Attention:  Political/Consumer 

For Immediate Release:

 

Removal of Provincial Trade Barriers A Win For Consumers
Ontario’s Bill 87 to Repeal Protectionist Edible Oil Products Act

  

November 29, 2001 (Toronto) -- Members of the Edible Oils Foods Association of Canada, producers of vegetable oil products, applaud the Ontario government for introducing Bill 87, the Food Safety and Quality Act, which will repeal the Edible Oil Products Act, providing producers with the opportunity to market new blended dairy/vegetable oil products to meet consumer demand.

The current Edible Oil Products Act makes it illegal to manufacture or sell in Ontario any imitation dairy product that combines a non-dairy oil or fat with a dairy product.  In September 1997, edible oil products and imitation dairy products were included in the scope and coverage of the Agreement on Internal Trade, thereby obliging all provinces to remove legislation that restricts the movement of dairy/vegetable oil products in Canada. 

“Ontario’s initiative to repeal this protectionist legislation should provide leadership to other provinces to abide by their commitments under the Agreement on Internal Trade,” said Doug Sparks, President of the Edible Oil Foods Association of Canada.  Opening up the market for blends will lead to new consumer products that borrow the best qualities from dairy and vegetable oil products.  For example, dairy ingredients blended with vegetable oil will deliver a uniquely flavourful spread product low in saturated fat.” 

Currently, only a few of the provinces allow the sale of a limited number of specified dairy/vegetable oil blend products.  Some provinces provide exemptions on a product-by-product basis.  In spite of Premier Landry’s statement to the Toronto Board of Trade this week that Quebec is a free trader, that province maintains some of the most restrictive protectionist legislation on food products in the country including a margarine colour restriction and a prohibition on blends. 

Based on the market share in other jurisdictions – blends have three per cent of the global dairy and edible oil market -- the immediate market potential for blends in Canada, in terms of direct sales, is $226 million including both retail and foodservice sales with corresponding direct employment of 2,000 new jobs.  These products also represent new market opportunities for Canada’s soybean and canola growers and export opportunities for dairy/vegetable oil blend producers. 

In addition to these economic benefits, numerous studies have demonstrated the health benefits of lowering the level of saturated fat, derived from animal sources, in the diet and substituting plant based unsaturated fats.  More than 40 per cent of Canadians are believed to have elevated cholesterol levels.  Almost one half of Canadian adults on a diet do so because of concerns about elevated cholesterol.  On a population basis, lower levels of saturated fat in the diet have been conclusively linked to lower levels of cardiovascular disease (CVD). 

Members of the Edible Oils Food Association of Canada include Archer Daniels Midland (ADM Agri-Industries Ltd.), CanAmera Foods, Canola Council of Canada, Innovative Foods Corp., Kraft Canada Inc., Margarine Golden Gate, Michca Inc., Margarine Thibault Inc., Nestlé Canada Inc., Ontario Soybean Growers, Parmalat Canada and Unilever Canada.

 

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For Information:

Sean McPhee
Sean McPhee & Associates, Inc.
|
416-214-1232

 

 

 

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