RAAWG Town Hall Meeting Materials May 14 2024

P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] PFAC RAAWG Agenda May 14, 2024 Sandman Hotel, Ottawa & virtually by MS Teams 3 – 4:30 pm Agenda items 1. Welcome & PFAC Anti-trust statement (Chris) Sub-group Reports (Sub-group leads) 1. Placeholder – once sub-groups are formed, reports will be quickly reviewed here Updates, Trends, CFIA and Other Gov Notices (Chris) 1. Terrestrial animal products and by-products: Returning shipments policy – Consultation 2. Ukraine – changes to export guide 3. Plastic Registry notice 4. China Updates a. China Agri-food Advocacy Office b. Recent meetings Member Submitted Items 1. Import changes for supplements (Janice Baker) (Angela Woo-Rey Hipolito) 2. Transiting through the US to and from Mexico (Laurie Ross) 3. China Facility Registrations (Joanne Liu) 4. Sampling Protocol changes – Composite Sampling (Joanne Liu) Other 1. Other business / issues a. Egg powder (Mary Ann Zamora Grepe) 2. CFIA presentation tomorrow a. Questions / Issues submitted PET FOOD ASSOCIATION OF CANADA COMPLIANCE POLICY: COMPETITION ACT It is the unqualified policy of the Pet Food Association of Canada to comply fully with the Competition Act (Canada). This policy prohibits any discussions that constitute or imply an agreement or understanding concerning the following or any other provision of The Competition Act: 1) Prices, discounts, or terms or conditions of sale; 2) Profits or profit margins or cost data; 3) Market shares, sales territories or markets; 4) Allocation of customers or territories; 5) Selection, rejection or termination of customers or suppliers; 6) Restricting the territory or markets in which a company may resell products; 7) restriction of the customers to whom a company may sell; or 8) any matter which is inconsistent with the proposition that each manufacturer, wholesaler and distributor must exercise its independent business judgment in pricing its services or products, dealing with its customers and suppliers and choosing markets in which it will compete. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] RAAWG Town Hall Agenda Items Details 1. Terrestrial animal products and by-products: Returning Shipments Policy CFIA_ACIA-#1691842 3-v5-APBP_ Returning • CFIA is giving us the opportunity to provide comments on this policy by end of May. • Basically saying that it will be a case by case assessment of the risk of the returning shipment but each one being returned must include an import permit application, a return application form, and any other info that clarifies the situation through MyCFIA • Comments are due by end of May, so if you have any concerns or suggestions for improvements, please let us know 2. Ukraine – Changes to Export Guide • A question was raised by a member that asked what the actual requirements were for exporting to Ukraine – does the facility need to be EU registered/certified or just the ingredients • CFIA responded with: We received confirmation from our embassy that the exporting establishment does not have to be listed in TRACES-NT to export to Ukraine. However, the establishment must meet Ukraine’s requirements that are a copy-paste of EU regulations. The pet food guideline will be updated in the future to include this information: The facility must be approved and registered for export to Ukraine ( Register of countries and facilities from which import (sending) of products into the customs territory of Ukraine ) or in the EU (TRACES NT). All supplying, processing and storing establishments must meet Ukrainian requirements that align to the EU requirements. However, the exporters don’t have to be listed in TRACES-NT. It is important for the exporters to understand that all the manufacturing chain (suppliers, producers, storing and shipping estab.) must meet Ukraine and/or EU requirements. 3. Plastics Registry Notice • Note was sent to members on April 23 for information • https://canadagazette.gc.ca/rp-pr/p1/2024/2024-04-20/html/notice-avis-eng.html#na1 • Under this notice, 'producers' (defined as brand owners) who produce or import plastic in the form of packaging are required to supply certain information. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] • Schedule 3 (2) mentions any producer of plastic products, listed in Schedule 1, Parts 3 & 4. Both rigid & Flexible food contact material I believe would apply for pet food. • If you look at the definition of producer, it includes a brand owner who resides in Canada. If you import pet food in flexible or rigid plastic packaging, then you would be responsible for reporting. If you buy packaging materials from a company in Canada, and make the pet food here, then the first company who supplies the plastic on the market would have to report (my understanding anyway). • Schedule 4 lists what you need to report, which is less for 2024 (1-6) which is mostly administrative info and part 8, which is the detail on plastics. For some of the information, your PRO can complete it I think, and you can delegate your reporting entirely to a 3rd party. • It seems that reporting for 2024, is due by September 29, 2025 and would include all information for 2024. This is in addition to provincial