Required Report - Public distribution

**Date:** 3/3/2009

**GAIN Report Number:** CA9012

CA9012

**Canada**

**Exporter Guide**

**Canada**

**2008**

**Approved by:**

![](media/image1.wmf)Robin Tilsworth

U.S. Embassy

**Prepared by:**

George Myles and Joyce Gagnon

**Report Highlights:**

This report replaces GAIN report CA8084. It updates/revises some
sections in the Exporter Guide 2008 published in December 2008. The
Exporter Guide is a practical guide for U.S. food exporters in the
Canadian market; includes updates to the organic food section, market
sector reports, consumer trends, and best prospects for U.S.
consumer-oriented agricultural products in the Canadian market.e

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Ottawa \[CA1\]

\[CA\]

Table of Contents

[SECTION I. MARKET OVERVIEW 4](#section-i.-market-overview)

[Consumer Trends in Retail Food 5](#consumer-trends-in-retail-food)

[SECTION II. EXPORTER BUSINESS TIPS; SERVICES; FOOD REGULATION
6](#section-ii.-exporter-business-tips-services-food-regulation)

[Export Services for U.S. Food and Agricultural Exporters
6](#export-services-for-u.s.-food-and-agricultural-exporters)

[Business Customs Import Procedures
8](#business-customs-import-procedures)

[Customs Brokers 8](#customs-brokers)

[The Commercial Import Process 9](#the-commercial-import-process)

[Import Service Centers 9](#import-service-centers)

[http://www.inspection.gc.ca/english/imp/importe.shtml
9](#__RefHeading___Toc223336094)

[Non‑Resident Importers 9](#nonresident-importers)

[Food Brokers 9](#food-brokers)

[Food Regulation 9](#food-regulation)

[Labeling Requirements 9](#labeling-requirements)

[The Guide to Food Labeling and Advertising in Canada
10](#the-guide-to-food-labeling-and-advertising-in-canada)

[Label Review 10](#label-review)

[Labeling of Shipping Containers 12](#labeling-of-shipping-containers)

[Nutrition Labeling 13](#nutrition-labeling)

[Tariffs and Tariff Rate Quotas (TRQs)
14](#tariffs-and-tariff-rate-quotas-trqs)

[Packaging and Container Regulations
15](#packaging-and-container-regulations)

[Food Additive Regulations 15](#food-additive-regulations)

[Pesticide and other Contaminants 15](#pesticide-and-other-contaminants)

[Other Regulations and Requirements
16](#other-regulations-and-requirements)

[Inspection and Registration Fees 16](#inspection-and-registration-fees)

[Container Sizes: Processed Meats 16](#container-sizes-processed-meats)

[Requirements for Fresh Meats 16](#requirements-for-fresh-meats)

[Requirements for Fresh Fruits and Vegetables
17](#requirements-for-fresh-fruits-and-vegetables)

[Processed Horticultural Products 17](#processed-horticultural-products)

[Other Specific Standards 18](#other-specific-standards)

[Fish and Seafood 18](#fish-and-seafood)

[Novel Foods (Genetically Modified Foods)
18](#novel-foods-genetically-modified-foods)

[Wine, Beer and Other Alcoholic Beverages
19](#wine-beer-and-other-alcoholic-beverages)

[Organic Foods 19](#organic-foods)

[Kosher Foods 20](#kosher-foods)

[Pet Food Labeling 21](#pet-food-labeling)

[Livestock Feeds 22](#livestock-feeds)

[Labeling Claims 22](#labeling-claims)

[Meat Labeling Claims 22](#meat-labeling-claims)

[Diet-Related Health Claims 23](#diet-related-health-claims)

[Food Allergens 23](#food-allergens)

[Sample Products 24](#sample-products)

[Test Marketing: Processed Food Products
24](#test-marketing-processed-food-products)

[Temporary Marketing Authorization Letter (TMAL)
25](#temporary-marketing-authorization-letter-tmal)

[Interim Marketing Authorization 26](#interim-marketing-authorization)

[Copyright and/or Trademark Laws 27](#copyright-andor-trademark-laws)

[SECTION III. MARKET SECTOR STRUCTURE AND TRENDS
27](#section-iii.-market-sector-structure-and-trends)

[Market Sector Reports 28](#market-sector-reports)

[SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS
29](#section-iv.-best-high-value-product-prospects)

[SECTION V. ROAD MAP FOR MARKET ENTRY
30](#section-v.-road-map-for-market-entry)

[SECTION VI. QUESTIONS AND ANSWERS
32](#section-vi.-questions-and-answers)

[SECTION VII. CONTACTS 33](#section-vii.-contacts)

[APPENDIX I. SUMMARY OF USEFUL WEBSITES
34](#appendix-i.-summary-of-useful-websites)

[APPENDIX II. STATISTICS 35](#appendix-ii.-statistics)

[Table A. Key Trade and Demographic Information
35](#table-a.-key-trade-and-demographic-information)

[Table B. Consumer Food & Edible Fishery Product Imports
35](#table-b.-consumer-food-edible-fishery-product-imports)

[Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products
36](#table-c.-top-15-suppliers-of-consumer-foods-edible-fishery-products)

# SECTION I. MARKET OVERVIEW

# 

Canada is the No. 1 market for U.S. agricultural exports. In FY2008 US
agricultural exports to Canada reached a record \$16.2 billion. U.S.
agricultural exports to Canada accounted for 14% of total U.S. food and
agricultural product exports of \$115.4 billion. Consumer-oriented
agricultural products accounted for 74% of total U.S. food and
agricultural product sales to Canada in FY2008, with fresh and processed
fruits and vegetables, snack foods, breakfast cereals, processed
horticultural products, and red meat products as the category leaders.
American products accounted for more than 60% of total Canadian
agricultural imports in 2007.

During FY2008, a number of consumer oriented agricultural categories
posted record sales to Canada. The top 5 categories are fresh vegetables
(\$1.5 billion), fresh fruit (\$1.4 billion), snack foods (\$1.3
million), red meat (\$1.1 billion), and fresh vegetables (\$923 million)
and breakfast cereals (\$488 million). Combined items in these
categories accounted for more than half of total U.S. exports
consumer-oriented agricultural products to Canada.

Canada is also an important market for U.S. fish and forestry exports.
Canada is the No. 2 market for U.S. fish and seafood exports and sales
during FY2008 reached \$763 million. Despite being a major producer and
world exporter of forest products, Canadian imports of U.S. forest
products reached \$2.4 billion in FY2008. Combined, total U.S. farm,
fish and forestry product exports to Canada reached a record \$19.4
billion during FY2008, \$3.2 billion more than to Mexico, the next
largest market destination. Total bilateral agricultural trade between
the U.S. and Canada reached \$34.1 billion in FY2008, more than \$90
million per day. Two-way truck traffic alone exceeds 7,000 trucks per
day. That's an average of almost one truck, every-other-minute, 24 hours
a day. The United States and Canada have the world\'s largest bilateral
trading relationship. During FY2008, two-way merchandise trade reached
\$616 billion.

+-----------------------------------+-----------------------------------+
| **Canadian Market Overview        |                                   |
| Summary**                         |                                   |
+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| Proximity                         | Tariff rate quotas for certain    |
|                                   | products                          |
| Similar lifestyles and            |                                   |
| consumption trends                | Differences in standard package   |
|                                   | sizes                             |
| Wide exposure to American culture |                                   |
|                                   | Differences in chemical residue   |
| Frequent business and personal    | tolerances                        |
| trips to U.S.                     |                                   |
|                                   | Differences in nutrition labeling |
| Duty free tariff treatment for    |                                   |
| most products under NAFTA         | Bilingual (English & French)      |
|                                   | labeling                          |
| Ease of entry for business travel |                                   |
|                                   |                                   |
| High U.S. brand awareness         |                                   |
|                                   |                                   |
| High U.S. quality and safety      |                                   |
| perceptions                       |                                   |
|                                   |                                   |
| Similar food shopping patterns    |                                   |
+-----------------------------------+-----------------------------------+

Under the tariff elimination provisions of the North American Free Trade
Agreement (NAFTA), the majority of U.S. agricultural products have
entered Canada duty-free since January 1, 1998. On December 4, 1998 the
United States and Canada signed a Record of Understanding, an agreement
to further open Canadian markets to U.S. farm and ranch products.
Tangible benefits of the agreement have accrued to the U.S. agricultural
industry.

Trade with Canada is facilitated by proximity, common culture, language,
similar lifestyle pursuits, and the ease of travel among citizens for
business or pleasure. Many American products have gained an increased
competitive edge over goods from other countries as the result of the
FTA/NAFTA. Canada's grocery product and food service trades have been
quick to seize opportunities under FTA/NAFTA, which permit them to
expand their geographical sourcing area to include the United States.
Declining import duties under the trade agreements and an easing of
Canadian packaging requirements for processed horticultural products for
the food service market have resulted in significant gains in the
Canadian market for U.S. consumer-ready foods and food service foods.
However similar the United States and Canada are, there are differences
that exporters need to become aware. Understanding the nuances of a
marketplace is critical to a successful launch of a product in any
foreign market.

## Consumer Trends in Retail Food

Canada's population as of October 6, 2008 was estimated at 33.4 million.
The growth rate is relatively slow at about 1.2%. The popularity of U.S.
food products is very high and Canadian consumers are keenly aware of
new product offerings in the United States. The closer integration of
the North American food market under the NAFTA means that U.S. food and
agricultural products are in high demand by Canadian retailers. There
are some important trends in the Canadian retail food market that can
help U.S. food exporters better understand the market. The following
highlights are taken from an Agriculture and Agri-Food Canada review
with updates and/or additional information incorporated by the Office of
Agricultural Affairs at the U.S. Embassy in Ottawa. For more information
on food marketing and trends in Canada, see Section III on Market Sector
Structure.

Demographics

-   Population growth is slow -1.2% a year

-   Graying population - double the number of seniors compared to 25
    years ago.

-   In 1984, persons 50 years and older accounted for 23% of the
    population. By 2005, the percentage had increased to 30%

-   Family structure - household size 3.0 people

Graying Population

-   Seniors well off financially, well educated, and willing to spend

-   Have time to shop for what they want

-   Becoming preoccupied with health and product quality

-   Demanding smaller portions, single packages, easy to open and
    easy-read labels

Cultural Diversity

-   Ethnic diversity - Asia is the major source of immigrants (more than
    half of all immigrants during the 1990s)

-   The cultural diversity is an increasingly important force in the
    marketplace, particularly in urban centers

-   Ethnic foods like Pad Thai and shwarmas are gaining in popularity

-   Canadian ethnic diversity is different from U.S. (less Hispanic
    influence)

Economic Trends

-   Real personal disposable income growth has experienced a slowdown
    during the past ten years but price inflation has been low

-   Dual-income families the norm but single-parent families also
    prominent... many more women in the work force

Canadian Food Expenditures

-   Real spending on food & non-alcoholic beverages has not increased in
    the 1990s\.... about 12% of average Canadian household income

-   Spending on food outside the home (restaurants) increasing but lags
    behind the U.S.

Market Place Behavior

-   People still want value and will price shop

-   More people own microwaves than barbeques

-   A lack of time to shop and prepare meals 

-   Increased demand for convenience foods, home delivery, \"ingredient
    solutions,\" and home meal replacements

-   The majority of fish and seafood sales are in foodservice

-   Kosher food sales are showing a rapid rise

-   Demand for organic food continues to increase

-   Demand for better-for-you foods on rise

-   More microwaveable products

-   More convenience, hand-held foods

-   More private label products

Retail Store Trends

-   Grocery stores are growing in size\...up to 50,000 square feet and
    40,000 different food & non-food items

-   More ready-made foods... to compete with fast food take-out food
    service outlets

-   The big supermarkets are locked in a market share battle against the
    big box stores, and other non-traditional chain stores

-   Major chains have organic sections

Red Meat and Poultry Demand

-   Canadians spend more on meat than on any other food category

-   Poultry meats have performed well compared to other meats\...the per
    capita retail weight of poultry meat is greater than either pork or
    beef

Increase in Food Label Consciousness

-   Canadians are becoming more food label conscious including nutrition
    labeling and ingredient labeling. There is an increased focus on the
    levels of trans fats, sodium, fiber, and sugar in packaged foods and
    increased awareness of the issues surrounding allergens, food
    fortification and health claims.

