Canada Gazette – Safe Food for Canadians Regulations http://www.gazette.gc.ca/rp-pr/p1/2017/2017-01-21/html/reg1-eng.php Canada Gazette Home > Publications > Vol. 151 (2017) > January 21, 2017 > Safe Food for Canadians Regulations Vol. 151, No. 3 — January 21, 2017 Safe Food for Canadians Regulations Statutory authority Safe Food for Canadians Act Sponsoring agency Canadian Food Inspection Agency REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations. ) Executive summary Issues: Recent decades have seen significant changes in the global food environment. Advances in science and technology, the emergence of highly integrated food supply chains and changing consumer preferences require Canada’s federal food regulatory system to keep pace in order to protect the health of Canadians. The increasingly global marketplace for food commodities has created more opportunities for the introduction and spread of contaminants that may put Canadian food safety at risk. Food-borne illness continues to impose significant health and economic costs on Canadians and recent food safety incidents in Canada have demonstrated where the current federal food regulatory framework must be strengthened. This framework must also keep pace with prevention-focused international food safety standards so that Canadian food exporters have access to foreign markets and remain competitive internationally. Currently, foods prepared (see footnote 1) in Canada or imported into Canada are not all subject to the same regulatory requirements, and some food safety requirements do not reflect advances in technology, science and food safety best practices. Description: The proposed Safe Food for Canadians Regulations (the proposed Regulations) would strengthen Canada’s reputation as a leader in food safety by establishing consistent, prevention-focused requirements for food that is imported or prepared for export or interprovincial trade, and would also include some requirements applicable to food that is traded intraprovincially. The proposed Regulations would consolidate 13 food commodity-based regulations plus the food-related provisions of the Consumer Packaging and Labelling Regulations (CPLR) into a single and more outcome-based (see footnote 2) food regulation under the Safe Food for Canadians Act (SFCA). Some requirements for certain food sectors would be phased in to reflect business size and different levels of industry readiness. Plain-language tools and guidance would be provided to support small businesses that are involved in importing food, or preparing food for export for interprovincial trade, in meeting the requirements. Cost-benefit statement: The estimated benefits of the proposed requirements would have an annualized value of approximately $137.3 million. These benefits would be associated with the traceability of food and the licensing of businesses as well as the consolidation of food regulations. In comparison, the estimated costs of the proposed requirements would have an annualized value of approximately $138.2 million. These costs would be associated with the use of preventive controls (i.e. food safety requirements) and preventive control plans, the traceability of food, the licensing of businesses and the Canadian Food Inspection Agency (CFIA) regulatory implementation. The estimated net annualized benefit (i.e. benefits less costs) of these impacts would be approximately –$0.9 million. In addition to these estimates, other qualitative benefits would include a reduction in food safety risk for consumers, a more level playing field for Canadian businesses, increased international and domestic regulatory alignment, and sustained market access for Canadian exports. It will also expand the CFIA’s food safety regulatory coverage, bring a consistent and more effective approach to inspection and oversight for food safety by the CFIA, and enhance Canada’s reputation as a global food safety leader. “One-for-One” Rule and small business lens: The “One-for-One” Rule would apply. The estimated total administrative cost increase would have an annualized value of approximately $11.4 million. The small business lens would apply and the CFIA would provide a flexible option for small businesses that are involved in importing food, or preparing food for export or for interprovincial trade. As a result, the estimated total cost savings for these small businesses from the flexible option would have an annualized value of approximately $53.2 million. Domestic and international coordination and cooperation: The proposed Regulations would be well aligned with similar modernization efforts among Canada’s key trading partners. In addition, the proposed Regulations would provide a foundation for consistent federal oversight of food that better reflects internationally recognized food safety practices. Background Evolution of food safety risk Canada has one of the best food safety systems in the world but this system must continue to strengthen the oversight of foods that are increasingly at risk of contamination. These high-risk foods include fresh fruits and vegetables and prepared foods that do not fall under the current commodity-based regulations (i.e. foods from what is known as the non-federally registered sector [NFRS]). As consumers demand more convenient, ready-to-eat products (e.g. bagged salads), the risk of exposure to hazards also increases since these products are intended to be consumed without further cooking. Consumers also increasingly expect foods to be available year-round, which increases demand for imported foods (especially fresh fruits and vegetables) that are often sourced from countries with underdeveloped food safety systems (e.g. from some countries in South America). The volume of fresh fruits and vegetables and NFRS foods being imported into Canada has approximately doubled, from $11.7 billion in 2006 to $22.8 billion in 2015. With respect to fresh fruits and vegetables, a 43% increase in imports of these products from South America has been observed over the past four years. Over the same period, an increase in food safety issues has been observed from all domestic and foreign sources. From 2011 to present, there have been 84 recalls related to fresh fruits and vegetables as well as 1 573 recalls related to food from the NFRS. Together, these represent more than 70% of all recalls over this period. 1 de 117 25/01/2017 12:12 p.m. Canada Gazette – Safe Food for Canadians Regulations http://www.gazette.gc.ca/rp-pr/p1/2017/2017-01-21/html/reg1-eng.php The new risks with fresh fruits and vegetables are of particular concern, as a preventive food safety oversight program does not currently exist for this sector in Canada. As a result, identification of a food safety hazard is often only possible after illnesses have been reported, rather than through early detection and intervention prior to the entry of food into the retail market. A 2013 study in the Journal of Food Protection demonstrated that from 2001 to 2009, 27 fresh fruit and vegetable–related outbreaks occurred in Canada and resulted in over 1 500 cases of illness. The import-related aspect of this risk was illustrated by an incident that resulted in a Canada-wide Salmonella outbreak in 2014. This outbreak was linked to numerous products derived from imported chia seeds and prepared in Canada. It required the recall of 24 products from 9 different manufacturers, with many of these products being from the NFRS. This comprehensive recall was made more complex because of the absence of licensing, preventive control, and traceability requirements for those who imported and prepared these products. The absence of such requirements made it difficult for the CFIA to identify affected food businesses and ensure that the products were removed from the marketplace. In addition, high-profile food safety incidents have also been associated with food from federally registered establishments and have highlighted other areas where the food safety system could be strengthened. For example, a listeriosis outbreak over the summer and fall of 2008 spanned five provinces and resulted in 57 human illnesses and 23 deaths. The costs (including medical costs, non-medical costs, productivity losses and federal government costs) associated with this outbreak were estimated to be approximately $242 million. The outbreak was eventually linked to ready-to-eat meat products and a subsequent independent report on the outbreak contained several recommendations for the CFIA. These included suggestions for simplifying and modernizing regulations in accordance with preventive food safety practices and for requiring regulated parties to make the CFIA aware of food safety issues in a timely manner. A 2012 E. coli outbreak associated with meat products resulted in the largest beef recall in Canadian history, involving the recall and disposal of 12 million pounds of meat products. There were 18 confirmed illnesses and significant economic effects (costs estimated at between $16 million and $27 million) associated with this outbreak. The recommendations that were generated following this incident noted that, among other things, the CFIA did not possess the power to compel regulated parties to provide adequate documentation in the event of a significant food safety incident. These events have highlighted the scale and interconnected nature of current production systems, and have also shown that contamination can occur at any stage along the import, preparation and distribution chains. These