1. 936081 Airport Road, Mansfield,Ontario, L0N 1M0 Tel: (705) 435-2041 / Fax: (705) 435-1467 president@legalsuites.com

2. continued… Provide a glimpse into Federal regulatory and other initiatives. The objective is to…  Food Allergens  Sodium Reduction  Trans Fat Ban  Product of Canada

4. Ranks 3 rd in Canada Agricultural Sector… Just after grains and red meat. 15% Represents 15% of the Canadian food and beverage sector. $13.6 Generates sales of about $13.6 billion. Foot Print… 452272452 dairy processing plants, (272 being federally inspected). 22,730Provided 22,730 jobs. 1.41.4 million head. continued… Resource Canada’s Dairy Industry at a Glance. Agriculture Agri-Food Canada

5. Processing Significance… 38.5% Fluid milk represents 38.5% of milk production. 61.5% Manufactured dairy products represents 61.5% of milk production (e.g. butter, cheese, yogurt and ice cream) 667 667 varieties of cheese (goat, ewe, and cow). 1% Organic milk is at 1% of total output. continued… Resource Canada’s Dairy Industry at a Glance. Agriculture Agri-Food Canada

7. New Federal Allergen Regulations…  Coming into force August 4, 2012.  The Canadian Food Inspection Agency, (CFIA), will expect all food in stream of commence by then to be compliant with new regulations.  Made under the Federal Food and Drug Regulations.  Priority food allergen, gluten sources and sulphites, (includes milk), are formally defined.  Applies to all prepackaged foods with very few exemptions, (e.g. beer). continued… Note A food allergen is considered a protein or fraction thereof from a name allergen or gluten source.

8. New Federal Allergen Regulations…  Common allergen, gluten and sulphite names to be delcared in list of ingredients or in an allergen contains statement.  Cautionary allergen statements, (a.k.a. “may contain” allergens), are not in included in new regulations.  The use of such cautionary statements should be made within current CFIA and Health Canada Guidelines. It is anticipated that HC will in the near future formalize further guidance on cautionary allergen statements. continued…

9. Food Allergen Definition [ : Food Allergen Definition [B.01.010(6) - FDR] : “food allergen” means any protein from any of the following foods, or any modified protein, including any protein fraction, that is derived from any of the following foods: continued… Reference Reference FDR = Food and Drug Regulations

10. Gluten Source Definition [ : Gluten Source Definition [B.01.010(6) - FDR] : “gluten” means any gluten protein from the grain of any of the following cereals, or from the grain of a hybridized strain that is created from at least one of the following cereals: It includes any modified gluten protein, including any gluten protein fraction, that is derived from the grain of any of the cereals referred to above or from the grain of a hybridized strain referred to above. Question Is barley flour when present in wheat flour a gluten source?Answer YES. By FDR definition. continued…

11. Sulphite Definition: Sulphite Definition: “sulphites” means one or more food additives that are listed exclusively in column I of item 21 of the table to paragraph B.01.010(3)(b), see below, and are present in a prepackaged product. continued…

12. or Focus The new regulations require that food allergens, gluten sources and sulphites be declared in the list of ingredients or a contains statement by their common name.

14. “Sodium Reduction Strategy for Canada - Recommendations of the Sodium Working Group”  Recommendations came out in 2010, after review period of about 2 years.  Targets were revised in January 2011, after stakeholder consultations.  The strategy is broad based, calling on provincial and territorial governments as well to participate with public health and nutrition, responsibilities.  Targets can be adjusted as may be needed.  Touted as a “structured voluntary approach”. Sodium Reference Standard The current FDR reference standard for sodium is 2,400 mg per day. continued…

15. Recommended Intake Levels…  An interim target of 2,300 mg per day, (Tolerable Upper Intake Level), on average is set to be reached by 2016.  The ultimate goal is that Canadians intake no more than the current Adequate Intake level of 1,500 mg per day, or as may be appropriate for age and gender.  Goals beyond 2016 to be set based on monitoring to be done towards the first interim goal.  Health Canada is working on establishing targets for specific foods. Draft interim milestones have been set for 2012 and 2014. continued… Current Average Sodium Intake 3,400 mg per day