# 

# SECTION II. EXPORTER BUSINESS TIPS; SERVICES; FOOD REGULATION

## 

## Export Services for U.S. Food and Agricultural Exporters

USDA-FAS offers a variety of export marketing services to assist U.S.
exporters find customers overseas. Whether a new or experienced
exporter, USDA-FAS services are the perfect tools to grow a business.

**Services:**

-   **Foreign Buyers List**

> (<http://www.fas.usda.gov/agx/buying_us/foreign_buyers_exporters.asp>) -
> Information on over 25,000 foreign buyers of food, farm, fish, seafood
> and forest products in more than 80 countries. Fee: \$15 per list (per
> country/per product).

-   **Export Directory of U.S. Food Distribution Companies**

> (<http://www.fas.usda.gov/agx/buying_us/directory_food_distribution.asp>) -
> This directory provides information on U.S. suppliers of mixed
> containers of grocery and/or food service products to foreign buyers.
> *Registration is free of charge.*

-   **U.S. Suppliers List**
    (<http://www.fas.usda.gov/agx/partners_trade_leads/us_suppliers_list.asp>) -
    A searchable database of over 3,500 U.S. exporters and their
    products (over 500 product categories), used by USDA-FAS to help
    facilitate connecting potential buyers with U.S. suppliers.
    *Registration is free of charge.*

-   U.S. suppliers who want to inform foreign buyers about their
    products will be directed to the State Regional Trade Groups (SRTGs)
    for assistance. The SRTGs, which are FAS program participants, offer
    customized export assistance on a wide variety of export-related
    topics from \"connection to collection.\" The SRTGs list can be
    obtained by accessing the FAS Web page at:
    <http://www.fas.usda.gov/agx/counseling_advocacy/srtg_directory.asp>.

**State Departments of Agriculture**

The state departments of agriculture and associated organizations also
promote U.S. food and agricultural exports and are an additional
valuable source of information. The National Association of State
Departments of Agriculture (NASDA) represents all 50 State departments
of agriculture and those from the trust territories of Puerto Rico,
Guam, American Samoa, and the Virgin Islands. In addition, there are
four regional organizations associated with their respective departments
of agriculture. Prospective exporters are encouraged to check with their
respective state and/or regional organizations for assistance. Website:
[http://www.nasda.org](http://www.nasda.org/)

**Department of Commerce District Offices**

Before exporting, U.S. firms are also encouraged to contact the nearest
U.S. Export Assistance Center (USEAC) located in major U.S. cities.
These offices can provide up-to-date information on required export
documentation and where to obtain required forms. Most Canadian forms
are available from selected U.S. commercial printers. Each USEAC office
has a trade specialist who can provide assistance with export
documentation. For a full listing of USEAC offices, go to:
<http://www.commerce.gov/statemap2.html>

The U.S. Commercial Service offers valuable assistance to help your
business export goods and services to markets worldwide. From this site
you can access a global listing of trade events, international market
research, and practical tools to help with every step of the export
process. Web page: [http://export.gov](http://export.gov/)

**Country Commercial Guides**

The Country Commercial Guides (CCG) are prepared by U.S. Embassy staff
annually and contain information on the business and economic situation
of foreign countries and the political climate as it affects U.S.
business. Each CCG contains the same chapters, and an appendix, which
include topics such as marketing, trade regulations, investment climate,
and business travel. Available at
[http://export.gov](http://export.gov/).

## 

## Business Customs Import Procedures

### 

### Customs Brokers

Some U.S. firms choose to obtain the services of a Canadian customs
broker (a private company operating as a trade facilitator) to help them
comply with Canadian import requirements and in some cases, market their
product. Canada Border Services Agency (CBSA) licenses customs brokers
to carry out customs‑related responsibilities on behalf of their
clients. A broker\'s services include:

-   Obtaining release of the imported goods;

-   Paying any duties that apply;

-   Obtaining, preparing, and presenting or transmitting the necessary
    documents or data;

-   Maintaining records;

-   Responding to any Canada Customs and Revenue Agency concerns after
    payment.

Clients have to pay a fee for these services, which the brokerage firm
establishes.

Importers who do not wish to transact business with the CBSA directly
may authorize an agent to transact business on their behalf. Although
importers may use an agent to transact business with the CBSA, the
importer is ultimately responsible for the accounting documentation,
payment of duties and taxes, and subsequent corrections such as
re‑determination of classification, origin and valuation. The importer
remains liable for all duties owing until either the importer or the
agent pays them.

Agents are required to obtain written authorization from their clients
in order to transact business on behalf of their clients. This business
may include but is not limited to:

-   Registering for a Business Number (BN), Importer/Exporter Account

-   Providing assistance in cases involving the Special Import Measures
    Act (SIMA)

-   Submitting refund requests (B2s)

-   Preparing release (interim accounting) documentation

-   Preparing final accounting documentation

-   Remitting payment of duties and taxes to the Receiver General of
    Canada

For additional information, contact:

Canadian Society of Customs Brokers

Suite 320, 55 Murray Street

Ottawa, ON K1N 5M3

Tel: 613-562-3543

Fax: 613-562-3548

Email: <cscb@cscb.ca>

Web Site: [www.cscb.ca](http://www.cscb.ca/)

Searchable list of members:
[www.cscb.ca/040/md_e.asp](http://www.cscb.ca/040/md_e.asp)

**Credit Checks**

Besides the well-known private credit service checks that may be
available, the U.S. Commercial Service (USCS) Trade Administration
offers a World Trade Data Report (WTDR) service designed to verify the
credit worthiness of companies in Canada. U.S. companies seeking more
information on the WTDR service should contact the closest U.S. Export
Assistance Center (USEAC) in the United States. The USCS also offers
additional services to help U.S. exporters.
(<http://www.buyusa.gov/home/us.html>)

### The Commercial Import Process

In order to bring goods into Canada, importers must provide the proper
documents to Canada Customs and Revenue Agency including:

-   Two copies of the cargo control document (CCD);

-   Two copies of the invoice;

-   Two copies of a completed Form B3, Canada Customs Coding Form;

-   One copy Form A ‑ Certificate of Origin (when necessary);

-   Any import permits, health certificates, or forms that other federal
    government departments require; calculate and declare the value for
    duty of the imported goods (where necessary) according to the
    valuation provisions of the Customs Act; make sure that the goods
    are properly marked with their country of origin; pay any duties
    that apply.

### Import Service Centers

The Canadian Food Inspection Agency's (CFIA) Import Service Centers
(ISC) are a control point in the import process and can respond to
import information requests electronically or by fax. The ISC works
closely with the Canada Border Services Agency in determining the
Customs release of food items. In addition, ISC is equipped to handle
telephone inquiries regarding import requirements for all commodities
regulated by the CFIA.

### [[]{#__RefHeading___Toc223336094 .anchor}http://www.inspection.gc.ca/english/imp/importe.shtml](http://www.inspection.gc.ca/english/imp/importe.shtml)

### Non‑Resident Importers

Non‑Resident Importers are companies that import goods into Canada but
which have addresses outside of Canada. These companies are required to
have a Business Number (BN) and an import/export account registered with
the Canadian Border Services Agency and Canadian Revenue Agency. For
more information:

<http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/menu-eng.html>

<http://www.cbsa-asfc.gc.ca/import/rb-ee-eng.html#P183_14485>

### Food Brokers

For U.S. companies entering the Canadian market, it is helpful to find a
Canadian food broker to help with the logistics of entering the country
in addition to marketing products. For a partial listing of Canadian
food brokers refer to report CA5068 on the FAS web site under Attaché
Reports. <http://www.fas.usda.gov/>

## 

## Food Regulation

### 

### Labeling Requirements 

### 

The basic packaging and labeling requirements necessary for U.S.
agricultural exports to Canada are:

-   Labels in English and French,

-   Net quantities in metric,

-   List of ingredients,

-   Durable life date (if shelf life 90 days or less),

-   Common name of product,

-   Company name and address,

-   Minimum type size specifications,

-   Conformity to standardized package sizes stipulated in the
    regulations, and

-   Country of origin labeling on shipping container

Although the Universal Product Code (UPC) or bar code is not required or
administered by government, virtually all retailers require products to
be labelled with a UPC.

### The Guide to Food Labeling and Advertising in Canada

The Canadian Food Inspection Agency has prepared a Guide to Food
Labeling and Advertising that details the regulatory requirements for
selling packaged foods in Canada. The CFIA Guide includes information
on:

-Basic Labeling Requirements

-Advertising Requirements

-Claims as to the Composition, Quality, Quantity and Origin of Foods

-Nutrition Labeling

-Nutrient Content Claims

-Health‑Related Claims

-Other Product Specific Requirements

The full guide is available on the CFIA website at:

<http://www.inspection.gc.ca/english/fssa/labeti/guide/toce.shtml>

**Enforcement**

The CFIA has the authority to refuse entry, detain, return, or remove
from retail shelves any imported processed food product that does not
meet the federal food labeling requirements.

### Label Review

The Canadian Food Inspection Agency consolidates federal food label
review under its Food Labeling Information Service. The labeling
service, designed particularly for new entrants in the marketplace who
are not familiar with the Canadian regulatory system, is provided at
specified regional locations across Canada. These offices coordinate the
requirements of the aforementioned federal departments to simplify
product approval and label compliance. It is recommended that U.S.
exporters submit their labels to the closest regional office. Prompt
answers can often be received to general and specific label questions.
(<http://www.inspection.gc.ca/english/fssa/labeti/guide/ch1e.shtml#1.6>)