EPR reporting, and some of the information will likely be redundant. Much of the data will be challenging to get, not available, or not within the scope of the producer as it is defined - such as material handling after use. • If you have any questions, please let me know. This can also be discussed further at the RAAWG Town Hall meeting on May 14 - either in person as part of Dialogue, or virtual coordinates will also be sent. 4. China Updates • China Agri-Food Advocacy Office o The Canadian Meat Council (CMC) is creating an advocacy office in Beijing, and have asked if PFAC would join, and offer some support. Currently there are 3 members who have committed to voluntarily supporting the office. The Board is still deciding whether to also add some money to the pot. o The value is that the CEO who will run the office has been to China 4-5 times in the past 16 months, and have had several meetings with senior officials, where our government has not been able to get meetings • Recent CFIA and other meetings o March 27 – two senior CFIA staff met with their Chinese counterparts to discuss pet food issues at the technical level. They raised all the issues, which were acknowledged and they agreed to continue talking at future events – the WOAH meeting in May, and a symposium in Canada in the fall, and another technical discussion in the spring in Canada o I met with the Director General of AAFC and of GAC, and they raised the question of whether industry would support a formal WTO dispute. They and their lawyers feel that it would be a slam dunk case – China wouldn’t be able to refute anything, because of discriminatory treatment of Canada, and because they have no scientific justification for their restrictions, and not following WOAH international standards. This process could take a long time, and there is some element of risk to it. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] Member Submitted Items 1. Import Changes for Supplements An overview will be provided by a member, and any insight they have received on this policy change. Policy here: https://inspection.canada.ca/animal-health/terrestrial- animals/imports/eng/1300460421194/1300461242684 Another member will speak on additional questions regarding supplements that we need clarification on from the CFIA, including: • Seeking clarification of what products are subject to this policy vs. other policies, such as https://inspection.canada.ca/animal-health/terrestrial-animals/imports/import- policies/animal-products-and-by-products/framework/notice-to-industry-2019-10- 01/eng/1568640413681/1568640414212 • Clarity on whether the new supplements import policy includes vitamin pre-blends in bulk CFIA confirmed to Chris: These changes are for finished, retail-ready pet supplements that an owner would buy in the store and give to their pet. All premixes and ingredients added to pet food by a manufacturer will continue to use their current import requirements. 2. Transiting through the US to and from Mexico to Canada • This issue has been raised before, which seemed to surprise CFIA, and at a separate meeting the Mexico based trade commissioners • A member wanted to raise this again for discussion and to make CFIA aware • Goods that transiting between Canada and Mexico via the US in bond, on a sealed truck are treated by APHIS as though they are going into commerce. This means that companies must satisfy the requirements of all 3 countries, whether the goods are traveling north or south. • CFIA has negotiated certificates that make it simple for Canadian companies to import. However, it’s hard for companies to realize the benefit of CFIA’s work because USDA treats transiting goods as though they are going into commerce. Depending on a company’s location, it is costly to ship by other modes of transportation such as sea or air. • Typical mode of transportation is usually land when you are in the mid section of Canada. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] • US requires an import permit. o Some companies without a US presence would have difficulty obtaining a US import permit. o To get an import permit, the Mexico exporter needs an endorsed USDA BSE questionnaire. SADER will only issue changes to a BSE Questionnaire once per year which limits the ability of Canadian companies’ ability to add products. • Recently, CFIA announced that Mexico may be willing to take Canadian beef meat & bone meal. While this is good news for the beef industry, it could limit or add complication to Canadian imports of dry food from Mexico because US will not accept imported pet food made with Canadian beef meat & bone meal. • NOAA has restrictions on some fish products from Mexico (trade related, not health related). We are working with CBP to verify whether goods containing some fish would be permitted to transit through the US to Canada. 