An American warning that proposed new regulations governing distillers grain could inhibit cross border trade isn’t sitting well with Canadian beef producers.
The National Grain and Feed Association, which is the largest trade association representing U.S. commercial feed interests, says the Canadian Food Inspection Agency’s draft policy exceeds what’s necessary to ensure the safe production and use of the product and is not in harmony with U.S. regulations.
That is a concern for an industry that shipped 317,000 tonnes of distillers grain to Canada last year.
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“It is a major export market for U.S. producers,” said David Fairfield, the association’s director of feed services.
The group is urging the CFIA to make several significant changes to its draft policy. Chief among them is for the agency to officially recognize the fermentation micro-organisms, enzymes and processing aids used in the production of distillers grain that are already approved by the U.S. Food and Drug Administration.
The CFIA has proposed that such substances be subjected to review and approval by a Canadian government body such as itself, Environment Canada or Health Canada. That would mean U.S. ethanol plants would have to change their manufacturing processes or stop selling the byproduct to Canada until the substances were approved.
“I can’t quantify the cost of that but it would be a hindrance, so it certainly doesn’t facilitate trade,” Fairfield said.
The association also questions the need for labels with maximum sulfur, moisture, sodium and phosphorus guarantees when similar labels aren’t required for other feed ingredients. For example, canola meal typically has similar or greater sulfur content than distillers grain but it is not subject to a mandatory maximum sulfur guarantee.
“The CFIA policy would obligate U.S. firms that export distillers grains products to Canada to take additional actions to label products with required guarantees, thereby increasing the cost of doing business and making cross border trade more difficult,” the association said in a news release.
Ryder Lee, manager of federal-provincial relations with the Canadian Cattlemen’s Association, said his group has expressed similar concerns.
He agreed that regulatory action in Canada that goes beyond what is in place in the United States could hinder cross border trade of a valuable alternative feed ingredient.
“It would be a real competitive disadvantage for Canadian beef producers,” Lee said.
Both groups have raised their objections in written submissions to the CFIA and will have a chance to reinforce their positions in a public meeting May 30 in which stakeholders will be asked to provide more feedback on the policy.
They are not the only groups that are concerned.
“I know the cattle feeders are concerned about it, and I think the feed manufacturing industry as well,” Lee said.
Brad Wildeman, president of Poundmaker Agventures Ltd., a small ethanol plant in Lanigan, Sask., said the new regulations are too onerous and will add unnecessary costs to the production and sale of distillers grain, which is a valuable byproduct for ethanol plants.
The CFIA says the new feed ingredient needs to be regulated because some of the products used in the production of distillers grain could harm animals and the humans who eat the resulting meat, milk and eggs.
However, Fairfield is optimistic the agency will be amenable to changing the draft policy to better suit the needs of the ethanol, feed and livestock industries.