1. Regulatory Constraints to Growing Canola Markets ~ A Canola Processor Perspective ~ July, 2005 ~ Pat Van Osch Canbra Foods

2. Regulatory Categories Domestic International

3. Domestic Regulatory – Existing “Product Barriers” Yellow Margarine in the province of Quebec Provincial limitations on the marketing of products that are a blend of Canola Oil and Dairy products Limitations on Terminology usage on product descriptions Federal Regulations that restrict the adding of vitamins and minerals to vegetable Oil base products Limited Health/Nutritional claims These regulations discourage innovation and product development that would increase consumer choice and help consumers develop improved nutritional diets!

4. Domestic Regulatory – Upcoming and Under Consideration New food labeling in effect Dec 12, 2005 – An increase awareness of healthy diets will benefit Canola Oil Canada Food Guide – Looking for recognition of essential fatty acids in the diet. Trans Fat task force – Must keep focus on the combination of Trans and Saturated fats – Could create new opportunity for canola oil - IE: Partially Hydrogenated frying applications – But, may have a negative effect in other areas - IE: Baking products Increased Traceability/IP of food products – Expect ongoing increase demands in this area – Should let commercial relationships determine requirements/value

5. Domestic Regulatory – Industrial Uses Bio Diesel – Lot’s of interest in North America – Europe growth is significant – New policies and regulatory provisions will be required as part of Canada’s renewable fuel initiative Industrial Seed Varieties – Must be very cautious as to how we manage – Understand the need, but must assess the risk and take appropriate steps to manage. – We don’t need a Starlink issue in the Canola industry

6. Domestic Regulatory – Other Environmental – Increasing demands and expectations – COPA committee has 14 items they are addressing – Look for science based requirements and that North American/World standards be taken into consideration when developing new regulations as we need to compete in these world market. – Not yet sure of what, if any, impact Kyoto agreement will have Transportation – Working through the WCSC – Focus on having competitive railway environment With other North American rail movements Like products to similar destinations (Seed and Oil to Vancouver)

7. International Regulatory – Tariffs and Taxes COPA has consistently looked for parity of all products with a movement towards “zero”. Parity would be with like products (Canola Oil, Soybean Oil, Palm Oil, etc) and within Canola components ( Seed and Oil) Many countries still have some form of Tariff or Tax that favor other products or components over canola oil COPA is working closely with oil seed processing associations in many other countries to bring focus to a “level playing field”. Also very engaged with Canadian negotiators.

8. Thank You.