Your Responsibilities and Obligations

Once you have completed all the basic steps involved in starting your own business, you're ready to look at specific considerations relating to the food processing industry.

As a food processor, you have specific obligations and responsibilities that are governed by federal and provincial acts, statutes and regulations. You need to be aware of these, to ensure that you are operating a safe and legally compliant business.

Equally as important, you must be certain that you are properly insured. When you're starting a business, you can't afford to be under-insured. Even small disasters have the potential to destroy a new business. And personal assets such as your house or car could be seized if you don't have proper insurance in place.

Liability and Insurance

Many types of insurance are available. Your best bet is to consult with an experienced insurance agent or broker, who can advise you about the coverage you need. When you're looking for an agent, speak with other food processors, friends and associates for suggestions about who to use.

There is a section on risk management for small businesses at the Insurance Bureau of Canada website.

You can also find names in the Yellow Pages. It's always useful to get more than one quote.

You may need to purchase individual policies for each type of protection. However, your insurance agent might be able to find a package that's geared to your particular business.

Product Liability Insurance

As well as general insurance, as a food processor you should be covered for product liability and completed operations liability. This will give you protection against claims by customers who have incurred damages or become ill through eating your food product.

Much of the regulation aimed at protecting consumers is designed to reduce the risk that they will eat a spoiled or tainted product. But food-borne illness is a continuing concern.

A single lawsuit in this area can bankrupt even the biggest company. Personal assets such as a house or car can also be seized.

Store owners may require you to provide assurances that your product is properly insured, because they can also bear some liability for selling the product.


top of page

General Obligations and Responsibilities

Food safety is the responsibility of everyone along the chain, from farm producers to those supplying inputs to them to consumers.

Health Canada

The Food Program is administered by Health Canada's Health Protection Branch. Its main task is to assess and control the nutritional value, quality and safety of food under the authority of the Food and Drugs Act. The branch's activities include nutritional assessments of food, nutritional labelling and the regulation of novel foods derived from biotechnology.

The branch also carries out surveillance and risk-assessment activities to prevent and control diseases of national and international concern, including food-borne diseases.

Food Safety

You have specific obligations to:

• your employees;
• the suppliers of raw products, ingredients and other materials and services;
• the distributors and retailers of your products;
• the consumers of your products; and
• the community in which you operate.

Consumers expect food to be safe. And they expect to be protected from unfair or fraudulent business practices. It's your responsibility to ensure the safety of your products and the proper representation of its quality and quantity. The government's role is to ensure that these obligations are met.

At the manufacturing plant level, food safety begins at the receiving dock and continues beyond the shipping dock. It includes such considerations as:

• the location and design of the plant;
• the safety, proper handling and storage of raw materials, ingredients, packaging materials
  and manufactured goods;
• proper handling, storage and disposal of waste products;
• proper installation, maintenance and use of equipment;
• proper training of your employees;
• programs or systems for such concerns as pest control, product formulation and recalls;
  proper packaging and labelling of products; and
• adequate information for your customers regarding handling, storage and preparation
  of foods.

You will find more details about the above in Part 3: "Developing and Manufacturing Your Products," and Part 6: "Quality Assurance."


top of page

Allergen Control

A variety of foods contain ingredients or substances that can cause adverse or allergic reactions in sensitive people. You need to ensure that prepackaged food is labelled in compliance with the federal Food and Drug Regulations. Most prepackaged food must have a complete and accurate listing of ingredients. If allergens aren't labelled correctly, or if there is inadvertent contamination of a food with these products, the results can be serious.

For information on food allergies and your responsibilities as a processor, go to the Canadian Food Inspection Agency (CFIA) website.

You'll find more information about labelling in Part 7: "Packaging and Labelling." The CFIA website also contains information about labelling.

HACCP

Increasingly, buyers are requiring suppliers of raw products, ingredients and manufactured food products to use a documented process control system that maximizes safety. One such system is the Hazard Analysis Critical Control Point (HACCP) system. This is a method of analyzing the food processing to identify potential hazards to food safety. Once they have been identified, critical limits are set at each point during the processing.

