For Immediate Release:

Imported Butteroil Sugar Blends Keep Canadian Ice Cream Prices Low

Contrary to Statements of Dairy Farmers of Canada, Retail Prices Flat or Declining Since 1995 

April 6, 1998 (Toronto) -- Two of Canada’s largest ice cream manufacturers -- Unilever Canada Limited and David Chapman’s Ice Cream Inc. -- today responded to erroneous statements made publicly by the Dairy Farmers of Canada (DFC) regarding ice cream prices in the context of today’s hearing of the Canadian International Trade Tribunal on imported butteroil sugar blends. 

“The DFC have made statements about retail ice cream prices that are simply incorrect,” said Sean McPhee, spokesperson for the ice cream manufacturers. 

“The fact is the price of  premium ice cream has declined by more than five per cent since 1995, and the price of economy ice creams have remained flat over the same period, and this is without taking inflation into account,” said McPhee.  “During this same period, ice cream manufacturers are paying more for domestically sourced butterfat. Unilever’s Simcoe Ontario ice cream manufacturing facility, for example,  has experienced a 6.5 per cent increase in the cost of domestically sourced butterfat since 1995.” 

“The use of imported butteroil sugar  blends in the manufacture of ice cream has been essential to the ability of manufacturers to keep costs down and deliver competitively priced, quality ice cream to consumers,” said McPhee.  “An increase in the tariff on these blends as advocated by the DFC would lead to higher ice cream prices to consumers.” 

Canadian ice cream manufacturers have been urging the Federal Government to resist the protectionist pressure of the Dairy Farmers of Canada to unilaterally impose a new tariff on butteroil sugar blends in violation of the World Trade Organization.  According to Revenue Canada, based on the opinion of the World Customs Organization, the current tariff classification for butteroil sugar blends is correct. 

Butteroil sugar blends, currently imported from Europe, Mexico, the United States and New Zealand, are used selectively in conjunction with domestically sourced dairy ingredients to manufacture some ice creams. 

“Around the world industries are making necessary changes to adjust to freer trade.  Throughout North America, the dairy processing industry is rationalizing and consolidating into streamlined and specialized businesses to better meet the needs of price and quality conscious consumers,”  added McPhee.  “In contrast, dairy farmers want to further block the border, impede trade, forego product innovation and raise consumer prices.” 

Unilever Canada Limited manufactures ice cream through its Good Humor Breyers operating division.  Brands include Breyers All Natural, Breyers Classic, Good Humor, Richard D’s, Quebon and Viennetta.  David Chapman's Ice Cream Inc. produces Chapman's ice cream at its Markdale, Ontario manufacturing facility.  

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For information:

Sean McPhee
Sean McPhee & Associates Inc.

(416) 214-1232     

 

 

 

 

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