3. China Facility Registrations • A member wanted to raise this as a discussion, because as we know, facility registrations have stalled, and are not happening for new facilities, but also the 7 companies who are registered are expired • They are seeking an update on the issue from CFIA Issues where progress is stuck: • Facility inspections: GACC will not come to inspect the facilities, or will not allow/approve proxy inspections by CFIA. Facility inspections are needed in the registration process. • Facility approvals: GACC will not grant approvals/licences regardless of the success of the facility inspection. • Facility licence renewals: GACC is not renewing facility licences From CFIA: • CFIA have received requests from China for registering new facilities, and developing a bilateral agreement to do so, but at the same time will not resolve the current restrictions, so CFIA has said they need to tread carefully and don’t want to give China something without anything in return. • The discussions on restrictions are happening on multiple levels and in multiple tracks at the same time. • At the meetings that happened in March, facility registrations were raised, as was the idea for a ‘protocol’ but with no clarity on what that means P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] My assessment: The recent talks are a slow and small step forward, but should NOT be taken as a significant positive step that will resolve either of the two main issues 4. Sampling Protocol Changes https://inspection.canada.ca/animal-health/terrestrial-animals/exports/pet- food/preparing-export-certificates-for petfood/eng/1468423955222/1468424125724?chap=0#c6 From CFIA: • Industry defines lot for their own purposes. But if issue with lot, need to take action on the whole lot. It also needs to be clearly documented in your SOPs • This only applies to Salmonella and entero bacteria From Export Guide: Microbiological testing n = number of samples taken m = the threshold value for the number of bacteria; the results to be considered satisfactory if the number of bacteria in all samples does not exceed m M = maximum value for the number of bacteria; the result to be considered unsatisfactory if the number of bacteria in 1 or more samples taken is M or more c = number of samples the bacterial count which may be between m and M, the sample still be considered acceptable if the bacterial count of the other sample is m or less Example: Salmonella n=5, m=0, M=0, c=0 Enterobacteriaceae: n=5, m=10, M=300, c=2 For Salmonella: on each of the 5 samples, the result must be negative (absence of Salmonella). For Enterobactericeae: On 2 of the 5 samples, the result can be between 10 and 300; on the other 3 samples, the result must be 10 or less. Individual testing this condition requires that 5 random samples from the products to be exported must be tested for Salmonella and Enterobacteriaceae. The laboratory must test 1 gram of each sample for Enterobacteriaceae and 25 grams of each sample for Salmonella. This type of analysis should be used for exports to countries that do not have a clear requirement that all exported lots must be analyzed. In that situation, unless it is specified differently in the certificate, the entire shipment of finished products of the same processing method that will be exported even if the entire shipment is composed of different processing lots can be tested using that method. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] Composite testing when the importing country requires that each lot to be exported is tested, the company may combine the samples and do a single test for each bacterium. After a risk assessment, CFIA subject-matter experts have found that composite testing is equivalent to individual testing, which requires 5 samples per lot. In that situation, unless it is specified differently by the importing country, a single production run, at a single facility, using the same ingredients and processing method over a period not exceeding 24 hours can be tested using that method. • A member has raised an opportunity for advancing an alternative approach to composite sampling. Their thoughts are: o The current Composite Sampling Guideline for Enterobacteriaceae testing stipulates 1g per lot, or 5 per composite sample. On recommendation from an accredited lab, we are proposing 10 g per lot, or 50 g per composite sample. Health Canada’s own “Supplement to All Methods in the Compendium” (double click: Adobe Acrobat Document ) prescribes a minimum of 10 g of sample for testing and 1 gram would be extremely small. Some labs do not offer 1 gram testing as it is too small a sample. By having 10 g, it would provide wider coverage and would be more representative of the lot than 1 g of sample per lot. o The current Composite Sampling Guideline for Enterobacteriaceae: if the test results for the combined sample (5 grams) show more than 6 cfu/g, the sampled lot cannot be exported. However, the Enterobacteriaceae test method requires a minimum 1:10 dilution, which yields a 10 cfu/g detection limit. In order to get a 6 cfu/g count, the method needs to be adjusted to a 1:5 dilution, which is against the MFLP-09 method. Therefore 6 cfu/g is not technically valid with the test method. Therefore, we would like to propose 20 cfu/g, which is also the standard adopted by APHIS USDA for pet food export shipments to EU from USA. CFIA Dialogue Presentation 1. Questions / Issues Submitted a. I will share the above issues and questions with CFIA in a form that retains anonymity, and removes anything except questions for clarity