The Ontario Ministry of Agriculture, Food and Rural Affair's HACCP Advantage Program was developed as part of the HACCP approach, and is designed to be feasible and practical for any food processing facility, regardless of its size, the commodity produced or the volume processed.

The HACCP Advantage Program consists of 57 prerequisite program standards and eight HACCP plan forms. The prerequisite programs are designed to control environmental-and personnel- related hazards, while the HACCP plan accounts for product-and process-related hazards.

When you implement all the prerequisite program standards and complete and implement the required HACCP plan forms, you can create a functioning HACCP system. Much of the program may already be present in your business, with the only requirement being proper documentation.

The HACCP Advantage Program manual presents the prerequisite program standards and the HACCP plan forms in a user-friendly format. For more information about the HACCP Advantage Program or to get a copy of the manual, call 1-866-641-3663 or e-mail advantage@ontario.ca.

Product Returns and Recalls

You can minimize product returns by ensuring that the quality is maintained once the
product leaves the plant. Many companies:

• use packaging designed to protect and prevent contamination of the product;
• ensure that everyone handling the product is aware of all storage and
  transportation procedures;
• develop clear inventory control procedures;
• use a printed or embossed code marking on the package to identify the date
  produced and even the exact production machine or production run; and
• use systems designed to indicate whether temperature abuse has occurred
  during distribution.

Product Returns

Occasionally, customers will want to return a product because they feel something is wrong with it. As a gesture of goodwill and a way of maintaining and strengthening customer relations, you might want to accept the returned product and issue a credit note or a refund.

Investigating and keeping records of complaints is useful. Investigations may reveal problems in production or distribution systems that you need to correct. Records may indicate that a continuing complaint by a customer isn't related to a defective product or deficiencies in your distribution system, but to home or institutional preparation problems or other customer-related problems.

For example, if the local football association is always returning hot dogs when games are rained out, it may be due to their own poor planning, not bad hot dogs. If this is what the complaint records show, then you may want to look at other ways of dealing with the football association.

Product Recall or Removal

If one of your products is found to be unsafe or is implicated in a food-borne illness outbreak, regulatory agencies will request that you withdraw or recall the product from the marketplace.

If you refuse, or there is an imminent threat to public safety, the Canadian Food Inspection Agency or municipal health units may exercise their powers to recall or remove the product from sale.

You need to be continually vigilant to avoid product recalls. To minimize the impact of a food recall, have a process control system that provides readily accessible and accurate documentation as well as an efficient and effective emergency recall plan.

Food and Consumer Products of Canada publishes a number of guidelines and publications, including a Product Recall Manual. Contact:

Food and Consumer Products of Canada
885 Don Mills Road, Suite 301
Toronto, Ontario M3C 1V9
Tel: 416-510-8024
Fax: 416-510-8043
E-mail: info@fcpc.ca

top of page

Regulatory Responsibilities and Obligations

The information that follows is only a partial guide to the regulations that apply to the food processing industry. It's your responsibility to contact the applicable regulatory agencies for detailed information.

Some of the responsibilities and obligations you have to your suppliers, employees, customers and communities are specified in agricultural, business, contract, food, environmental, labour, trade or criminal law.

In Ontario, federal, provincial and municipal governments have enacted laws governing the food industry and food processors. You need to be aware of the applicable laws, as well as any changes that occur in these laws over time.

Get as much information as possible to determine the requirements
of the applicable legislation, regulations and bylaws, particularly before:

• building a new plant;
• buying an existing plant;
• starting operations;
• expanding or modifying your operation;
• introducing new products; or
• expanding into new markets.

One main function of regulatory agencies is to conduct inspections to ensure compliance. The frequency with which these routine inspections are carried out is generally determined by the degree of risk posed by a product.

For example, meat is a relatively high-risk product. The slaughter of animals for meat for human consumption has to be done in the presence of an inspector. The inspector will examine all animals before they are slaughtered and all carcasses afterwards.

