Canada Prepares National Regulations

Posted - September 9, 2008

Being “Canada Ready”

By Matthew Holmes, Managing Director of the Organic Trade Association in Canada

Like much of the world, the Canadian organic market is growing at a sometimes-breathless pace. With well over 20% annual growth, the Canadian organic market has been estimated at $1- to $3 billion per year. It is now more than a niche market, responsible for over 1% of all food and beverage sales in the country, and with a significant presence in national grocery chains and through private label product lines.

Considering Canada’s highly educated and environmentally-sensitive population, it is likely this market share will continue to grow. With the implementation of Canada’s Organic Products Regulations (OPR) on Dec. 14, 2008, the case for an upswing in consumer belief in organics is only stronger.

It is worth noting that Canada enjoys the strongest trade relationship with the United States of any country, powerful linkages to the rest of North and South America, an ever-growing Pan-Pacific and Asian trade, and strong traditional trading relationships with Europe’s biggest markets. Considering Canada is the fifth-largest agricultural importer in the world, no one in today’s global organic market should ignore this country’s potential.

This obviously begs the question: What are Canada’s new regulations all about, and what will you need to do to comply with them?

The answer to the first question is straightforward: Canada is in the final stages of implementing a mandatory, exclusive standard for all food and livestock feeds marketed within the country as organic. If your product is not certified to the new Canadian standards by an accredited certifier (one recognized by the Canadian Food Inspection Agency or CFIA), your product will not be allowed to enter the Canadian marketplace.

Which raises the second question: What do you need to do to meet the Canadian requirements?

First and foremost, speak with your certifier to make sure they will be able to offer certification to Canadian standards. A list of pre-approved certifiers active in the Canadian market has been published on the Organic Trade Association’s website.

In addition, all certifiers will need to be accredited by a recognized accreditation body that has agreements in place with CFIA. At this time, the Standards Council of Canada, CAEQ (Quebec), COABC (British Columbia), the International Organic Accreditation Service (IFOAM), and DAP (Germany) have all been audited by CFIA to provide services under the new Canadian regime.

The Canadian organic standards are unique, at times similar to either the U.S. or E.U. standards, though the fundamentals of all three are the same (i.e. third-party verification, inspection and audit trails, conversion, and other key points).

Canada has a positive materials list (the “Permitted Substance List”), which allows only specific uses for specific materials. If the material, input or processing aid you use is not on the list, it is not allowed in organic production or processing.

Once accredited and certified, products must be labeled according to the OPR. Canadian labeling requirements will be very similar to both the U.S. and E.U. A voluntary organic seal will be available, and products will be identified as “Organic” (95% or more), “Made with XX% organic ingredients” (70-95%), or, for products with less than 70%, the organic content may be identified on the ingredient panel (only). Unlike the U.S., Canada will not allow a “100% Organic” claim. Unlike the E.U., Canada does not have a labelling provision for “Transition to Organic” claims.

With the new mandatory regime coming into effect in December, there is an obvious need to phase in enforcement so that trade can continue smoothly. The Canadian industry sector has submitted a transition policy to CFIA allowing for “stream of commerce” flow-through of all products produced before the regulations were mandatory, and the sun-setting of certification. (The latter means one can become certified to the new requirements at the next scheduled annual inspection.) Other specific aspects of the transition policy, such as a voluntary compliance period and labelling options, will be determined in the coming months.

To stay up to date on Canada’s new organic regulations, standards, requirements and market reports, visit www.ota-canada.ca