Food Processing Industry, Agriculture and Mayors aligned to Keep Food Jobs in Canada
Coalition asks for review of pending changes to food packaging regulation and development of export markets not just changes to increase American imports
OTTAWA, Nov. 8, 2012 /CNW/ - Food processors, agricultural organizations and mayors from across the country are gathering on Parliament Hill today to ask the government to review pending changes to food packaging regulation. They say the changes announced in the budget will increase American imports into Canada and over time put food processing and agricultural jobs at risk.
Canadian manufacturers and growers (farmers) have invested in the current stable regulatory environment, so machines and equipment are tooled to current size. "This change would put food processing in Canada at a competitive disadvantage because it will require them to adopt American sizes and formats," says Chris Kyte, President, Food Processors of Canada. "The government should work with industry to understand the full impact and develop a complete package of reforms so we have a level playing field and can continue to grow our export markets."
The coalition wants a holistic review of regulations to ensure we are stimulating opportunities for export markets. "This new change to repeal standard packaging sizes in Canada will only serve to stimulate an influx of non-standard American products into Canada," says Kyte. "We want to see emphasis on growing opportunities for Canadian fresh and further processed food."
Many food processors in Canada will be forced to make tough decisions on whether they reinvest and retool here or move production to the United States. If food production leaves Canada, local farmers will lose market opportunities - both domestic and export sales.
For example, last week in Toronto the 60-year-old Christie cookie plant announced it was closing, sending most of their production to Mexico and the United States, while some production was retained in Canada. This will throw 550 people out of work and will accelerate Canada's $6.5 billion food trade deficit with the United States. In the last five years more than 80 food processing plants in Canada have closed with many moving production to larger American plants and those in Mexico.
These changes affect a variety of food products including honey, wine, meat products, maple syrup, canned fruit and vegetable products and more.
Deregulating consumer food packages supports neither consumers nor Canadian farmers and food processors. In fact, deregulation distorts the market in favour of imports and confuses consumers. Right now, standard packaging allows Canadians to do accurate price comparison-shopping. American package sizes tend to be smaller which may initially create the impression of better value at a lower price, but that is frequently not the case.
Food processing plants buy 34% of Canada's farm production which means communities will lose out through loss of jobs as well. In fact, since 2007, some 13,500 food manufacturing jobs have been lost in Canada as processing plants have closed and relocated to the United States or Mexico.
This group of concerned food processors, growers and mayors of agricultural communities are speaking out about the impending impact to their industries this week in Ottawa and are available for media interviews.
For more information, visit www.keepfoodjobsincanada.ca.
SOURCE: Food Processors of Canada
Danielle Crawford
Smithcom
(289) 828 3507
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