If your facility produces lower-risk products, inspectors might visit less frequently. If your product is intended for export markets, the inspection frequency will be determined by requirements imposed by your trading partners.

If, during the course of a routine inspection, a product or the premises are found not to be in compliance, you will have to take corrective action.

Product and other requirements may vary from country to country, province to province and state to state. Requirements for food processing premises, as well as restrictions on them, may also vary from municipality to municipality.

Harmonized Inspection Standards

In Canada, the federal, provincial, territorial and municipal governments recognize the need to harmonize food safety standards nationally. The Canadian Food Inspection System Implementation Group is developing a new system of food safety inspection standards, which will be applied nationally. These may reduce the regulatory burden on processors and make international and interprovincial trade easier.

You can check the progress of this initiative at the Canadian Food Inspection System website..

Legislative Renewal

The federal government and many jurisdictions also recognize the need to modernize and consolidate existing food safety legislation. Both Health Canada and the Canadian Food Inspection Agency have launched legislative renewal initiatives. Ministries with food safety responsibilities in Ontario have joined with municipal representatives to identify improvements needed in Ontario's food safety system.

Supply Management at the National Level

National supply management plans were introduced under the Canadian Dairy Commission Act and the Farm Products Marketing Agencies Act.

The Canadian Dairy Commission oversees the administration of the National Milk Marketing Plan and reports to the Minister of Agriculture and Agri-Food in Canada. The plan covers all processed dairy products, with the exclusion of fluid milks (which are administered by the provinces).

The commission oversees national supply management quotas for industrial milk. It also provides quotas for the development of products that are new to the Canadian market.

If you are planning to use dairy ingredients in your finished product, you need to contact the Commission. It administers a system of "special classes" that sets raw milk prices used to make milk ingredients for finished products. Contact:

Canadian Dairy Commission
Building 55, NCC Driveway
Central Experimental Farm
960 Carling Avenue
Ottawa, Ontario K1A 0Z2
Tel: 613-792-2000 (main)
Fax: 613-792-2009
E-mail: cdc-ccl@agr.gc.ca

The National Farm Products Council is a federal body that oversees certain national supply management agencies. Supplies of chicken, turkey, eggs and broiler hatching eggs are controlled
so that Canada's needs are met effectively. Contact:

National Farm Products Council
Canada Building
344 Slater Street, 10th Floor
Ottawa, Ontario K1R 7Y3
Tel: 613-995-6752
Fax: 613-995-2097
E-mail: nfpcweb@agr.gc.ca

A list of national marketing agencies is available on the Ministry of Agriculture, Food and Rural Affairs website.

Imports

You can import products from other countries for processing or further processing as long as you comply with certain conditions imposed by federal or provincial legislation. Some products can only be imported under a federal import permit issued by International Trade Canada.

Certain products are subject to tariff rate quotas. These are described on the International Trade Canada website.

If you would like to learn more about import requirements, contact:

• a customs broker or freight forwarder;
• the local Revenue Canada-Customs office; or
• the local Canadian Food Inspection Agency office.

Federal Statutes and Regulations

You need to familiarize yourself with a number of federal statues and regulations, administered by several agencies.

Canadian Food Inspection Agency (CFIA)

All federally mandated food inspection and quarantine services are consolidated in a single federal food inspection agency-the CFIA.

Acts and regulations that the CFIA administers or enforces include the following:

• Agriculture and Agri-Food Administrative Monetary Penalties Act;
• Canada Agricultural Products Act;
• Canadian Food Inspection Agency Act;
• Consumer Packaging and Labelling Act;
• Orders made under the Financial Administration Act;
• Fish Inspection Act;
• Food and Drugs Act;
• Health of Animals Act;
• Meat Inspection Act; and
• Plant Protection Act.

The CFIA maintains an excellent website at that provides explanations of the programs and services it offers to industry, access and regulations, and a directory of staff and offices. This website contains a wealth of information available to industry and consumers. It includes newsletters, fact sheets, guidelines, manuals and databases covering a wide range of topics such as allergens, labelling, food safety and codes of practice. Be sure to check out the CFIA's Guide to Food Labelling and Advertising, which is available on the website and can be downloaded as a PDF file.

