Ottawa, October 20, 2008 - Regulatory changes to the Food and Drugs Act and the Canadian Agricultural Products Act that come into effect on December 14, 2008 will significantly change the way cheeses sold in Canada must be made.
Earlier today Kraft Canada Inc., Parmalat Canada Inc.and Saputo Inc. (KPS) jointly filed an Application in the Federal Court of Canada challenging these new regulations.
"The regulations are bad for consumers, bad for cheese makers, bad for dairy farmers and bad for Canada," said KPS spokesperson Yvan Loubier. "KPS is challenging the new regulations to protect the integrity and future of Canadian cheese."
The regulations will require cheese makers to strictly limit the use of natural constituents of milk, frequently referred to as modified milk, or dairy ingredients.
"The clear intent of these new regulations is additional revenue for dairy farmers," explained Loubier. "Unfortunately any gains for dairy farmers will likely be short-lived. The new regulations will hurt both cheese makers and dairy farmers. They will increase the price of cheese to consumers, may reduce cheese consumption and threaten the viability of Canada as a cheese making nation. Canada's dairy processors are the primary market for the milk produced by Canadian dairy farmers; the less cheese that is eaten by Canadian consumers, the less milk that will be needed from Canadian dairy farmers."
The government's own analysis of the impact of these regulations clearly states that even though the regulations will not make cheese taste better or improve its nutritional quality; the changes prescribed will likely see Canadian consumers pay significantly more for the cheese they purchase at their local grocery store.
"The irony," says Loubier "is that the Canadian Food Inspection Agency recognizes that it is impossible to determine if the finished cheese that consumers buy in fact complies with the new regulations."
The cheese makers also believe the new cheese regulations are in contravention of Canada's international trade obligations and agreement.
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To arrange an interview with Yvan Loubier, contact:
Gord Garner
613 797 5964
ggarner@globalpublic.com
About Kraft Foods
Kraft Foods (NYSE: KFT) is one of the world's largest food and beverage companies, with 2007 revenues of more than $37 billion. For more than 100 years, Kraft has offered consumers delicious and wholesome foods that fit the way they live. Kraft markets a broad portfolio of iconic brands in more than 150 countries, including nine brands with revenues exceeding $1 billion: Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees, Milka chocolates and LU biscuits. Kraft is listed in the Standard & Poor's 100 and 500 indexes. The company is a member of the Dow Jones Sustainability Index and the Ethibel Sustainability Index. For more information, visit the company's web site at www.kraft.com. In Canada, company brands include Kraft Dinner macaroni and cheese, Christie cookies and crackers, and Delissio pizza.