+-----------------------------------+-----------------------------------+
| **Canadian Food Inspection Agency |                                   |
| Food Labeling Information         |                                   |
| Service**                         |                                   |
|                                   |                                   |
| **Regional Offices**              |                                   |
+-----------------------------------+-----------------------------------+
| **British Columbia**              |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   | Canadian Food Inspection Agency   |
|                                   |                                   |
| 400-4321 Still Creek Avenue       | 103-4475 Viewmont Avenue          |
|                                   |                                   |
| Burnaby, British Columbia V5C 6S7 | Victoria, British Columbia V8Z    |
|                                   | 6L8                               |
| Tel: (604) 666-6513               |                                   |
|                                   | Tel: (250) 363-3455               |
| Fax: (604) 666-1261               |                                   |
|                                   | Fax: (250) 363-0336               |
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| 1905 Kent Road                    |                                   |
|                                   |                                   |
| Kelowna, British Columbia V1Y 7S6 |                                   |
|                                   |                                   |
| Tel: (250) 470-4884               |                                   |
|                                   |                                   |
| Fax: (250) 470-4899               |                                   |
+-----------------------------------+-----------------------------------+
| **Alberta**                       |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   | Canadian Food Inspection Agency   |
|                                   |                                   |
| 7000 - 113 Street, Room 205       | 110 Country Hills Landing NW,     |
|                                   | Suite 202                         |
| Edmonton, Alberta T6H 5T6         |                                   |
|                                   | Calgary, Alberta T3K 5P3          |
| Tel: (780) 495-3333               |                                   |
|                                   | Tel: (403) 292-4650               |
| Fax: (780) 495-3359               |                                   |
|                                   | Fax: (403) 292-5692               |
+-----------------------------------+-----------------------------------+
| **Saskatchewan**                  |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| 301-421 Downey Road               |                                   |
|                                   |                                   |
| Saskatoon, Saskatchewan S7N 4L8   |                                   |
|                                   |                                   |
| Tel: (306) 975-8904               |                                   |
|                                   |                                   |
| Fax: (306) 975-4339               |                                   |
+-----------------------------------+-----------------------------------+
| **Manitoba**                      |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| 269 Main Street, Room 613         |                                   |
|                                   |                                   |
| Winnipeg, Manitoba R3C 1B2        |                                   |
|                                   |                                   |
| Tel: (204) 983-2220               |                                   |
|                                   |                                   |
| Fax: (204) 983-6008               |                                   |
+-----------------------------------+-----------------------------------+
| **Ontario**                       |                                   |
+-----------------------------------+-----------------------------------+
| Tel: 1-800-667-2657               | Central Region:                   |
|                                   |                                   |
| e-mail:                           | Canadian Food Inspection Agency   |
| labelwindow@inspection.gc.ca      |                                   |
|                                   | 709 Main Street West              |
| Northeast Region:                 |                                   |
|                                   | Hamilton, Ontario L8S 1A2         |
| Canadian Food Inspection Agency   |                                   |
|                                   | Tel: (905) 572-2201               |
| 38 Auriga Drive, Unit 8           |                                   |
|                                   | Fax: (905) 572-2197               |
| Ottawa, Ontario K2E 8A5           |                                   |
|                                   | Toronto Region:                   |
| Tel: (613) 274-7374               |                                   |
|                                   | Canadian Food Inspection Agency   |
| Fax: (613) 274-7380               |                                   |
|                                   | 1124 Finch Avenue West, Unit 2    |
| Canadian Food Inspection Agency   |                                   |
|                                   | Downsview, Ontario M3J 2E2        |
| 145 Renfrew Drive, Unit 160       |                                   |
|                                   | Tel: (416) 665-5055               |
| Markham, Ontario L3R 9R6          |                                   |
|                                   | Fax: (416) 665-5069               |
| Tel: 905-513-5977                 |                                   |
|                                   |                                   |
| Fax: 905-513-5971                 |                                   |
|                                   |                                   |
| Southwest Region:                 |                                   |
|                                   |                                   |
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| 1200 Commissioners Road East, \#  |                                   |
| 19                                |                                   |
|                                   |                                   |
| London, Ontario N5Z 4R3           |                                   |
|                                   |                                   |
| Tel: (519) 691-1300               |                                   |
|                                   |                                   |
| Fax: (519) 691-0148               |                                   |
+-----------------------------------+-----------------------------------+
| **Quebec**                        |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   | Canadian Food Inspection Agency   |
|                                   |                                   |
| 25 des Forges Road, Suite 418     | Carillon Place II                 |
|                                   |                                   |
| Trois-Rivières, Québec G9A 6A7    | 7101 Jean Talon Street East,      |
|                                   | Suite 600                         |
| Tel: (819) 371-5207               |                                   |
|                                   | Anjou, Quebec H1M 3N7             |
| Fax: (819) 371-5268               |                                   |
|                                   | Tel: 514-493-8859                 |
| Canadian Food Inspection Agency   |                                   |
|                                   | Fax: 514-493-9965                 |
| Place Iberville IV                |                                   |
|                                   |                                   |
| Suite 100, 2954 Laurier Boulevard |                                   |
|                                   |                                   |
| Ste-Foy, Quebec G1V 5C7           |                                   |
|                                   |                                   |
| Tel: (418) 648-7373               |                                   |
|                                   |                                   |
| Fax: (418) 648-4792               |                                   |
+-----------------------------------+-----------------------------------+
| **Nova Scotia**                   |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| P.O. Box 1060                     |                                   |
|                                   |                                   |
| 1992 Agency Drive                 |                                   |
|                                   |                                   |
| Dartmouth, Nova Scotia B2Y 3Z7    |                                   |
|                                   |                                   |
| Tel: (902) 426-2110\              |                                   |
| Fax: (902) 426-4844               |                                   |
+-----------------------------------+-----------------------------------+
| **New Brunswick**                 |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| 850 Lincoln Road                  |                                   |
|                                   |                                   |
| P.O. Box 2222                     |                                   |
|                                   |                                   |
| Fredericton, New Brunswick E3B    |                                   |
| 5G4                               |                                   |
|                                   |                                   |
| Tel: (506) 452-4964               |                                   |
|                                   |                                   |
| Fax: (506) 452-3923               |                                   |
+-----------------------------------+-----------------------------------+
| **Prince Edward Island**          |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| 690 University Avenue             |                                   |
|                                   |                                   |
| Charlottetown, PEI C1E 1E3        |                                   |
|                                   |                                   |
| Tel: (902) 566-7290               |                                   |
|                                   |                                   |
| Fax: (902) 566-7334               |                                   |
+-----------------------------------+-----------------------------------+
| **Newfoundland**                  |                                   |
+-----------------------------------+-----------------------------------+
| Canadian Food Inspection Agency   |                                   |
|                                   |                                   |
| Northwest Atlantic Fisheries      |                                   |
| Centre                            |                                   |
|                                   |                                   |
| P.O. Box 5667                     |                                   |
|                                   |                                   |
| St. John\'s, Newfoundland A1C 5X1 |                                   |
|                                   |                                   |
| Tel: (709) 772-8912               |                                   |
|                                   |                                   |
| Fax: (709) 772-5100               |                                   |
+-----------------------------------+-----------------------------------+

### Labeling of Shipping Containers

Labels of shipping containers are exempt from bilingual labeling
requirements. The outer container requires a product description, the
name and address of the U.S. company and a net quantity declaration in
either metric or Imperial measure. If the food in the inner container(s)
is not for sale directly to consumers (i.e., foodservice, etc.), that
label may also be in either French or English, but all other mandatory
label information, such as the list of ingredients, is required to be
shown.
<http://www.inspection.gc.ca/english/fssa/labeti/guide/ch2ae.shtml#2.15>

### 

### Nutrition Labeling

On December 12, 2007, Canada's mandatory nutrition labeling regulations
for prepackaged foods came fully into force. Small manufacturers,
domestic or foreign, with gross sales of C\$1 million or less in Canada
were granted an additional two years to comply after December 12, 2005.
The U.S. nutrition panel is not permitted on the labels of foods sold in
Canada. U.S. prepackaged food product exporters are advised to
familiarize themselves with Canadian nutrition labeling regulations and
to bring their packaging into compliance to avoid entry refusals at the
border or product detention. Nutrition Labeling Policy is set by Health
Canada while the Canadian Food Inspection Agency is responsible for
enforcement. The Nutrition Labeling websites are:

<http://www.hc-sc.gc.ca/fn-an/label-etiquet/nutrition/reg/index-eng.php>

<http://www.inspection.gc.ca/english/fssa/labeti/nutrition-pagee.shtml>

**Some Prepackaged Foods are Exempt from Mandatory Nutrition Labeling**

(Excerpt from the 2003 CFIA Guide to Food Labeling and Advertising,
Section 5.3)

The following products are exempt from displaying a Nutrition Facts
table:

a\) Foods, such as spices and some bottled waters, for which all the
nutritional information (other than serving of stated size) set out in
column 1 of the table to B.01.401 may be expressed as \"0\";

b\) Beverages with an alcohol content of more than 0.5 %;

c\) Fresh vegetables and fruits without added ingredients, oranges with
color, and fruit and vegetables coated with paraffin wax or petrolatum;

> This category includes fresh herbs such as parsley, basil, thyme, etc.
> (but not dried herbs); sprouts; and fruits and vegetables that are
> minimally processed (e.g., washed, peeled, cut-up, shredded, etc.),
> including mixtures of fruits and vegetables, such as bagged mixed
> salad and coleslaw (without dressing, croutons, bacon bits, etc.).
>
> *NOTE:* The exemption is lost if any health claim set out in the table
> following B.01.603 is made, including the following: \"A healthy diet
> rich in a variety of vegetables and fruit may help reduce the risk of
> some types of cancer,\" \[B.01.401 (3)(e)(ii), and item 4 of the table
> following B.01.603\].

d\) Raw, single ingredient meat, meat by-product, poultry meat, and
poultry meat by-product;

> *NOTE:* Prepackaged ground meat, ground meat by-product, ground
> poultry meat and ground poultry meat by-product must always carry a
> Nutrition Facts table \[B.01.401(3)(d)\].

e\) Raw, single ingredient marine or freshwater animal products (such as
fish, crustaceans, etc.);

f\) Foods sold only in the retail establishment where the product is
prepared and processed, including products made from a pre-mix when an
ingredient other than water is added to the pre-mix;

> *NOTE:* A Nutrition Facts table is required when only water is added
> to a pre-mix or when a product is only baked, cooked, etc. on the
> premises without the addition of other ingredients.

g\) Foods sold only at a roadside stand, craft show, flea market, fair,
farmers\' market and sugar bush by the individual who prepared and
processed the product;

h\) Individual servings of foods that are sold for immediate consumption
(e.g., sandwiches or ready-made salads), when these have not been
subjected to a process or special packaging, such as modified atmosphere
packaging, to extend their durable life;

i\) Foods sold only in the retail establishment where the product is
packaged, if the product is labeled by means of a sticker and has an
Available Display Surface less than 200 cm^2^;

j\) Prepackaged confections, commonly known as one-bite confections,
that are sold individually (e.g., small individually wrapped candies,
mints, etc.);

k\) Prepackaged individual portions of food that are solely intended to
be served by a restaurant or other commercial enterprise with meals or
snacks (e.g., crackers, creamers, etc.); and

l\) A variety of cow and goat milk products sold in refillable glass
containers.

**Losing the Exemption\
**

*(Excerpt from the 2003 Guide to Food Labeling and Advertising, Section
5.3.1)*

The last three items listed above (a one-bite confection, an individual
portion served with meals, milk in glass containers) never lose their
exemption. The remaining items listed above lose their exempt status and
are required to carry a Nutrition Facts table when:

-   A vitamin or mineral nutrient is added to the product;

-   A vitamin or mineral nutrient is declared as a component of an
    ingredient (other than flour);

-   Aspartame, sucralose, or acesulfame-potassium is added to the
    product;

-   The product is ground meat, ground meat by-product, ground poultry
    meat or ground poultry meat by-product; or

-   The label or advertisement contains one or more of the following:

-   A nutritional reference or nutrient content claim,

-   A biological role claim,

-   A health claim,

-   A health-related name, statement, logo, symbol, seal of approval or
    other proprietary mark of a third party, or

-   The phrase \"nutrition facts\", \"valeur nutritive\" or \"valeurs
    nutritives\".

### Tariffs and Tariff Rate Quotas (TRQs)

Effective January 1, 1998 the tariff provisions of the U.S.- Canada Free
Trade Agreement (FTA) removed all tariffs between the two countries with
the exception of those products for which Canada implemented tariff rate
quotas on January 1, 1995. The provisions of the FTA were incorporated
into the NAFTA to which Mexico is also a signatory. The NAFTA came into
effect on January 1, 1994.

In 1995, under the World Trade Organization (WTO) agreement, Canada
replaced import quotas on certain agricultural products with Tariff Rate
Quotas (TRQs). Under the TRQ system, imports that are within quotas are
subject to low or free rates of duty, until the quota limit has been
reached. Once quota limits have been reached, over‑quota imports are
subject to significantly higher Most‑Favored‑Nation (MFN) rates of duty.
The Canadian importer must be in possession of an import permit to
import TRQ commodities.

The Department of Foreign Affairs and International Trade (Export and
Import Controls Bureau) is responsible for administering Canada's Tariff
Rate Quotas for Agricultural Products. For more information go to:
<http://www.dfait-maeci.gc.ca/trade/eicb/agric/agric-en.asp>

Canada administers TRQs that affect exporters of the following U.S.
agricultural commodities:

-   Milk & Dairy Products

-   Cheese

-   Turkey

-   Chicken

-   Broiler Hatching Eggs & Chicks

-   Eggs and Egg Products

-   Margarine

**Important Note for U.S. meat exporters**: Canada has further TRQs that
affect both the level and the tariff rates of imports from non-NAFTA
origin of pork, beef, and wheat, barley and their products, but they do
not apply to imports of U.S. origin (or Mexican origin when eligible).