You can contact the CFIA at:

Head Office
Canadian Food Inspection Agency
59 Camelot Drive
Ottawa, Ontario K1A 0Y9
Tel: 613-225-2342
Fax: 613-228-6601

Ontario Area Office
Canadian Food Inspection Agency
174 Stone Road West
Guelph, Ontario N1G 4S9
Tel: 519-837-9400
Fax: 519-837-9783

Measurement Canada

Measurement Canada is a special operating agency of Industry Canada that administers and enforces two statutes dealing with measuring devices-the Electricity and Gas Inspection Act and the Weights and Measures Act.

Under the Weights and Measures Act, the agency evaluates and approves all measuring devices (scales and meters) used in trade. You must ensure that all approved devices are inspected before you use them, and that you have them inspected regularly. Measurement Canada has an inspection program. However, you are legally responsible for the accuracy of your devices.

Measurement Canada also inspects goods and services that you trade on the basis of measure, to ensure that they are accurately measured.

top of page

Provincial Statutes and Regulations

As a food processor, you must familiarize yourself with a number of provincial statutes and regulations. The Economic Development Division has useful website links for gaining information about food labelling regulations in Canada and the United States, as well as proposed changes to current government regulations. Note that the selected links below are to external websites, and are intended for information only. A good reference source is the food page of the Ministry of Agriculture, Food and Rural Affairs website at www.omafra.gov.on.ca.

You can also get copies of the various acts through government information centres in Toronto and Ottawa, as well as a number of third-party outlets throughout Ontario.

Ontario Government Bookstore
880 Bay Street, 5th Floor
Toronto, Ontario M7A 1N8
Tel: 416-326-5300
Toll Free: 1-800-668-9938
Fax: 416-326-5317
By mail: Publications Ontario
50 Grosvenor Street
Toronto, Ontario M7A 1N8

Access Ontario
Ottawa Court House
161 Elgin Street, Level 2
Ottawa, Ontario K2P 2K1
Tel: 613-238-3630
Toll Free: 1-800-268-8758
Fax: 613-566-2234

A list of private distributors is available at www.publications.gov.on.ca/english/shopsite.

The acts are administered or enforced by a number of agencies, including the following.

The Ministry of Agriculture, Food and Rural Affairs administers or enforces the following statutes:

• Dead Animal Disposal Act: regulates renderers and the disposal of dead animals;
• Farm Products Grades and Sales Act: establishes requirements for fruit and vegetable, honey and maple products and grade marking requirements for beef;
• Livestock and Livestock Products Act: establishes requirements for eggs and
  processed eggs;
• Milk Act: establishes requirements for dairy processors and dairy products; and
• Meat Inspection Act: establishes requirements for abattoirs and processing in abattoirs.

Regulations under the Food Safety and Quality Act, 2001 will harmonize Ontario's
standards for food safety with national standards where appropriate. The legislation will
serve as a strong complement to the Ministry of Health and Long Term Care's Health
Protection and Promotion Act.

For more information, contact:

Food Inspection Branch
1 Stone Road West, 5th Floor NW
Guelph, Ontario N1G 4Y2
Tel: 519-826-4230
Toll Free: 1-888-466-2372
Fax: 519-826-4375

Note that if you are a processor of dairy products, edible oil products or eggs, you must be licensed under provincial legislation. Abattoir operators who aren't federally registered also need a license. Contact the Food Inspection Branch for details.

The Ontario Farm Products Marketing Commission administers the following acts:

• Farm Products Marketing Act; and
• Milk Act.

If you are a processor of apples, asparagus, grapes, potatoes, tender fruit or vegetables, you need to be licensed under the Farm Products Marketing Act.

