© 2011 Her Majesty the Queen in Right of Canada (Canadian Food Inspection Agency), all rights reserved. Use without permission is prohibited. CFIA Food Regulatory Modernization Saskatchewan Green Trades Conference November 7, 2014

CFIA Transformation Why are we doing this? o Globalization and industry consolidation o Shifting consumer landscape – aging population and increasing expectations o Evolving production and processing technologies o Emerging pathogens and diseases o Increased knowledge of risk and systems-based approaches o Advances in science and technology o Modernization initiatives of trading partners 2

What is CFIA Transformation? A comprehensive agenda to strengthen our legislative foundation, regulatory programs and inspection delivery CFIA’s transformation agenda is focussed on the four inter-connected pillars of the Safe Food for Canadians Action Plan: stronger safety rules; more effective inspection; commitment to service; and more information for consumers. Transformation efforts started with food, with plant and animal following 3

The SFCA received Royal Assent in November Meat Inspection Act (1) Fish Inspection Act (1) Consumer Packaging and Labelling Act (1) Canadian Agricultural Products Act (10) Applies to dairy, egg, fruit, vegetable, maple and honey products marketed through import, export and interprovincial trade Meat Inspection Act (1) Fish Inspection Act (1) Consumer Packaging and Labelling Act (1) Canada Agricultural Products Act (10) Applies to dairy, egg, fresh fruit and vegetables, maple and honey products marketed through import, export and interprovincial trade The Food and Drugs Act (FDA) continues to apply to all food sold in Canada, as do other CFIA statutes related to plant and animal health. Safe Food for Canadians Act (SFCA) 4 It provides the legislative base to simplify and consolidate three CFIA inspection statutes and 13 corresponding regulations with a single set of food inspection regulations that apply to all food imported, exported and prepared for inter-provincial trade.

Proposed Safe Food for Canadians Regulations 5 Licensing and Licensing Elements Food Safety Requirements and Elements Preventive Control Plan (PCP) Commodity Specific Requirements Safe Food for Canadians Regulations The proposed regulations would apply to all food imported, exported and prepared for inter-provincial trade. The key elements are:

Regulated Parties would be required to… Proposed Safe Food for Canadians Regulations 6 Hold a License Licensing allows CFIA to: - identify who is preparing or importing food in Canada and establish relationships -authorize an activity and attach specific conditions - determine where food businesses are located and what activities they are conducting Commodity-specific requirements would be maintained for certain safety provisions, grades, standards of identity, container sizes, country of origin and labelling Meet Common Food Safety Requirements Develop/Maintain PCP Commodity Specific Requirements Document potential risks and hazards associated with a specific food commodity or process Demonstrate how risks and hazards will be controlled, monitored and deviations corrected (consistent with HACCP) Small-businesses less thank $30k: would require a licence, meet regulatory requirements for PCP, but be exempt from having a written PCP Apply to all license holders whether a meat plant or a small bakery Reflect CODEX standards (e.g., hygiene, sanitation, pest control) Contain provisions for Traceability (one step forward one step backward) :

Commodity Specific Provisions - Horticulture Licensing The new regulations will require licensing for those who import and those who manufacture, prepare, and package food (e.g., field pack) for inter- provincial trade or export, however, distributors and FFV producers will not require a licence. Preventive Control Plans (PCPs) Would be required for those who grow and harvest FFVs, including those who field-pack and for indoor production, for trade inter-provincially or export. Importers will need to ensure produce was grown and harvested in accordance with Canadian requirements. New PCP requirement would be consistent with Codex and CanadaGAP. Dispute Resolution Mechanism Licensing and Arbitration Regulations and “dual licensing” will be replaced with a requirement for fruit and vegetable dealers to be members of a non- government entity (DRC) to facilitate orderly trade and better align with system in the United States.

No licence or PCP requirement if product remains in province Licence and PCP required if product crosses borders It is currently proposed that micro-businesses less than $30k would: require a licence and must meet food safety requirements for preventive controls, but be exempt from requirement for a written PCP. Licensing, food safety requirements, and preventive control plans would apply to food exported, imported, or traded across provincial borders

Grades The proposed regulations would outline the conditions for grading and grade labelling, and could incorporate by reference the Canadian Grade Compendium that would consolidate existing grade standards in a single document, organized by commodity for ease of reference. The proposed regulations would state that a food may only be graded with a Canadian grade if it: meets the requirements of the SFCA and Regulations, including any standards of identity, colour, classification, packaging and labelling requirements; meets the requirements for a grade set out in the Compendium; was prepared by a licence holder; and is graded by the licence holder, a grader or an inspector. 9