### Packaging and Container Regulations

Canadian regulations governing package sizes for fruits and vegetables,
processed horticultural products and processed meats stipulate
standardized package sizes that can differ from U.S. sizes. The
standards of identity and the container sizes are generally stipulated
in the regulations encompassing agriculture and food products.
Electronic access to all Canadian food-related regulations is available
through: <http://www.inspection.gc.ca/english/reg/rege.shtml>

### Food Additive Regulations

Canada's Food and Drugs Act and Regulations strictly control the use of
food additives. Most foods approved for sale in the U.S. would comply
with Canadian additive regulations, but differences can occur in the
permissible levels and uses of food colorings and food preservatives.
The food additive tables in Division 16 of the Regulations prescribe
which additives may be used in foods sold in Canada, to which foods they
may be added, for what purposes, and at what levels. Products containing
non‑permitted food additives may be refused entry into Canada. Canada's
Food and Drugs Regulations are available on the Internet at:

<http://www.hc-sc.gc.ca/fn-an/legislation/acts-lois/act-loi_reg-eng.php>

Specific technical questions relating to Canada's Food and Drugs
Regulations may be directed to:

Regulatory Assistant\
Bureau of Food Regulatory, International & Interagency Affairs\
Food Directorate\
Health Canada\
Building No. 7, Tunney\'s Pasture (PL 0702C1)\
Ottawa, ON K1A 0L2\
Telephone: (613) 957-0360\
Fax: (613) 941-3537\
Email:
[[food-aliment@hc-sc.gc.ca]{.underline}](mailto: food-aliment@hc-sc.gc.ca)

### 

### Pesticide and other Contaminants

Some agricultural chemicals approved for use in the United States are
not registered in Canada. As a result, these pesticides are deemed to
have a zero tolerance in Canada and imported foods which contain
unregistered pesticide residues above 0.1 parts per million are deemed
to be adulterated under Section B.15.002(1) of Canada\'s Food and Drug
Regulations. The goods are subject to detention, destruction, or return.
Canada is currently reviewing its policy of the 0.1 ppm default level. A
discussion document that outlines Canada's options and proposals for the
revocation of the 0.1 ppm maximum residue limit is available at:
<http://www.hc-sc.gc.ca/cps-spc/pest/protect-proteger/food-nourriture/qa-mrl-lmr-qr-eng.php>

Health Canada's Health Protection Branch sets maximum reside limits
(MRL) for pesticides. A full listing of Canadian MRLs is available at:

<http://www.hc-sc.gc.ca/cps-spc/alt_formats/pmra-arla/pdf/protect-proteger/food-nourriture/mrls-lmr-eng.pdf>

The PMRA is also responsible for pesticide registration. The address is:

Pest Management Regulatory Agency

Health Canada

2250 Riverside Drive

Ottawa, Ontario K1A 0K9

Telephone: 613-736-3799

## 

## Other Regulations and Requirements

### 

### Inspection and Registration Fees

As part of a Canadian government initiative to partially recover costs
associated with providing inspection services, most federal departments
charge fees to industry for inspection and product registrations. Canada
claims its fee structure is consistent with WTO provisions for national
treatment, in that the fees apply equally to Canadian and import sales.

### 

### Container Sizes: Processed Meats

Canada's Meat & Poultry Inspection Regulations stipulate the standard
package size requirements for processed meat and poultry products such
as bacon, sausages, sliced meats and wieners. Common U.S. package sizes
for these products are different from Canadian standardized sizes. For
example, sliced bacon cannot be sold in a 1 lb. package in Canada. It is
mostly sold in 500 g packages, one of the standardized sizes in the
regulations. Schedule II of the Meat and Poultry Inspection Regulations
lists all the acceptable package sizes for processed meats. It can be
viewed on the Department of Justice website at:
<http://laws.justice.gc.ca./en/M-3.2/SOR-90-288/index.html>

### Requirements for Fresh Meats

Federally inspected USDA meat and poultry plants must be on the Food
Safety Inspection Service's (FSIS) list of approved establishments to
export fresh meats to Canada. U.S. exporters should be aware that
establishments not listed in the current FSIS Meat and Poultry
Inspection Directory may experience delays in getting their certificates
pre-verified. Contact the FSIS Technical Service Center, Omaha, NE,
phone (402) 221-7400 for assistance.

An Agricultural Marketing Service (AMS) Export Verification (EV) program
is no longer required for export of beef and beef products to Canada,
but it is required for bison or buffalo meat. Since U.S. BSE regulations
do not apply to bison or buffalo, meat and meat products derived from
these species must be produced under an approved AMS EV program. The red
meat export requirements for shipments to Canada are detailed in the
[FSIS Library of Export
Requirements](http://www.fsis.usda.gov/OFO/export/explib.htm)
(<http://www.fsis.usda.gov/Regulations_&_Policies/Export_Information/index.asp>

For more information on the Export Verification Program for Bison or
Buffalo to Canada visit the following web site:
<http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateP&navID=GradingCertificationandVerfication&leftNav=GradingCertificationandVerfication&page=LSEVProgram>.

### Requirements for Fresh Fruits and Vegetables

All fruits and vegetables imported into Canada must meet specific
standards and packaging regulations laid out in the Canada Agricultural
Products Act's Fresh Fruit and Vegetable Regulations and Processed
Product Regulations. The regulations are available on the Internet at:
<http://laws.justice.gc.ca/en/C-0.4/C.R.C.-c.285/index.html>

U.S. fresh fruits and vegetable exporters must:

-   Comply with Canadian grade standards and packaging regulations,

-   Obtain Canadian Confirmation of Sale form. Consignment selling is
    prohibited,

-   Obtain special waiver of standard container regulations for bulk
    products,

-   File a Canada Customs invoice.

Beginning in 1995, Canada dropped the mandatory requirement (except for
apples, onions, and potatoes) that U.S. exports of fresh produce be
accompanied by USDA Agricultural Marketing Service (AMS) certification
that the produce meets Canadian import requirements. Some U.S. exporters
still choose to obtain AMS certification as evidence that the produce
left the shipping point in grade and condition.

Canada requires all foreign shippers of fresh produce to place a grade
on consumer size packages for which Canadian grades are established. The
law also requires a country of origin declaration with the grade and
weight (in metric) printed in a letter size directly proportional to the
size of the package display surface.

Consignment selling of fruits and vegetables into Canada is prohibited
by law and a confirmation of sale form is required for entry. Canada
Customs will release only produce that is pre-sold at the border.

Where grades and standard container sizes are established in Canadian
regulation, bulk imports require a special exemption from the Canadian
Food Inspection Agency. This exemption is not granted unless there is a
shortage of domestic supply. However, in November 2007, the countries
signed an arrangement to facilitate bilateral potato trade. The
arrangement will provide U.S. potato producers with predictable access
to Canadian Ministerial exemptions, a regulatory vehicle to import
potatoes that is only granted by the Government of Canada on a
case-by-case basis when there is a proven shortage of potatoes in
Canada. The Arrangement, when fully implemented in the third year, will
allow contracts between U.S. growers and Canadian processors to serve as
sufficient evidence of a shortage in Canadian potatoes.

Further information on fruit and vegetable regulations is available on
the [Canadian Food Inspection Agency's Fruit and Vegetable
website](http://www.inspection.gc.ca/english/fssa/frefra/frefrae.shtml):

<http://www.inspection.gc.ca/english/fssa/frefra/frefrae.shtml>

### Processed Horticultural Products

Imported processed horticultural products are subject to the
requirements of Canada's Processed Products Regulations. These
regulations stipulate the standards and grades for processed fruits and
vegetables. The maximum container size permitted for importation is 20
kg or 20 liters. Beyond these sizes, Canadian rules require a
ministerial exemption, or bulk waiver of standardized package. The
Processed Product Regulations are available for viewing at the following
Justice Department website:

<http://laws.justice.gc.ca/en/C-0.4/C.R.C.-c.291/index.html>

## 

## Other Specific Standards

### 

### Fish and Seafood

Fish and fish products are subject to the Fish Inspection Act and
Regulations, which contain requirements for wholesomeness, labeling,
packaging, grading, and health and safety.

There is no requirement under those regulations for imported fish
products to be accompanied by a health certificate. However, the person
who imports fish into Canada must hold a fish import license, must
provide written notification to the CFIA for each imported shipment of
fish and must make the fish available for inspection. Product
inspections are conducted at frequencies that depend on the product\'s
risk and the exporter\'s history of compliance. The normal inspection
frequency for fresh fish such as wild caught salmon from an exporter
with a good history of compliance would be 2%. More information
regarding the requirements to import fish into Canada can be found on
the CFIA web site in the document titled Guide to Canadian Regulatory
Requirements and Examination Procedures for Imported Fish.
<http://www.inspection.gc.ca/english/fssa/fispoi/import/guidee.shtml>

Labeling requirements for packaged fish must include all mandatory
information normally found on consumer packages such as:

-   Country of origin

-   Common name of the fish;

-   Name and address of the manufacturer;

-   Day, month and year of processing; and

-   Quantity (metric or imperial units)

Information regarding the labeling of fish products is available on the
CFIA web site at:

### <http://www.inspection.gc.ca/english/fssa/labeti/guide/tab15e.shtml>

### Novel Foods (Genetically Modified Foods) 

Health Canada defines novel foods as: products that have never been used
as a food; foods that result from a process that has not previously been
used for food; or, foods that have been modified by genetic manipulation
(i.e., genetically modified foods).

Pre-Market Notification: The Novel Foods Regulation (under the Food and
Drugs Act) requires that pre-market notification be made to Health
Products and Food Branch (HPFB) by any company who wants to sell a
biotechnology‑derived food.

The following is Health Canada's website for information concerning the
sale of genetically modified foods in Canada:

<http://www.hc-sc.gc.ca/fn-an/gmf-agm/index-eng.php>

Contact for Novel Food Pre‑Market Notification/Submission

Novel Food Notification

Food Program

Food Directorate

Health Canada

4th Floor West

Sir Frederick G. Banting Research Center

Tunney\'s Pasture, PL 2204A1

Ottawa, Ontario K1A 0L2

[]{.mark}

### Wine, Beer and Other Alcoholic Beverages

The federal Importation of Intoxicating Liquors Act gives the provinces
and territories full control over the importation of intoxicating liquor
into their jurisdictions. Provincial liquor commissions control the sale
of alcoholic beverages in Canada and the market structure can vary
considerably from province to province. Alcoholic beverages can only be
imported through the liquor commissions in the province where the
product will be consumed. In general terms, U.S. exporters are required
to have their products "listed" by the provincial liquor control agency.
In many provinces, U.S. exporters must have a registered agent who
provides the necessary marketing support within the province to obtain a
provincial liquor board listing. As an initial step, U.S. exporters
should contact the provincial liquor board in the target market for a
listing of registered agents or consult the Office of Agricultural
Affairs wine report (CA7006) available on the FAS website under Attaché
Reports for a partial listing of agents.

-   Newfoundland Liquor Corporation --
    [http://www.nfliquor.com](http://www.nfliquor.com/)

-   Nova Scotia Liquor Corporation -
    [http://www.nsliquor.ca](http://www.nsliquor.ca/)

-   Prince Edward Island Liquor Control Commission -
    <http://www.peilcc.ca/>

-   New Brunswick Liquor Corporation --
    [http://www.nbliquor.com](http://www.nbliquor.com/)

-   Société des alcools du Québec --
    [http://www.saq.com](http://www.saq.com/)

-   Liquor Control Board of Ontario --
    [http://www.lcbo.com](http://www.lcbo.com/)

-   Manitoba Liquor Control Commission --
    [http://www.mlcc.mb.ca](http://www.mlcc.mb.ca/)

-   Saskatchewan Liquor and Gaming Authority --
    [http://www.slga.gov.sk.ca](http://www.slga.gov.sk.ca/)

-   Alberta Gaming and Liquor Commission -- <http://aglc.ca/>

-   British Columbia Liquor Distribution Branch --
    [http://www.bcliquorstores.com](http://www.bcliquorstores.com/)

-   Yukon Liquor Corporation Board --
    [http://www.ylc.yk.ca](http://www.ylc.yk.ca/)

-   North West Territories Liquor Commission - Tel.: (867) 874-2100
    <http://www.fin.gov.nt.ca/liquor/Home.aspx>

Canadian packaging and labeling requirements for wine and beer are
administered under Canada's Food and Drug Regulations and the Consumer
Packaging and Labeling Regulations. In addition to the general packaging
and labeling requirements for most foods, the regulations for alcoholic
beverages cover common names and standardized container rules. For
example, light beer in Canada is defined by regulation as beer with a
percentage alcohol of 2.6 to 4.0, by volume. Wine container sizes are
standardized and metric. The most common containers for wine are 750
milliliters or 1, 1.5 and 2 liters. The province of Quebec has
additional requirements to alcoholic beverage labeling.

