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For Immediate Release: Ice
Cream Manufacturers Applaud Trade Tribunal Decision on Butteroil Sugar Blends Imported Blends
Keep Consumer Prices Low July 6, 1998 (Toronto)- Two of Canada's largest ice cream manufacturers -- Unilever Canada Limited and David Chapman's Ice Cream Inc.-- today congratulate the Canadian International Trade Tribunal (CITT) for its decision upholding the legitimacy of the importation of butteroil sugar blends. "The decision acknowledges that the importation of butteroil sugar blends is both legal, under the rules of the World Trade Organization, and commercially essential," said Sean McPhee, spokesperson for the ice cream manufacturers. "The fact is the Canadian milk supply management system does not adequately serve single purpose ice cream manufacturers because, without imported butteroil sugar blends, we do not have access to a reliable supply of reasonably priced butterfat." 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. The CITT found that the average cost to food processors of the butterfat in the butteroil sugar blends in 1997 was about $5.20 per kilogram. Had processors such as ice cream manufacturers purchased this butterfat domestically, it would have cost them $6.25 per kilogram. As a result, processors using imported butteroil sugar blends reduced their cost of butterfat in 1997 by approximately $3.2 million. For ice cream consumers, these manufacturing cost savings have resulted in lower prices. Since 1994, premium ice cream prices have declined by 4.5 per cent while the price of economy ice cream has declined by two per cent. In addition to providing an inexpensive source of butterfat, the blends also help maintain continuity of supply for single purpose ice cream plants which often experience cream shortages under Canada's restrictive and inflexible milk supply management system. Single purpose ice cream plants are those which are not owned by a dairy. In Ontario, for example, these plants are prohibited from sourcing more than 50 per cent of their butterfat requirements from whole milk. The federal government will now consider the report's findings and is inviting interested parties to submit their views to the Minister of Agriculture and Agri-Food Canada by July 24th. "Ice cream manufacturers strongly urge the government to maintain the status quo on butteroil sugar blends in the interest of Canadian manufacturers and Canadian consumers," added McPhee. Unilever Canada Limited manufactures ice cream through its Good Humor Breyers operating division. Brands include Breyers All Natural, Breyers Classic and Good Humor. David Chapman's Ice Cream Inc. produces Chapman's ice cream at its Markdale, Ontario manufacturing facility. -30- For further information: Sean McPhee |
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