May 2010 Edition

                                          What's Happening at the FCC

Plant Construction, Equipment, & Sanitation, Schedule I & II

CFIA will be including a Schedule I & II component in their audits of processing facilities QMPs. FCC’s concern is that some CFIA inspectors may be over zealous and overly prescriptive in the implementation of the initiative. In response, the FCC has been in contact with CFIA’s Vice Presidents of Operations and Policy & Programs calling for a reasoned, phased-in implementation of the initiative. Corrective action for Schedule I & II deficiencies can sometimes be costly and take time to fix. We noted that the industry’s QMP is sufficiently robust to bring a suite of measures that often can address temporarily Schedule I & II defects. As well, we emphasized that a key element of the implementation is a national over-sight of the initiative. The approach should not only be a reasoned approach but the initiative must also be, and perceived to be, applied consistently across the country.

CFIA has agreed to establish an Ottawa based over-sight of the implementation. As such, if you encounter a situation where you believe an unreasonable approach has been taken by the CFIA inspector, contact the FCC office.

COSEWIC Calls for Prohibitions on Atlantic Cod and Redfish Stocks and the Pacific Yellowmouth Rockfish Stock

COSEWIC, the Canadian endangered species scientific body, will be proposing that Canadian government prohibit the harvest/bycatch of four Atlantic cod populations in the waters off Newfoundland & Labrador; Gulf of St. Lawrence, & Georges Bank; three redfish populations in the Gulf, the Atlantic, and the Arctic; and Yellowmouth rockfish in the Pacific. Some of these populations are currently under DFO fisheries moratoriums which do allow a level of unavoidable bycatch.

Canada’s “Product of Canada” Labelling Regime under Review

The new “Product of Canada” regime for the Canadian market introduced on December 31, 2008 is under review. Difficulties with the new regime have been recognized. The requirement that virtually all (98%) of the ingredients be of Canadian origin has meant that few processed products can meet the “Product of Canada” requirement. Sugar, salt, vinegar and other specific ingredients may be refined or bottled in Canada but they are not Canadian origin or difficult to consistently source in Canada. As well, there has been little, if any, uptake on the “Made in Canada from domestic and imported and imported ingredients” and the “Made in Canada from imported ingredients” options.

In response, the FCC has advised that the non-Canadian or limited Canadian available processing ingredients such as sugar, salt, etc. be exempted from the “Product of Canada” virtually all calculation. With respect to the “Made in Canada ……” label, we proposed that CFIA should go back to the original two basic requirements. That is a product can bear a “Made in Canada” label if the last substantial transformation of the product occurred in Canada or at least 51% of the total direct costs of producing or manufacturing the product is Canadian.

FCC joins the Association of Seafood Producers in calling for Supreme Court Review of a Ruling by the Court of Appeal in Newfoundland and Labrador

In 2003, a Newfoundland processor paid a harvester a 60 cent/lb bonus over the union negotiated minimum price for crab landed at the processor’s plant. This bonus was consistent with the bonus paid by other processors to harvesters delivering crab to their plants. In the course of the season, the market price for crab dropped considerably resulting in the Newfoundland processors eliminating any further bonus payments during the second half of the fishery.

One harvester subsequently proceeded with legal action to get the 60 cent/lb bonus for all the crab landed at the plant. The Newfoundland trial judge ruled that the bonus payment arrangements between harvesters and processors are not legally enforceable arrangements. In appeal, the Court of Appeal in Newfoundland and Labrador ruled that the processor had no right to alter the arrangement unilaterally and, as such, declared the action a breach of contract and ordered the processor to pay the 60 cent/lb bonus for all crab landed by the harvester to the plant.

The Association of Seafood Producers has decided to ask the Supreme Court of Canada to hear an appeal of the Court of Appeal’s ruling. As the ruling could have implications in the fisheries beyond Newfoundland and Labrador, the Fisheries Council of Canada has also requested that the Supreme Court of Canada hear the appeal.

Seafood Health/Nutrition Claims Information Session: Tuesday May 18

Agriculture & Agri-Food Canada will hold a 1 ½ hour teleconference on the rules and regulations regarding health and nutrition claims in promoting seafood in the Canadian marketplace. As well, the session will provide a road map regarding submission to get new health claims approved.

Alaska Creates its Own Eco-Certification Scheme

The Alaska Seafood Marketing Institute (ASMI) is following the lead of Iceland’s Fisheries Ministry and the Japan Fisheries Association in creating its own eco-certification regime. ASMI duplicates Iceland’s approach in that they have hired Global Trust to perform an independent, third party certification of Alaska fisheries. Each major fishery will be assessed for conformance to the FAO’s Code of Conduct for Responsible Fisheries and the FAO Guidelines for Ecolabeling Fishery Products.

ASMI wants the management structures for salmon, groundfish, halibut and black cod certified. The Alaska Fisheries Development Foundation (AFDF) stepped forward in February to get the Alaskan salmon fishery MSC re-certified. Some ASMI board members were reluctant to take that step as they were concerned that the MSC brand was beginning to over-shadow the “Alaskan” brand that ASMI has built up over the years.

FCC 2010 Conference; Mark the Dates


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