### 

### Organic Foods 

The import and sale of organic food products in Canada are governed by
the same rules and regulations that apply to non-organic food products.
No distinction is made between organic and non-organic foods with regard
to import requirements. Currently, all Canadian packaging and labeling,
grade, and inspection regulations apply equally to organic and
non-organic foods.

Canadian Organic Regulations became official after they were published
in the Canada Gazette, Part II, on December 21, 2006. With the support
of the Canadian organic industry, Canada's previously voluntary system
for marketing organic food now falls under a federal regulatory
framework.

**Enforcement Date of Regulations**

Federal regulations for organic products -- the Organic Products
Regulations -- are scheduled to come into full force on June 30, 2009.
On this date, organic products marketed in or imported into Canada must
be certified by a certification body accredited by the Canadian Food
Inspection Agency (CFIA). The National Standard for Organic Agriculture,
which sets out the permitted and prohibited practices, can be accessed
online at Canadian General Standards Board

(<http://www.pwgsc.gc.ca/cgsb/on_the_net/organic/index-e.html>)

**Organic Production Standards**

The definitions of Canada's production methods for organic agriculture
and the substances used (i.e., permitted substances list) are laid out
in the Canadian General Standards Board's (CGSB) publications entitled
the *Organic Production Systems General Principles and Management
Standards* and the *Organic Production Systems Permitted Substances
List*. These documents are available on the following CGSB webpage:

<http://www.pwgsc.gc.ca/cgsb/on_the_net/organic/index-e.html>

Normally, whenever a country seeks U.S. determination of its organic
standards, the U.S. follows with a similar request of the USDA National
Organic program (NOP) by the foreign government in order to facilitate
U.S. organic exports. Given the size of the trading relationship, Canada
and the United States initiated equivalency discussions and multiple
rounds have been held to evaluate equivalency, the NOP conducts a
side-by-side comparison of the two systems to identify similarities and
differences. In the end, equivalence may exist for some products but not
for others.

### 

### Kosher Foods

In the labeling, packaging and advertising of a food, Canada's Food and
Drug Regulations prohibit the use of the word kosher, or any letter of
the Hebrew alphabet, or any other word, expression, depiction, sign,
symbol, mark, device or other representation that indicates or that is
likely to create an impression that the food is kosher, if the food does
not meet the requirements of the Kashruth applicable to it. Kosher style
foods are defined in Canada's Guide to Food Labeling and Advertising
(mentioned above). For more information on Kosher Food Marketing in
Canada, see FAS Ottawa's latest Kosher Report CA5061 available under
"Attaché Reports" from the FAS homepage at:
[https://www.fas.usda.gov](https://www.fas.usda.gov/)

**Food Fortification**

The addition of vitamins and minerals to food in Canada is controlled by
the *Food and Drug Regulations* and only foods fortified with certain
nutrients, and to levels specified in the *Regulations*, may be sold in
Canada. In 1998, Canada began a review of its food fortification policy.
The review responded to concerns that the current policy and practices
are too restrictive and that they limit the development of new products,
as well as Canadians\' access to fortified foods available in other
countries. The proposed policy is outlined in the document, Addition of
Vitamins and Minerals to Food, 2005: Health Canada\'s Proposed Policy
and Implementation Plans.
(<http://www.hc-sc.gc.ca/fn-an/nutrition/vitamin/fortification_final_doc_1-eng.php>).
It would retain current fortification practices to prevent and correct
nutritional problems, such as requiring the addition of Vitamin D to
milk to combat the childhood disease of rickets and the addition of
folic acid to flour to reduce birth defects. Fortifying foods to restore
vitamins and minerals lost through processing would also continue.

The policy would create a new provision for food fortification done at
the \"discretion\" or \"choice\" of the manufacturer (within defined
limits set by Health Canada) to meet a market demand, a process known as
discretionary fortification. The policy also calls for an expansion of
the product category of special purpose foods. The policy review is
ongoing. Health Canada is expected to draft regulations to implement the
policy, although no time frame has been announced. There will be a
comment period when the draft regulations are published in the ***Canada
Gazette*** Part I (<http://canadagazette.gc.ca/index-e.html>). The
regulatory process usually takes about 12-18 months. For more
information on food fortification, visit:

[www.healthcanada.gc.ca/fortification](http://www.healthcanada.gc.ca/fortification)

### Pet Food Labeling 

The labeling and advertising of pet food sold in Canada is governed by
the Consumer Packaging and Labeling Act and by the Competition Act as
administered by Industry Canada. This oversees that pet food labels and
advertising are truthful and verifiable. The manufacture and sale of pet
food, however, is not regulated in Canada by the CFIA or by any other
governmental department. There are voluntary quality assurance programs
in place that deal with the quality, safety and nutritional value of pet
food for pets. The Canadian Veterinary Medical Association (CVMA)
operates a voluntary pet food certification program for pet food
manufacturers that sets basic quality standards. Manufacturers can
voluntarily submit their pet foods for testing based on the CVMA
nutritional and digestibility standards. For more information, go to:

[http://canadianveterinarians.net](http://canadianveterinarians.net/)

**Animal Health Requirements Related to Pet Food**

The Canadian Food Inspection Agency issued the following directive in
2006 regarding imports of pet foods and chews that include products of
ruminant origin.

Commercially prepared Pet Food (including pet treats):

1**.** Cooked canned commercially prepared pet food containing animal
by-products (bone meal, meat meal, blood meal, rendered animal fats,
glue stock, meat, inedible meat). From the United States: Proof of
origin acceptable to the CBSA, a copy of the list of ingredients, and a
written declaration from the importer (dated, signed, and linked to the
shipment being imported) stating that (1) there are no ingredients
derived from bovine animals in the pet food, or (2) the bovine
ingredients in the pet food are not derived from Specified Risk Material
(SRM), or (3) the bovine animals from which the pet food ingredients are
derived originated from the U.S. or Canada or a country considered to be
of negligible BSE-risk by the CFIA (Argentina, Australia, Brazil, Chile,
New Zealand or Uruguay).

2\. For pet food containing ingredients of ruminant (bovine, ovine or
caprine) origin, the designated country must be free of foot-and mouth
disease (FMD) and of negligible risk (category 1) for bovine spongiform
encephalopathy (BSE). Dried pet chews such as cattle ears, bull pizzles
and cow hooves must come from countries free from foot-and-mouth disease
only (BSE is not a disease of concern for these last products). For
finished rawhide pet chews, there are no diseases of concern.

Rawhide Pet Chews: From the United States**:** Proof of origin
acceptable to the Canadian Border Services Agency, and a written
declaration from the importer (dated, signed, and linked to the shipment
being imported) stating that the finished product does not contain any
hides or skins from the head of a ruminant.

If the pet food contains ingredients of porcine origin, designated
country must be free of foot-and-mouth disease, swine vesicular disease,
African swine fever, and classical swine fever (hog cholera).

If the pet food contains ingredients of avian origin, the designated
country must be free from Velogenic Newcastle disease and pathogenic
avian influenza (fowl plague).

### Livestock Feeds

Using the authority of the federal Feeds Act, the Canadian Food
Inspection Agency administers a national livestock feed program to
regulate domestic and imported livestock feeds. The program is delivered
by means of pre-sale product evaluation and registration by staff of the
Feed Section, and post-market inspection and monitoring by Agency field
staff located in all provinces of Canada. As an initial step, U.S.
livestock feed exporters must apply to have the feed registered in
Canada. They must also retain an agent who is resident in Canada and has
the legal authority to act on their behalf. For more information on how
to meet requirements for livestock feeds in Canada and the on-line forms
for product registration and resident agent, go to:

<http://www.inspection.gc.ca/english/anima/feebet/feebete.shtml>

### 

## Labeling Claims

### Meat Labeling Claims

All meat and meat product labels used in Canada must be registered with
the following CFIA office. Ideally this should be done prior to
application for the labels with the claims on them. CFIA requires three
proof copies of the intended labels for Canada, as well as an
application form #1478 available from CFIA), formulation and processing
methods. CFIA will not review existing U.S. marketplace labels.

Dr. Mark Bielby, D.V.M.

Recipe and Label Registration Unit

Canadian Food Inspection Agency

8 Colonnade Rd.

Ottawa, Ontario, Canada K1A 0Y9

Telephone: (613) 221-1428

Fax: (613) 228-6622

<Mark.Bielby@inspection.gc.ca>

The term "natural \" cannot be used on any meat product in Canada, as it
is felt that the term cannot be defined properly in terms of the context
of food production. Any natural product can only have come from
completely wild and unfarmed animals that are harvested and processed.
However, the Method of Production protocol can be submitted to CFIA
prior to label application. The phrase must be worded exactly as printed
in the Canadian policy on Method of Production claims. This can be
obtained by request from Dr. Bielby's office.

A written protocol must be submitted to the Label Registration Unit.
This must include a written description of the procedures that are in
place to validate the claim made (e.g. ,raised without the use of
antibiotics would require evidence from birth, from hatcheries and feed
mills, if applicable, from slaughter and from processing that there is
segregation of the product from the conventional line). These protocols
must be audited by an independent third person auditor who then will
send a report to CFIA. There are 20-30 common method of production
claims that have been approved by the Fair Labeling Unit. Some of these
are:

-   Raised without the use of antibiotics (this includes anticoccidials)

-   Raised without the use of added hormones

-   Raised without animal by-products

-   Free-range

-   Free run

-   Grain Fed

-   Vegetable Grain Fed

-   Milk-fed veal

This above list is not exhaustive, and any company may propose a Method
of Production claim for review by CFIA.

### 

### Diet-Related Health Claims

The 2002 amendments to the *Food and Drug Regulations* allow
diet-related health claims on foods for the first time in Canada. These
claims are based on sound scientific evidence that has established a
relationship between certain elements of healthy diets and reduction of
risk of certain diseases. A diet-related health claim is a statement
that describes the characteristics of a diet that may reduce the risk of
developing a diet-related disease or condition, such as osteoporosis or
stroke, and the properties of a food that make it a suitable part of the
diet. For more information, go to:

<http://www.hc-sc.gc.ca/fn-an/label-etiquet/claims-reclam/index-eng.php>

For example, the label of or an advertisement for a food which is low in
sodium might carry the following diet-related health claim (providing
specific composition and labeling conditions are met): \"A healthy diet
containing foods high in potassium and low in sodium may reduce the risk
of high blood pressure, a risk factor for stroke and heart disease.
(Naming the food) is low in sodium.\"

The Regulations provide for claims that deal with the following
relationships:

-   A diet low in sodium and high in potassium, and the reduction of
    risk of hypertension;

-   A diet adequate in calcium and vitamin D, and the reduction of risk
    of osteoporosis;

-   A diet low in saturated fat and *trans* fat, and the reduction of
    risk of heart disease;

-   A diet rich in vegetables and fruits, and the reduction of risk of
    some types of cancer; and

-   Minimal fermentable carbohydrates in gum, hard candy or
    breath-freshening products, and the reduction of risk of dental
    caries.

### 

### Food Allergens

In Canada, the nine Priority Food Allergens are peanuts, tree nuts
(almonds, Brazil nuts, cashews, hazelnuts (filberts), macadamia nuts,
pecans, pine nuts, pistachios, walnuts), sesame seeds, milk, eggs, fish
(including crustaceans (e.g. crab, crayfish, lobster, shrimp) and
shellfish (e.g. clams, mussels, oysters, scallops), soy, wheat and
sulphites. According to the CFIA, these Priority Allergens have been
shown to account for more than 90% of severe adverse reactions related
to food allergens. The CFIA recommends that food companies establish
effective allergen controls to minimize the potential for allergic
reactions. When the CFIA becomes aware of a potential serious hazard
associated with a food, such as undeclared allergens, the CFIA
investigates and takes all appropriate action to protect consumers,
which may include a recall of the food product.

A CFIA industry reference guide with regard to the food allergens and
labeling is available at the following website:

<http://www.inspection.gc.ca/english/fssa/labeti/allerg/allerge.shtml>

### 

## Sample Products

## 

Food samples for research, evaluation, or display at trade shows and
food exhibitions are permitted entry, but may not be offered for
commercial sale. For meat, poultry, dairy or egg, and fruits and
vegetable samples it is recommended that exhibitors apply for an import
permit and declare that the food is not for resale.