Three Years of Analysis and Consultation June 2012: SFCA tabled in Parliament Nov. 2012: SFCA receives Royal Assent 2013 Sping 2013: New Regulatory Framework for Food Inspection released June 2013: 1 st Food Forum held June to Nov st Round of engagement launched 2014 June 2014: Healthy and Safe Food Forum May to Aug nd round of consultations on SFCR Unprecedented engagement with stakeholders – support continues and interest remains high Work began with stakeholders prior to 2012 in developing a legislative proposal Combined, more than 15,500 stakeholders have been engaged and have responded enthusiastically by sending in over 300 submissions on the regulations.

Overview of Second Round of Consultations In June, 2014, the two day Healthy and Safe Food Regulatory Forum (the Forum), served as the launch for a second round of consultations on the proposed regulations. Participants included at the forum included representatives from industry, academia, federal partner departments, consumer groups and other stakeholder groups. Leading up to the Forum a number of food safety modernization documents were released for consultation: A New Regulatory Framework for Federal Food Inspection: Overview of Proposed Regulations Use of Private Certification to Inform Regulatory Risk-Based Oversight Incorporation by Reference Foreign Food Safety Systems Recognition: Proposed Framework The Draft Integrated Agency Inspection Model CFIA Guidance Documents: Supporting Compliance with the Proposed Safe Food for Canadians Regulations Food Program Framework Draft Compliance Promotion Strategy Draft Compliance, Control and Enforcement Framework Enhancing Risk Analysis: A more systematic and consistent approach 11

Consultations Feedback Support for the food regulatory modernization agenda continues Better understanding of proposed horizontal requirements Want to see commodity specific requirements Concerns around the capacity of small businesses to comply Foreign government (U.S., EU, China) feedback is supportive Anxious to see appeal process and related regulations Viewed as consistent with global food safety approaches Opportunity to level the playing field for all food made in Canada – whether domestic or imported 12 Difference between registered and non- registered sectors on $30k preventive control plans exemption

The coming into force proposal reflects the different levels of readiness between industry that is: “Registered” – already largely meet and are under active CFIA oversight Fresh Fruit and Vegetable – many existing requirements, but few preventive controls “non-registered” – smaller companies may be unaware of CFIA requirements Registered**Fresh Fruit and Vegetables Non-Registered** License2015 (June) 2016 (June) PCP2015 (June)2016 (June)2017 (June) Modest changes for industry Do not have substantive food safety provisions FDA applies FDA still applies Licensing first enables compliance promotion **Includes new export requirements for these products Coming into Force Plan 13

Guidance Documents o Clearly link to regulatory provisions o Provide sufficient information for industry to understand their obligations 14 The CFIA currently has over 250 food manuals (over 44,000 pages). These would be replaced to align with new legislative authorities to: o Include models systems (non-binding guidance) to assist industry to comply o Develop verification procedures/tasks that form an integral part of the new CFIA Compliance Enforcement Strategy o Use a standardized format and “plain language”

Future Issues Once complete, the CFIA would turn to developing: Regulations under SFCA: Disclosure of Information Regulations under Canadian Food Inspection Agency Act: Recall Regulations and Review Mechanism Regulations under Agriculture and Agri-Food Administrative Monetary Penalties Act: Amendments to the AMP Regulations to designate violations under the SFCA/SFCR Phase II – Areas being considered for future inclusions in the regulations following policy development and appropriate consultation include: Distribution centres, warehouses and transporters Managing unforeseen circumstances (e.g. food defence) Others as identified 15

Next Steps All consultation feedback is being triaged and analysed. Where appropriate, feedback will be reflected in Canada Gazette I. Industry specific technical briefings are being scheduled. A series of targeted discussion sessions with SMEs (owners and/or representatives) will take place in order to better understand their perspectives on the design of guidance materials (e.g., format, language style, level of detail, method of communicating materials etc.). January 2015 – Target for publication of proposed regulations in Canada Gazette Part I with a Comment period open for 75 days. June 2015 – Target for publication of final regulations in Canada Gazette Part II. 16

Feedback By By mail: Strategic Partnerships Division 1400 Merivale Road, Tower 1 Floor 5, Suite 216 Ottawa, ON K1A 0Y9 Canada Attn: Linda Webster By fax: To stay connected with the CFIA, sign up to our Listserv ( 17