16. Dairy Food Reductions (sodium)… continued… Food Category Draft 2012 Milestone (SWA) mg sodium/100g Draft 2014 Milestone (SWA) mg sodium/100g Draft 2016 Targets SWA mg sodium/100g Maximum mg sodium/100g RICOTTA150145130190 PROCESSED CHEESE (REGULAR)1470132510401670 HARD GRATED CHEESE2065184013801880 MOZZARELLA695685670720 SALTED BUTTER580490400800 SWA Sales Weighted Average

17. Consequential Changes (recommended)…  The current 2,400 mg Reference Standard to be amended to 1,500 mg.  The flexibility to determine a serving size, may be reviewed with the idea of greater conformity to regulated Reference Amounts for comparative purposes.  The idea of standardized nutrition labelling for menu items in restaurants is recommended. continued…

19. Trans Fat Ban…  This is not law yet!  It is “voluntary” unless food industry does not meet targets. It could then be formalized as law.  Trans fat restrictions apply to all foods sold in Canada, regardless of the level of trade. The objective on compliance is on finished food, but effective control via inputs is necessary.  Trans fat reduction in foods sold in Canada have been observed by Health Canada. continued… Note: Note: Health Canada is monitoring the voluntary compliance of the Trans Fat Task Force recommend ations which have been adopted by Parliament. Possible legislation could result.

20. Trans Fat Ban…  Trans fat limitation based on nature of food…  Limitation applies to foods containing man-made trans fat whether used with or without other foods that naturally contain trans fat, (e.g. dairy foods).  Limitation does not apply to naturally occurring trans fat (e.g. milk, butter, etc.), if not processed with man-made trans fat. continued… Note: Note: BC has trans far ban for foodservice relate foods. 2% of total fat for vegetable oils and soft, spreadable margarines 2% of total fat for vegetable oils and soft, spreadable margarines 5% of total fat for other foods 5% of total fat for other foods

21. continued…  Why declare 0.2 f trans fat?  Because of nutrition labelling rounding rules, (FDR).  When food is not trans fat free, amount of trans fat is delcared to nearest 0.1 g increment. Trans Fat Free (FDR): Trans Fat Free (FDR): Less than 0.2 g trans fat, less than 2 g trans fat and saturated combined and no more than 15% of energy from saturated and trans fat combined.

22. continued… Mixed dairy and man-made trans fat. Mixed dairy and man-made trans fat. Trans fat is 4.5% of total fat. Trans fat is 4.5% of total fat.  Meets trans fat 5% restriction. 0.5 g Trans

24. Federal Guidelines:  Canada’s guidelines, as administered by Industry Canada and adopted by CFIA, has been updated in 2008 to include greater Canadian content than the previous 51% value added rule.  “Product of Canada” claims is now based on the food, “all or virtually all”, being Canadian content. continued… minor or very little amounts that would not influence the claim is generally considered 2% or less the of total weight of the food

25. Federal Guidelines: Made in Canada from imported ingredientsfrom domestic and imported ingredients  “ Made in Canada ” claims will be permitted for products “substantially transformed” in Canada, but will need to include a qualifier with the claim such as “ from imported ingredients ” or “ from domestic and imported ingredients ” as case may be. Roasted in CanadaPackaged in CanadaDistilled in CanadaProcessed in Canada Product of CanadaMade in Canada  “ Roasted in Canada ”, “ Packaged in Canada ”, “ Distilled in Canada ” and “ Processed in Canada ”, are examples of claims that are viewed as being district from “ Product of Canada ” and qualified “ Made in Canada ”, that may be used if factual. continued… Enforce- ment CFIA would enforce these guidelines under Section 5 of the FDA or Section 5 of the CPLA.

26. continued…

27. continued… Questions? Product of Canada  Can this product be claimed “Product of Canada”? Made in Canada  Can this product be claimed “Made in Canada”? Processedin Canada  Can this product be claimed “Processed in Canada”?