Apply at:

CFIA Permit Office

59 Camelot Drive

Nepean, Ontario K1A 0Y9

Fax: (613) 228-6605.

Entry at the border will be facilitated if U.S. exporters show proof of
their food exhibition participation and that the products are of U.S.
origin. Up to 10 samples are permitted entry, but the weight of each may
not exceed 100 kilograms (about 220 pounds). Entries for personal
consumption are generally restricted to 20 kg.

## Test Marketing: Processed Food Products

Canada\'s Processed Product Regulations permit, in special instances
only, the test marketing of domestically manufactured or imported
processed food products that may not meet packaging, labeling, or
compositional requirements of the regulations. However, the provision is
designed to facilitate the marketing of new products of a type that are
new, unique and unavailable in Canada. U.S. companies should note that
it does not apply to U.S. brand introductions into Canada for processed
foods of a type already available on retail shelves. By regulation, for
a food to be granted a Test Market Food status, it must never have been
sold in Canada in that form and must differ substantially from any other
food sold in Canada with respect to its composition, function, state or
packaging form. In the case of imported foods, applications for test
marketing must be submitted to the Canadian Food Inspection Agency by
the Canadian importer who may be granted authorization to test market a
food product for a period of up to 12 months.

A dealer wishing to conduct a test market must, six weeks prior to
conducting the test market, file a Notice of Intention to Test Market in
the prescribed form and manner. The Notice of Intention to Test Market
should be completed on company letterhead and should include the
following:

a\) A description of the prepackaged product, together with submission
of a sample in prepackaged form or alternatively, an illustration of the
prepackaged product and the label;

b\) The quantity to be distributed;

c\) The period of time for test marketing (maximum period is 12 months);
and

d\) The geographic area or region in which the test market is to be
conducted.

e\) Dealers must also include information, with supporting data, to
substantiate that the test market product was not previously sold in
Canada in that form and to establish that it differs substantially from
any other product sold in Canada with respect to its composition,
function, state or packaging form.

The Notice of Intention to Test Market should be addressed to:

Director, Bureau of Food Safety and Consumer Protection\
Canadian Food Inspection Agency\
159 Cleopatra Drive\
Nepean, Ontario, K1A 0Y9

## Temporary Marketing Authorization Letter (TMAL)

There is a distinction between a Test Market Food and a food that has
received Temporary Marketing Authorization**.**

A Temporary Marketing Authorization Letter (TMAL), issued by the
Assistant Deputy Minister of the Health Products and Food Branch, Health
Canada, authorizes the sale of a food that does not meet one or more of
the compositional, packaging, labeling or advertising requirements under
the *Food and Drugs Act and Regulations*. The authorization is granted
for a specified period of time, within a designated area and in a
specified quantity for a specific manufacturer or distributor. A TMAL
does not exempt foods from the requirements under the *Consumer
Packaging and Labeling Act and Regulations*.

The purpose of a Temporary Marketing Authorization is to generate
information in support of a proposed amendment to the *Food and Drug
Regulations*.

For example, as a condition for obtaining a TMAL for the use of
non-permitted labeling on a food, the companies involved agree:

-   To use only those non-permitted labeling statements approved by the
    Health Products and Food Branch,

-   To use these to carry out studies to determine consumer attitudes to
    the labeling and advertising material, and

-   To submit the results of these studies to the Health Products and
    Food Branch.

Once the TMAL is issued, those manufacturers or producers of foods that
are subject to mandatory label registration through the CFIA (such as
registered meats and processed products) will be expected to follow
normal procedures to register their labels.

Applications for a Temporary Marketing Authorization Letter should be
addressed to:

Assistant Deputy Minister

Health Products and Food Branch

Health Canada

Ottawa, Ontario K1A 0L2

U.S. companies should note that it does not apply to U.S. brand
introductions into Canada for processed foods of a type already
available on retail shelves. In the case of imported foods, applications
for test marketing must be submitted to the Canadian Food Inspection
Agency by the Canadian importer who may be granted authorization to test
market a food product for a period of up to 12 months.

A dealer wishing to conduct a test market must, six weeks prior to
conducting the test market, file a Notice of Intention to Test Market in
the prescribed form and manner. The Notice of Intention to Test Market
should be completed on company letterhead and should include the
following:

a\) A description of the prepackaged product, together with submission
of a sample in prepackaged form or alternatively, an illustration of the
prepackaged product and the label;

b\) The quantity to be distributed;

c\) The period of time for test marketing (maximum period is 12 months);
and

d\) The geographic area or region in which the test market is to be
conducted.

e\) Dealers must also include information, with supporting data, to
substantiate that the test market product was not previously sold in
Canada in that form and to establish that it differs substantially from
any other product sold in Canada with respect to its composition,
function, state or packaging form.

The Notice of Intention to Test Market should be addressed to:

Director, Bureau of Food Safety and Consumer Protection\
Canadian Food Inspection Agency\
159 Cleopatra Drive\
Nepean, Ontario, K1A 0Y9

Questions regarding any procedural details in applying for the TMAL may
be addressed to:

Chief, Nutrition Evaluation Division\
Bureau of Nutritional Sciences, Food Directorate\
Health Products and Food Branch\
Health Canada\
Ottawa, Ontario K1A 0L2\
Tel. (613) 957-0352\
Fax (613) 941-6636

### 

## Interim Marketing Authorization

The Interim Marketing Authorization (IMA), allows the sale of foods not
in compliance with the regulations while an amendment to permit their
ongoing legal sale is being processed. Permission is given through the
publication of a Notice of Interim Marketing Authorization in *Canada
Gazette* Part I and is effective beginning on the date of publication.

Categories of amendments eligible for IMA are limited to a food which:

a\) Contains an agricultural chemical or any of its derivatives in
excess of the maximum residue limit that has been established in
Division 15, or for which a maximum residue limit has not been
established; or

b\) Contains a veterinary drug in excess of the maximum residue limit
established in Division 15, *FDR*, or for which a maximum residue limit
has not yet been established; or

c\) Contains a food additive in excess of the level of use listed in
Division 16, *FDR*, or for which there are no provisions in Division 16,
*FDR*; or

d\) Contains an ingredient in a form not listed in the standard for that
food in the *Food and Drug Regulations*; or

e\) Contains an added vitamin or mineral nutrient for which no provision
is found in the Table to Division 3, Part D, *FDR,* or which is present
at a level that is at variance with the prescribed level.

An IMA does not have a fixed duration but remains in effect until the
proposed regulatory amendment is promulgated in *Canada Gazette* Part
II.

For more information, contact:

Director\
Bureau of Food Regulatory, International and Interagency Affairs\
A.L. 0702C\
Health Canada\
Ottawa, Ontario K1A 0L2\
Tel. (613) 957-1828\
Fax (613) 941-3537

### 

## Copyright and/or Trademark Laws

The federal agency responsible for registering trademarks in Canada is
the Trademarks Office, part of a larger agency called the Intellectual
Property Office, which is part of Industry Canada.

Registered trademarks are entered on the Trademark Register and can
provide U.S. companies direct evidence of ownership. Trademark
registrations are valid for 15 years in Canada.

To register a trademark, an application (with fee) must be sent to the
Trademarks Office. In most instances, a trademark must be used in Canada
before it can be registered. The Trademarks Office advises that
companies hire a registered trademark agent to search existing trade
names and trademarks. It will provide a list of registered agents upon
request. For further information on making an application for a
trademark in Canada, contact:

The Trade-marks Branch

Canadian Intellectual Property Office

Industry Canada

50 Victoria Street

Place du Portage, Phase 1

Hull, Quebec K1A 0C9

Telephone: (613) 997-1936

For more information about trademarks see Canada's Intellectual Property
Office website at:

<http://www.cipo.ic.gc.ca/epic/site/cipointernet-internetopic.nsf/en/h_wr00002e.html>

# SECTION III. MARKET SECTOR STRUCTURE AND TRENDS

Besides the market opportunities created by reduced tariffs, changing
lifestyles in Canada are helping increase the demand for U.S.
agricultural products.

U.S. food exporters face a knowledgeable and more demanding consumer. To
be successful in the Canadian marketplace U.S. exporters should study
and understand Canadian food trends. Agriculture & Agri-food Canada has
identified the following as some current factors driving consumer food
spending trends:

-   Variety: Strong demand for new and innovative foods on store shelves
    and on restaurant menus. Growing popularity of imported exotic
    fruits and vegetables, ethnic foods and restaurant concepts.

-   Quality and freshness: Consumers are willing to pay more for
    quality. For many consumers, freshness means quality. Many
    private-label products offer exceptional quality for the price
    (value).

-   Convenience: Time pressures of dual-earner and lone-parent families'
    increases demand for convenience foods (prepared meals, microwave
    foods, sauces and condiments, fresh chilled prepared foods, \"home
    meal replacements\") and for foodservice (i.e. take-out foods).

-   Health and nutrition: Health-conscious Canadians, especially ageing
    baby boomers, are eating more fruits, vegetables and \"light\" foods
    (low fat, cholesterol, sodium, etc). Current reviews of nutrition
    labeling may address heightened demand for more information about
    nutritional content of foods. Functional foods and nutraceuticals
    may offer future opportunities.

-   Environmental concerns: Especially among the youth market,
    environmental concerns may have implications for food demand
    (processing, bulk packaging, organic foods, and avoidance of certain
    food product categories (i.e., meat).

-   Safety of the food supply: Heightened media attention to such issues
    as mad cow disease, product recalls, food irradiation, biotech
    foods, etc.

-   Access to information: Consumers more connected, aware and
    demanding.

Immigration patterns have changed the face of Canadian cities, where 75
percent of Canada's population resides. Immigration in the 1990s was
dominated by newcomers of Asian origin, who now account for about 10
percent of the population of Canada's two largest cities, Toronto and
Vancouver. The combination of the influx of Asian, as well as other
ethnic origin immigrants with contrasting dietary traditions, and the
trend among consumers for a healthier diet has transformed the Canadian
food supply. Compared to twenty years ago, Canadians are consuming less
sugar, animal fats (including butter and lard), red meat, eggs, canned
vegetables, skim milk powder, and alcoholic beverages and more rice,
breakfast cereals, nuts, vegetable-based fats, chicken, fish, fresh
vegetables, cheese, yogurt, coffee, and soft drinks.

## Market Sector Reports

Listed below are the food sector and marketing reports submitted by the
Office of Agricultural Affairs, Ottawa, Canada. The reports offer
profiles of each sector and summarize the key developments and market
opportunities for new U.S. sales. For a complete listing of other Post
reports and of FAS' worldwide agricultural reporting, visit the FAS home
page at [http://www.fas.usda.gov]{.underline} and click on "Attaché
Reports". Insert the Report number in the table below into the
appropriate field to access the desired report.

