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Regulatory Constraints to Growing Canola Markets ~ A Canola Processor Perspective ~ July, 2005 ~ Pat Van Osch Canbra Foods. Regulatory Categories. Domestic International. Domestic Regulatory – Existing “Product Barriers”. Yellow Margarine in the province of Quebec

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Regulatory Constraints to Growing Canola Markets~A Canola Processor Perspective ~July, 2005~Pat Van OschCanbra Foods

regulatory categories
Regulatory Categories
  • Domestic
  • International
domestic regulatory existing product barriers
Domestic Regulatory – Existing “Product Barriers”
  • Yellow Margarine in the province of Quebec
  • Provincial limitations on the marketing of products that are a blend of Canola Oil and Dairy products
  • Limitations on Terminology usage on product descriptions
  • Federal Regulations that restrict the adding of vitamins and minerals to vegetable Oil base products
  • Limited Health/Nutritional claims
  • These regulations discourage innovation and product development that would increase consumer choice and help consumers develop improved nutritional diets!
domestic regulatory upcoming and under consideration
Domestic Regulatory – Upcoming and Under Consideration
  • New food labeling in effect Dec 12, 2005
    • An increase awareness of healthy diets will benefit Canola Oil
  • Canada Food Guide
    • Looking for recognition of essential fatty acids in the diet.
  • Trans Fat task force
    • Must keep focus on the combination of Trans and Saturated fats
    • Could create new opportunity for canola oil - IE: Partially Hydrogenated frying applications
    • But, may have a negative effect in other areas - IE: Baking products
  • Increased Traceability/IP of food products
    • Expect ongoing increase demands in this area
    • Should let commercial relationships determine requirements/value
domestic regulatory industrial uses
Domestic Regulatory – Industrial Uses
  • Bio Diesel
    • Lot’s of interest in North America
    • Europe growth is significant
    • New policies and regulatory provisions will be required as part of Canada’s renewable fuel initiative
  • Industrial Seed Varieties
    • Must be very cautious as to how we manage
    • Understand the need, but must assess the risk and take appropriate steps to manage.
    • We don’t need a Starlink issue in the Canola industry
domestic regulatory other
Domestic Regulatory – Other
  • Environmental
    • Increasing demands and expectations
    • COPA committee has 14 items they are addressing
    • Look for science based requirements and that North American/World standards be taken into consideration when developing new regulations as we need to compete in these world market.
    • Not yet sure of what, if any, impact Kyoto agreement will have
  • Transportation
    • Working through the WCSC
    • Focus on having competitive railway environment
      • With other North American rail movements
      • Like products to similar destinations (Seed and Oil to Vancouver)
international regulatory tariffs and taxes
International Regulatory – Tariffs and Taxes
  • COPA has consistently looked for parity of all products with a movement towards “zero”. Parity would be with like products (Canola Oil, Soybean Oil, Palm Oil, etc) and within Canola components ( Seed and Oil)
  • Many countries still have some form of Tariff or Tax that favor other products or components over canola oil
  • COPA is working closely with oil seed processing associations in many other countries to bring focus to a “level playing field”. Also very engaged with Canadian negotiators.