New Cheese Regulations Challenged in Federal Court

    OTTAWA, Oct. 20 /CNW Telbec/ - Regulatory changes to the Food and Drugs
Act and the Canadian Agricultural Products Act that come into effect on
December 14, 2008 will significantly change the way cheeses sold in Canada
must be made.
    Earlier today Kraft Canada Inc., Parmalat Canada Inc.and Saputo Inc.
(KPS) jointly filed an Application in the Federal Court of Canada challenging
these new regulations.
    "The regulations are bad for consumers, bad for cheese makers, bad for
dairy farmers and bad for Canada," said KPS spokesperson Yvan Loubier. "KPS is
challenging the new regulations to protect the integrity and future of
Canadian cheese."
    The regulations will require cheese makers to strictly limit the use of
natural constituents of milk, frequently referred to as modified milk, or
dairy ingredients.
    "The clear intent of these new regulations is additional revenue for
dairy farmers," explained Loubier. "Unfortunately any gains for dairy farmers
will likely be short-lived. The new regulations will hurt both cheese makers
and dairy farmers. They will increase the price of cheese to consumers, may
reduce cheese consumption and threaten the viability of Canada as a cheese
making nation. Canada's dairy processors are the unique market for the milk
produced by Canadian dairy farmers; the less cheese that is eaten by Canadian
consumers, the less milk that will be needed from Canadian dairy farmers."
    The government's own analysis of the impact of these regulations clearly
states that even though the regulations will not make cheese taste better or
improve its nutritional quality; the changes prescribed will likely see
Canadian consumers pay significantly more for the cheese they purchase at
their local grocery store.
    "The irony," says Loubier "is that the Canadian Food Inspection Agency
recognizes that it is impossible to determine if the finished cheese that
consumers buy in fact complies with the new regulations."
    The cheese makers also believe the new cheese regulations are in
contravention of Canada's international trade obligations and agreements.

For further information:

For further information: To arrange an interview with Yvan Loubier:
Contact: Gord Garner, (613) 797-5964,

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Kraft Canada Inc.

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