  ----------- ------------------------------------------------- ----------
  **AGR       **Title of Report**                               **Date**
  REPORT#**                                                     

  CA0174      Pet Food Industry Product Brief                   11/06/00

  CA2001      Organic Food Industry Report                      01/04/02

  CA2002      Convenience & Non-Traditional Grocery Outlets     01/04/02
              Report                                            

  CA2021      Quebec as a Market for U.S. Wines                 02/05/02

  CA2026      Controversial Quebec Plan for Wine Marketing      03/15/02

  CA2037      Quebec Beer Industry Overview                     04/15/02

  CA2078      Canadian Seafood Industry                         07/10/02

  CA2100      Exporting U.S. Wine to Ontario                    08/20/02

  CA2115      Vending Machine Food Distribution in Canada       10/24/02

  CA2124      Asian-Style Foods in the Canadian Market          10/23/02

  CA2125      An Overview of Selected Segments of the Canadian  10/24/02
              Frozen Food Industry                              

  CA3001      Canada Introduces Mandatory Nutrition Labeling    01/03/03

  CA3006      Snack Food Market In Canada                       01/24/03

  CA3041      Food & Beverage Shows                             07/14/03

  CA3075      Packaging & Retailing Trends in Fresh Produce     11/20/03

  CA5061      Kosher Report                                     09/26/05

  CA5068      Food Brokers Report                               10/06/05

  CA6019      Private Label Report                              04/28/06

  CA6040      Canada Connect Matchmaker Program                 09/09/05

  CA7004      Organic Regulations                               02/06/07

  CA7006      Exporting Wine to Canada                          02/06/07

  CA7054      Canadian Beer Market for U.S. Exporters           10/09/07

  CA7063      Retail Report                                     01/23/08

  CA7066      Exporter Guide                                    01/07/08

  CA8043      GST/HST and How it Applies to Food/Agriculture    05/12/08

  CA8048      HRI Food Service Sector Report                    07/03/08

  CA8050      Food Processing Sector Report                     07/22/08

  CA8055      FAIRS Report (Annual)                             08/08/08

  CA8069      FAIRS Export Certificate Report                   09/23/08
  ----------- ------------------------------------------------- ----------

# SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS

Canada\'s wholesale, retail, and food service industries watch with
acute interest developments in packaged and processed foods and food
service trends in the United States. While there are differences in the
consumption patterns of selected food items in the two countries, there
is a growing demand in Canada for new value-added foods that are
market-proven in the United States.

During FY 2008, a number of consumer-oriented agricultural product
categories posted record sales to Canada. The top five categories are
fresh vegetables (\$1.5 billion), fresh fruit (\$1.4 billion), snack
foods (\$1.3 billion), red meat (\$1.1 billion) and processed fruits and
vegetables (\$923 million). Combined, items in these categories
accounted for more than half of total U.S. exports consumer-oriented
agricultural product to Canada.

## 

**What's Hot?**

What's hot in the Canadian retail grocery market? What are some of the
trends in retail grocery sales that U.S. exporters can capitalize on?
While the previous paragraphs identify the leading U.S.
consumer-oriented agricultural product categories that are dominating
U.S. agricultural exports to Canada, the following are some of the
hottest and trendiest foods and food trends capturing consumer attention
and increased market share:

**Pre-packaged Foods with Low Levels of Trans Fats**

Canada is the first country to require that the levels of trans fat in
pre-packaged food be included on the mandatory Nutrition Facts table.
That requirement took effect on December 12, 2007. It was intended, in
part, to act on food labels as an incentive for the food industry to
decrease the trans fat content of foods, and Health Canada (HC) says
that it has clearly had the desired effect as demonstrated by the
significant number of products on the Canadian market that have already
been reformulated. In June 2007, the HC called on industry to
voluntarily reduce the levels of trans fat in the Canadian food supply
to the lowest levels recommended by the Trans Fat Task Force, and
announced that the government would monitor the progress. Canada's Trans
Fat Task Force recommended a trans fat limit of 2% of the total fat
content for all vegetable oils and soft, spreadable margarines, and a
limit of 5% of the total fat content for all other foods, including
ingredients sold to restaurants. HC has asked industry to show
significant progress by June 2009 to reduce trans fats levels, or it
will introduce regulations to ensure the levels are met. HC has begun to
monitor trans fat levels in Canada and released its second report in
July 2008. The results are available on the HC website at:

<http://www.hc-sc.gc.ca/fn-an/nutrition/gras-trans-fats/tfa-age_tc-tm_e.html>

**Organics**

Sales of organic foods continue to increase. The U.S. supplies about 85%
of the total market in Canada for prepackaged organic foods. In Canada,
organic food sells at a moderate price premium and sales are forecast to
rise, especially as quality and availability matches that of
conventionally produced foods.

Canada is an important market for U.S. organic food. In fact, Canadian
organic production has concentrated on exports, mostly of bulk grains
and oilseeds. Canada's retail market for organic food is supplied mostly
by imports from the United States. Currently, about 80-85% of the demand
for organic produce and approximately 90% of the demand for organic
grocery products in Canada is met by imports from the United States.

**Functional Foods/Superfoods**

Functional foods, often referred to as "Superfoods" are gaining wide
popularity among Canadian consumers focused on choosing foods that may
help prevent disease and aging. Blueberries, almonds, yogurt, kefir, and
even dark chocolate are some of the foods that are gaining favor in
Canada as the new "Superfoods".

**Low Sodium Foods**

Canadian consumers are becoming more conscious about the level of sodium
in prepackaged processed foods and in restaurant meal foods. A Canadian
coalition of health groups is urging the Canadian government to set
graduated targets for sodium according to food categories and to monitor
the food industry's progress.  Figures from Statistics Canada show that
the average Canadian consumes in excess of 3,100 mg of sodium a day with
the major source identified as processed foods.  Health Canada (like the
U.S. National Academy of Sciences) has determined that an appropriate
daily intake for a healthy adult is 1,200mg to 1,500mg of sodium.
Canada's Minister of Health recently announced the establishment of a
Sodium Working Group as a first step towards the development of a
long-term national strategy to reduce dietary sodium levels.

# 

# SECTION V. ROAD MAP FOR MARKET ENTRY 

**Entry Strategy**

U.S. food product manufacturers seeking to enter the Canadian
marketplace have vast opportunities. Canada is the U.S.'s primary
trading partner -- more than 64 percent of Canada's manufactured food
imports originate from the United States. This is a result of a number
of factors, including a convenient shipping corridor and a familiarity
between consumer tastes and expectations.

Although Canadians are always on the lookout for new and innovative U.S.
product, there are a number of obstacles U.S. exporters must overcome
before exporting to Canada. These may include currency, customs
procedures and labeling requirements.

Overcoming these obstacles is simple with the right tools. Following are
the main steps to take for U.S. exporters entering the Canadian market:

1.  Contact your state regional trade office.

2.  Research the competitive marketplace.

3.  Locate a broker/distributor.

4.  Understand Canadian government standards and regulations that
    pertain to your product.

Step 1: Contact your State Regional Marketing Association

The State Regional Trade Group offices exist to help promote the export
of food and agricultural products from specific geographical regions of
the country and can in some cases provide financial assistance as well
as marketing advice. Contact the office in your area.

+--------------+-----------------------+------------------------------+
| State        | Web Site              | States                       |
| Regional     |                       |                              |
+--------------+-----------------------+------------------------------+
| Food Export  | [http://www.foodexp   | Connecticut, Delaware,       |
| USA          | ortusa.org](http://ww | Maine, Massachusetts, New    |
|              | w.foodexportusa.org/) | Hampshire, New Jersey, New   |
| Northeast    |                       | York, Pennsylvania, Rhode    |
|              |                       | Island, Vermont              |
+--------------+-----------------------+------------------------------+
| Food Export  | [www.f                | Illinois, Indiana, Iowa,     |
| Association  | oodexport.org](http:/ | Kansas, Michigan, Minnesota, |
| of the       | /www.foodexport.org/) | Missouri, Nebraska, North    |
| Midwest USA  |                       | Dakota, Ohio, South Dakota,  |
|              |                       | Wisconsin                    |
+--------------+-----------------------+------------------------------+
| Southern     | [ht                   | Alabama, Arkansas, Florida,  |
| U.S. Trade   | tp://www.susta.org](h | Georgia, Kentucky,           |
| Association  | ttp://www.susta.org/) | Louisiana, Maryland,         |
| (SUSTA)      |                       | Mississippi, North Carolina, |
|              |                       | Oklahoma, South Carolina,    |
|              |                       | Tennessee, Texas, Puerto     |
|              |                       | Rico, Virginia & West        |
|              |                       | Virginia                     |
+--------------+-----------------------+------------------------------+
| Western U.S. | [http                 | Alaska, Arizona, American    |
| Agricultural | ://www.wusata.org](ht | Samoa, California, Colorado, |
| Trade        | tp://www.wusata.org/) | Guam, Hawaii, Idaho,         |
| Association  |                       | Montana, New Mexico, Oregon, |
| (WUSATA)     |                       | Utah, Washington, Wyoming    |
+--------------+-----------------------+------------------------------+

Step 2: Research the competitive marketplace

The State Regional Offices will often have information on specific
markets that they can provide to aid in market research. Additionally,
the CANADA CONNECT Matchmaker Program provides an element to assist in
determining the acceptance of your product in Canada (See Step 3 below).
Another means of finding a broker/distributor to represent you is by
exhibiting in one of the FAS endorsed Canadian shows. FAS endorses a
U.S. Pavilion at the Canadian Restaurant and Foodservice Trade Show
(CRFA), the largest foodservice show in Canada, held annually in Toronto
CRFA - <http://www.crfa.com/tradeshows/crfashow/> and SIAL Montreal,
<http://www.sialmontreal.com/home.ch2> the largest retail food industry
show in Canada, held annually in Montreal. Information on both of these
shows is available on-line or by contacting email:
<agottawa@fas.usda.gov>

Step 3: Locate a Broker/Distributor

It is recommended that most new entrants to the Canadian market secure
the services of a broker and/or distributor.

The USDA/FAS Office of Agricultural Affairs, U.S. Embassy Canada can
provide assistance in locating a broker/distributor. Services available
to help exporters locate appropriate brokers/distributors include USDA
endorsed pavilions at various Canadian trade shows (see
<http://www.ats.agr.gc.ca/events/events_canada-e.htm> for a complete
listing of trade shows in Canada) and a matchmaker program entitled,
CANADA CONNECT, a program that provides market information and meetings
with potential, pre-screened, buyers.

FAS endorse two trade shows in Canada each year. The Canadian Restaurant
and Foodservice Association show, a foodservice trade only show held
annually in Toronto, Ontario and SIAL Montreal, primarily a retail trade
only show held annually in Montreal, Quebec. Contact Sharon Cook,
USDA/FAS Washington, DC <Sharon.cook@usda.gov> for further details on
participation in the USA Pavilion at these shows.

A partial listing of Canadian food brokers is available on our report
CA5068 on the FAS web site.

Step 4: Review this Exporter Guide for Canadian government standards and
regulations that pertain to your product and contact one of the CFIA
Import Service Centers across Canada
(<http://www.canadabusiness.ca/servlet/ContentServer?pagename=CBSC_FE/display&c=Services&cid=1081944201787&lang=en>)
for further information. However, Canadian agents, distributors,
brokers, and/or importers are also equipped to assist exporters through
the regulatory import process.

Canadian agents, distributors, brokers, and/or importers are often the
best equipped to assist exporters through the regulatory import process.
The best entry method depends on the food product and the sub-sector
identified as appropriate for each food product. Government and industry
import policies and trade acts regulate each sub-sector. Each U.S.
export opportunity must be thoroughly investigated relative to the
legislation that exists for the product requesting entry.

# SECTION VI. QUESTIONS AND ANSWERS

The following are some of the common questions asked by U.S. food and
agricultural product exporters to the staff at the Office of
Agricultural Affairs in Ottawa.

1\. Question: Will the FAS office in Ottawa assist me with my label
review?

Answer: The Canadian Food Inspection Agency consolidates federal food
label review under its \"Food Labeling Information Service\". At
regional locations across Canada, these offices coordinate the
requirements of all federal departments to simplify product approval and
label compliance. It is recommended that U.S. exporters submit their
labels to the regional office closest to the targeted marketing area
(see list on page 8).

2\. Question: How long does it take to get a label review?

Answer: If the U.S. exporter provides sufficient information with their
submission to CFIA, a complete label assessment can be accomplished in
about two weeks.

3\. Question: How do I find a distributor?

Answer: The USDA/FAS Office of Agricultural Affairs, U.S. Embassy Canada
can provide assistance in locating a broker/distributor. Services
available to help exporters locate appropriate brokers/distributors
include USDA endorsed pavilions at various Canadian trade shows and a
matchmaker program entitled, CANADA CONNECT, aimed at assisting new to
market companies.

4\. Question: I know that Canada has a tariff rate quota for certain
dairy and poultry products. How do I know if my particular dairy or
poultry product is going to be affected by Canadian tariff rate quotas?

Answer: For a determination as to whether or not the product you intend
to export into Canada is within the scope of Canada's tariff rate quota
(TRQ), contact Ms. Kelly Bartlett, Canada Border Services Agency (CBSA),
Food, Chemicals, Plastics and Rubber Unit, at (613) 957-1468.

