non-standardized American products into Canada.

Kyte says Canadian companies will have to spend money retooling facilities to meet American standards “in our own market.” Kyte says he doesn’t have a dollar figure on how much it would cost Canadian companies to retool.

Iacobelli says “we will have to compete with all the outsiders. The Americans or anybody that’s going to be coming in will have a feast because they don’t have to invest anything” while Canadian companies will be scrambling trying to retool and get ready for the new rules.

Kyte says many food processors in Canada will be forced to make tough decisions on whether to retool here or move production to the U.S. And if food production leaves Canada, local farmers will lose market opportunities.

Deregulating food package sizes will lead to a slow erosion of companies in Canada, he explains. “If you look at the history so far of where the multinational (food companies) have moved their production, it certainly hasn’t been into Canada.”

Food processing plants buy 34 per cent of Canada’s farm production, Food Processors of Canada says in a press release. Since 2007, 13,500 food manufacturing jobs have been lost in Canada as processing plants closed and relocated to the U.S. or Mexico.

Al Krueger, executive assistant for the Ontario Processing Vegetable Growers, says “the market share is our processors to lose here in Canada. In the end, do our processors have to meet every can size that’s out there because then you just can’t do it.” BF