Vol. 143, No. 4 — February 18, 2009

Registration

SOR/2009-19 January 29, 2009

CANADIAN DAIRY COMMISSION ACT

Regulations Amending the Dairy Products Marketing Regulations

P.C. 2009-119 January 29, 2009

Her Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to section 12 of the Canadian Dairy Commission Act (see footnote a), hereby makes the annexed Regulations Amending the Dairy Products Marketing Regulations.

REGULATIONS AMENDING THE DAIRY PRODUCTS MARKETING REGULATIONS

AMENDMENT

1. Section 7 of the Dairy Products Marketing Regulations (see footnote 1) is amended by adding the following after subsection (3):

(4) Subsection (3) applies to a dairy product that is, or is made from, milk or cream that is produced in Canada.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

Section 7 of the Dairy Products Marketing Regulations is being amended to remove an unintended prohibition on the marketing of imported dairy products in interprovincial or export trade.

Description and rationale

Section 12 of the Canadian Dairy Commission Act provides that the Governor in Council may make regulations regulating the marketing of dairy products, including providing for the licensing of producers or processors, and prohibiting persons from marketing any dairy product except under authority of a licence.

The Dairy Products Marketing Regulations were made in 1994. They provide for the issuing of federal licences to dairy producers. Subsection 7(3) prohibits the marketing in interprovincial or export trade of a dairy product unless it is, or is made from, milk or cream produced by a person with a federal licence. Subsection 7(1) provides that the Commission shall cause a federal licence to be issued only to a person to whom federal quota has been allotted; who is registered as a milk producer with, or is licensed as a cream producer by, the Manitoba Milk Producers; or who is licensed under the Milk Act of Ontario.

The intent of subsection 7(3) was to prevent the marketing in interprovincial or export trade of dairy products made from milk produced in Canada by a person without milk quota (i.e., who does not hold a federal licence). However, it has more recently been recognized that this subsection applies to all dairy products, including imports. Strictly speaking, it has the unintended effect of preventing the marketing of imported dairy products in interprovincial or export trade, since these products are not made from milk produced by producers who hold a federal licence.

An amendment is needed to correct the anomaly. A new subsection 7(4) will provide that subsection 7(3) applies only to a dairy product that is, or is made from, milk or cream that is produced in Canada. Subsection 7(3) will not apply to imported dairy products.

Subsection 7(3) has never been enforced with respect to imports, so the amendment will restrict its scope to align it with current practice. There will be no impact on imports of dairy products, which are, and will continue to be, marketed in interprovincial or export trade. Domestic dairy products will continue to be subject to subsection 7(3). The amendment is therefore a non-substantive change, and is a legal housekeeping change to correct an oversight.

Alternatives

The status quo is an alternative, but because the scope of subsection 7(3) is too broad, a technical amendment is preferred to put current practice into regulation. This amendment will clarify the application of the Regulations to domestic dairy products.

Consultation

The Canadian Dairy Commission agrees with the proposed amendment. The Dairy Farmers of Canada, Dairy Processors Association of Canada, and International Cheese Council of Canada have been informed of the technical correction and also agree with it.

Implementation, enforcement and service standards

The amendment of section 7 is a technical correction that will have no impact on the marketing of domestic or imported dairy products in interprovincial or export trade. There are no expected costs or savings.

Contact

Eric Johannsen
Strategic Policy Branch
Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Avenue, Room 621
Ottawa, Ontario
K1A 0C5
Fax: 613-759-7239
Email: johaner@agr.gc.ca

Footnote a
R.S., c. C-15

Footnote 1
SOR/94-466