5\. Question: How do I identify the major Canadian importers of my
product(s)?

Answer: Industry Canada (IC) has a database of major Canadian importers
by product type. Access the database at the IC web page:
<http://strategis.ic.gc.ca/sc_mrkti/cid/engdoc/index.html>

6\. Question: Will there be import duties on my food products entering
Canada?

Answer: Under provisions of the U.S./Canada Free Trade Agreement and the
North American Free Trade Agreement, all Canadian import duties on all
U.S. food and commercial products have been phased out (with the
exception of over-quota tariffs on dairy and poultry products). However,
there are federal excise taxes and surcharges on alcoholic beverages.

7\. Question: I've heard that U.S. fruit and vegetable exporters can't
sell apples or potatoes to Canada. Is this true?

Answer: There are package-size regulations restricting bulk imports if
Canadian supplies are available but imports in consumer and wholesale
sized packages are permitted. Commonly referred to as Canada's "bulk
waiver" requirement (or ministerial exemption), processors or packers
must apply to the Canadian Food Inspection Agency (CFIA) for a special
exemption to import bulk products. In late 2007, the U.S. and Canada
inked an arrangement to facilitate bilateral potato trade. The
arrangement will provide U.S. potato producers with predictable access
to Canadian Ministerial exemptions.

8\. Question: My company is new to exporting. Can I test market my
product(s) in Canada with my U.S. label? I don't want to produce a label
for the Canadian market until I know it will be successful.

Answer: Canada's test marketing provision is designed to facilitate the
marketing of new products of a type that are new, unique and unavailable
in Canada. It does not apply to U.S. brand introductions into Canada for
processed foods commonly found on retail shelves.

# SECTION VII. CONTACTS

Office of Agricultural Affairs

U.S. Embassy, Canada

P.O. Box 5000

Ogdensburg, NY 13669-0430

Telephone: (613) 688-5267

Fax: (613) 688-3124

Email: agottawa@fas.usda.gov

Robin Tilsworth, Agricultural Minister-Counselor

Lisa Anderson, Agricultural Attaché

George C. Myles, Senior Agricultural Specialist

Darlene Dessureault, Agricultural Specialist

Joyce Gagnon, Administrative Assistant

# APPENDIX I. SUMMARY OF USEFUL WEBSITES

The following is a listing of the major Canadian websites mentioned in
the body of this report:

  -------------------- --------------------------------------------------
  **Canada Border      
  Services Agency**    

  Home Page            <http://www.cbsa-asfc.gc.ca/menu-eng.html>
  -------------------- --------------------------------------------------

[]{.mark}

+-------------------+--------------------------------------------------+
| []{.mark}         |                                                  |
|                   |                                                  |
| **Canadian Food   |                                                  |
| Inspection        |                                                  |
| Agency**          |                                                  |
+-------------------+--------------------------------------------------+
| Home Page         | <http://www.inspection.gc.ca/>                   |
+-------------------+--------------------------------------------------+
| Acts and          | <htt                                             |
| Regulations       | p://www.inspection.gc.ca/english/reg/rege.shtml> |
+-------------------+--------------------------------------------------+
| Guide to Food     | <http://www.inspec                               |
| Packaging and     | tion.gc.ca/english/fssa/labeti/guide/toce.shtml> |
| Labeling          |                                                  |
+-------------------+--------------------------------------------------+
| Meat & Poultry    | <http://www.ins                                  |
| Products          | pection.gc.ca/english/fssa/meavia/meaviae.shtml> |
+-------------------+--------------------------------------------------+
| Fish Products     | <http://www.inspection.gc.ca/e                   |
| Manual            | nglish/anima/fispoi/manman/fpimip/toctdme.shtml> |
+-------------------+--------------------------------------------------+

[]{.mark}

+-------------------+--------------------------------------------------+
| **Health Canada** |                                                  |
+-------------------+--------------------------------------------------+
| Home Page         | <http://www.hc-sc.gc.ca/index-eng.php>           |
+-------------------+--------------------------------------------------+
| Food and Drugs    | <http://www.hc-sc.gc.ca/                         |
| Act               | fn-an/legislation/acts-lois/act-loi_reg-eng.php> |
+-------------------+--------------------------------------------------+
| Nutrition         | <http://www.hc-sc.g                              |
| Labeling          | c.ca/fn-an/label-etiquet/nutrition/index_e.html> |
+-------------------+--------------------------------------------------+
| Genetically       | <htt                                             |
| Modified (GM) and | p://www.hc-sc.gc.ca/fn-an/gmf-agm/index-eng.php> |
| Other Novel Foods |                                                  |
|                   | []{.mark}                                        |
+-------------------+--------------------------------------------------+

[]{.mark}

  -------------------- ---------------------------------------------------------------
  **Department of      
  Foreign Affairs and  
  International        
  Trade**              

  Home Page            [http://www.dfait-maeci.gc.ca](http://www.dfait-maeci.gc.ca/)
  -------------------- ---------------------------------------------------------------

[]{.mark}

+-------------------+--------------------------------------------------+
| **Justice         |                                                  |
| Department**      |                                                  |
+-------------------+--------------------------------------------------+
| On-Line Access to | [http                                            |
| Official Canadian | ://www.justice.gc.ca](http://www.justice.gc.ca/) |
| Acts &            |                                                  |
| Regulations       | []{.mark}                                        |
+-------------------+--------------------------------------------------+

[]{.mark}

  -------------------- ----------------------------------------------------------------------------------------
  **Pest Management    
  Regulatory Agency**  

  Pesticides and Pest  <http://www.hc-sc.gc.ca/cps-spc/pest/index-eng.php>
  Management           

  Maximum Residue      <http://www.hc-sc.gc.ca/cps-spc/pest/protect-proteger/food-nourriture/mrl-lmr-eng.php>
  Limits for           
  Pesticides           
  -------------------- ----------------------------------------------------------------------------------------

# []{.mark}

# APPENDIX II. STATISTICS

## [Table A. Key Trade and Demographic Information]{.mark}

+----------------------------------------------------+-----------------+
| Agricultural Imports From All Countries/2007/U.S.  | \$23.6 billion  |
| Market Share 1/                                    | / 59%           |
+----------------------------------------------------+-----------------+
| []{.mark}                                          | \$17.5 billion  |
|                                                    | / 61%           |
| Consumer Food Imports From All Countries/2007/U.S. |                 |
| Market Share                                       |                 |
+----------------------------------------------------+-----------------+
| []{.mark}                                          | \$1.7 billion / |
|                                                    | 41%             |
| Edible Fishery Imports From All Countries/2007/    |                 |
| U.S. Market Share                                  |                 |
+----------------------------------------------------+-----------------+
| []{.mark}                                          | 33.3 million    |
|                                                    |                 |
| Total Population, July 2008                        |                 |
+----------------------------------------------------+-----------------+
| []{.mark}                                          | 26.9 mil./6.3   |
|                                                    | mil/            |
| Urban Population / Rural Population / Percent      |                 |
| Rural/2006                                         | 19%             |
+----------------------------------------------------+-----------------+
| []{.mark}                                          | 35              |
|                                                    |                 |
| Number of Metropolitan Areas Over 100,000          |                 |
+----------------------------------------------------+-----------------+
| []{.mark}                                          | \$46,687        |
|                                                    |                 |
| Per Capita Gross Domestic Product (U.S. dollars);  |                 |
| 2007 2/                                            |                 |
+----------------------------------------------------+-----------------+
| Unemployment Rate (October 2008) Statistics Canada | 6.2%            |
+----------------------------------------------------+-----------------+
| Per Capita Food Expenditures, 2007; (U.S. dollars) | \$1,444         |
| 3/                                                 |                 |
+----------------------------------------------------+-----------------+
| Total Employment / Full & Part Time; Nov. 2008 SC  | 18.3 million    |
| Labor Force Survey                                 |                 |
+----------------------------------------------------+-----------------+
| Exchange Rate, average annual 2007; Bank of Canada | C\$=US\$.9304   |
+----------------------------------------------------+-----------------+

Footnotes: 1/ AAFC; 2/ National Income and Expenditure Accounts,
quarterly estimates (StatCan) Cat. 13-001-XIB, Table 2 converted to
\$US; 3/ National Income and Expenditure Accounts, SC; Table 17

## Table B. Consumer Food & Edible Fishery Product Imports

<table>
<colgroup>
<col style="width: 18%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><strong>CANADA</strong></td>
</tr>
<tr class="even">
<td colspan="10"><strong>$US Millions (Cal. Year Data)</strong></td>
</tr>
<tr class="odd">
<td></td>
<td colspan="3"><strong>Imports from the World</strong></td>
<td colspan="3"><strong>Imports from the U.S.</strong></td>
<td colspan="3"><strong>U.S. Market Share</strong></td>
</tr>
<tr class="even">
<td></td>
<td><strong>2005</strong></td>
<td><strong>2006</strong></td>
<td><strong>2007</strong></td>
<td><strong>2005</strong></td>
<td><strong>2006</strong></td>
<td><strong>2007</strong></td>
<td><strong>2005</strong></td>
<td><strong>2006</strong></td>
<td><strong>2007</strong></td>
</tr>
<tr class="odd">
<td>Consumer-Oriented Agricultural</td>
<td>13.0</td>
<td>14.9</td>
<td>17.5</td>
<td>8.1</td>
<td>9.3</td>
<td>10.7</td>
<td>62%</td>
<td>62%</td>
<td>61%</td>
</tr>
<tr class="even">
<td>Fish &amp; Seafood</td>
<td>1.6</td>
<td>1.7</td>
<td>1.7</td>
<td>0.7</td>
<td>0.7</td>
<td>0.7</td>
<td>43%</td>
<td>41%</td>
<td>41%</td>
</tr>
<tr class="odd">
<td>Total Agricultural</td>
<td><p><mark></mark></p>
<p>17.7</p></td>
<td>19.9</td>
<td>23.6</td>
<td>10.6</td>
<td>12.0</td>
<td>14.0</td>
<td>60%</td>
<td>60%</td>
<td>59%</td>
</tr>
<tr class="even">
<td>Agricultural, Fish &amp; Forestry</td>
<td>22.0</td>
<td>24.3</td>
<td>27.8</td>
<td>13.4</td>
<td>14.8</td>
<td>17.0</td>
<td>61%</td>
<td>61%</td>
<td>61%</td>
</tr>
<tr class="odd">
<td colspan="10">Sources: Estimates Derived from AAFC,U.S. Bureau of
Census BICO &amp; World Trade Atlas</td>
</tr>
</tbody>
</table>

[]{.mark}

## Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products

CANADA -- Top 15 Supplier

  ------------------------------------------------------------------ ---------- ---------- ----------
  **Consumer-Oriented Agricultural Imports\***                                             

                                                                                           

  **US\$\'000**                                                      **2005**   **2006**   **2007**

  \-- The World \--                                                  13.0       14.9       17.5

  United States                                                      8.1        9.3        10.7

  Mexico                                                             0.4        0.5        0.6

  France                                                             0.3        0.4        0.5

  Italy                                                              0.3        0.3        0.4

  Australia                                                          0.3        0.3        0.3

  Chile                                                              0.3        0.3        0.3

  China                                                              0.2        0.3        0.3

  New Zealand                                                        0.3        0.3        0.3

  Brazil                                                             0.2        0.2        0.3

  Netherlands                                                        0.2        0.2        0.2

                                                                                           

                                                                                           

  **Fish & Seafood Product Imports\***                                                     

                                                                                           

  **US\$\'000**                                                      **2005**   **2006**   **2007**

  \-- The World \--                                                  1.7        1.7        1.7

  United States                                                      0.7        0.7        0.7

  China                                                              0.2        0.2        0.2

  Thailand                                                           0.2        0.2        0.2

  Vietnam                                                            0.1        0.1        0.1

  Chile                                                              0.0        0.1        0.1

                                                                                           

  \* based on selected HS codes and World Trade Atlas & StatsCan                           

  See Also: Annual Fish & Seafood Report                                                   
  [CA8071](http://www.fas.usda.gov/gainfiles/200810/146296093.pdf)                         
  ------------------------------------------------------------------ ---------- ---------- ----------