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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. --
30 -- For
information: Sean
McPhee
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