Canadian Cheese Regulations to Cost $70 Million

CANADA - Cheese makers have launched legal action against regulation changes which threaten to cost the industry $70 million for ingredients.
calendar icon 23 October 2008
clock icon 1 minute read

Kraft along with Parmalat Canada and Saputo jointly filed an application in the Federal Court of Canada challenging the regulations which they claim will require cheese makers to strictly limit the use of modified milk ingredients, says FoodNavigator. This is likely to result in the use of more raw milk, which would increase costs.

According to Foodnavigator.com, Yvan Loubier, a spokesman for the three cheese makers, said: “The clear intent of these new regulations is additional revenue for dairy farmers. 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 unique 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 Dairy Processors Association of Canada (DPAC) had previously said that the move would force dairy processors to purchase more raw full fat milk to produce cheese by limiting the use of certain ingredients made from milk. These ingredients include whey protein, skim milk powder, milk protein and whey protein concentrates.

They anticipate that the purchase of additional raw milk will increase production costs.

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