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Regulatory Categories

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 Categories

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

  2. Regulatory Categories • Domestic • International

  3. 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!

  4. 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

  5. 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

  6. 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)

  7. 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.

  8. Thank You.

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