For more information, contact:

Ontario Farm Products Marketing Commission
1 Stone Road West, 5th Floor SW
Guelph, Ontario N1G 4Y2
Tel: 519-826-4220
Toll Free: 1-888-466-2372
Fax: 519-826-3400

A useful resource about regulations governing dairy processing in Ontario is the
Dairy Farmers of Ontario-Online Services website.

top of page

Marketing plans have been established under the Milk Act and the Farm Products Marketing Act. These plans are administered by various producer marketing boards.

The plans vary by commodity, and each board has been granted different authorities. See the Ministry of Agriculture, Food and Rural Affairs website at www.omafra.gov.on.ca for a list of marketing boards and agencies.

Ontario Ministry of Consumer and Business Services

The Alcohol and Gaming Commission of Ontario has jurisdiction over the following acts:

• Liquor Licence Act; and
• Wine Content Act.

For more information, contact:

Alcohol and Gaming Commission of Ontario
Atrium on Bay
20 Dundas Street West
Toronto, Ontario M5G 2N5
Tel: 416-326-8700
Toll Free: 1-800-522-2876

Ontario Ministry of the Environment

The Ministry of the Environment is responsible for the Environment Protection Act. For more information, contact:

Ministry of the Environment
135 St. Clair Avenue West, Main Floor
Toronto, Ontario M4V 1P5
Tel: 416-325-4000
Toll Free: 1-800-565-4923
Fax: 416-325-3159

Ontario Ministry of Health and Long Term Care

The Public Health Branch is responsible for the Health Protection and Promotion Act.

For more information, contact:

Ministry of Health and Long Term Care
Suite M1-57, Macdonald Block
900 Bay Street
Toronto, Ontario M7A 1N3
Tel: 416-314-5518
Toll Free: 1-800-268-1154
Fax: 416-314-8721

Local Public Health Units are official municipal health agencies established to deliver community health programs. Among their duties, the Medical Officer of Health and the inspection staff of each unit are responsible for inspecting all food premises, including restaurants and retail outlets, within their units. They also investigate and control food-borne illness outbreaks.

You can find Food Premises Regulation 562 under the Health Protection and Promotion Act.

For your municipal health agency location go to: Municipal Public Health Unit Locations (Ontario)

Bills before the Legislature

The Ministry of the Attorney General website provides the status of bills before the legislature, as well as electronic versions of statutes and regulations. Go to:

• www.attorneygeneral.jus.gov.on.ca ; or
• www.ontla.on.ca.
  

top of page

Municipal Regulations

Local municipalities are responsible for enforcing the Ontario Building Code. Your municipality may have bylaws that control the location of food processing operations, water and energy usage and waste disposal. Check with your local municipal office for more information.

U.S. Regulations

You must comply with specific regulations when your products are destined for the United States.

United States Food and Drug Administration

The United States Food and Drug Administration (FDA) is generally responsible for all food products entering the United States except meat and poultry.

If you intend to manufacture products destined for U.S. markets, you must comply with all applicable U.S. laws, particularly the:

• Federal Food, Drug and Cosmetic Act;
• Fair Packaging and Labeling Act; and
• Nutrition Labeling and Education Act of 1990.

Note that you must register with the FDA if your business includes low-acid canned food and acidified food processing and you ship products to the United States.

The FDA maintains a web page at for international importers to the United States, which includes frequently asked questions. The web page also includes a source of international regulatory resources, as well as a listing of FDA District Office Import Program Managers.

For more information, contact:

The Food and Drug Administration (FDA)
Center for Food Safety and Applied Nutrition
Industry Activities Staff (HFS-565)
5100 Paint Branch Parkway
College Park, Maryland 20740-3835
Tel: 301-436-2600

United States Department of Agriculture

The Food Safety and Inspection Service (FSIS) is the public health agency in the U.S. Department of Agriculture that's responsible for ensuring that imported meat, poultry and egg products are safe, wholesome and correctly labelled and packaged. These requirements come under the following acts:

• Federal Meat Inspection Act;
• Poultry Products Inspection Act; and
• Egg Products Inspection Act.
  
  

Information for exporters to the United States can be found at the FSIS website.

top of page

Return to Contents