Canadian Food Safety and Quality Program:
Food Safety Initiative
Traceability Program Q & A's

Traceability Grant Program and Traceability Pilot Project
Questions and Answers

General

Q1. What is the Food Safety Initiative?
A1.
The Food Safety Initiative (FSI) is one element of the Canadian Food Safety and Quality Program with the objective of promoting and enhancing food safety in the agri-food sector. Under the Food Safety Initiative in Ontario, funding will be provided for a Traceability Grant Program and for Traceability Pilot Projects for small and medium sized facilities (less than 100 employees) throughout the agri-food chain.

Traceability Grant Program:
Direct grants will be available to assist eligible applicants to implement a facility level traceability system. OMAFRA will reimburse 75% of an applicant's eligible costs (incurred after January 15, 2007), up to a maximum of $20,000 per facility. Payments will be made based on proof of facility level traceability system implementation as outlined in Schedule B of the Guidelines. Funds for the Traceability Grant Program will be allocated on a first come, first served basis. Funds are limited to $2 million; it is recommended that you apply well in advance of the application deadline.

Application deadline for the Traceability Grant Program: Monday, April 30, 2007.

Traceability Pilot Project:
Approximately twenty (20) pilot sites will be selected to work with OMAFRA on projects to develop and implement a facility level traceability system. Facilities selected as pilot sites will be automatically enrolled into the Traceability Grant Program, as well as benefit from having a consultant work with them directly to develop and implement a facility level traceability system. OMAFRA will cover the fees associated with the consultant.

Application deadline for the Traceability Pilot Project: Friday, March 16, 2007.

The Traceability Grant Program and Traceability Pilot Project application form will be available on February 12, 2007.

Program Eligibility (both Grant and Pilot)

Q2. Who is eligible for the Traceability Pilot Project and Traceability Grant Program?
A2.
To apply, an Applicant must meet all of the following criteria:

• be an Ontario grower, primary producer, processor, distributor, transporter, supplier of inputs to production, or primary packaging manufacturer of food or drink for human consumption (e.g. farm, livestock carrier, grain elevator, auction barn, fairs, processing facility, rendering facility, source of soil amendments);
• be a small or medium sized facility;
• have a valid Revenue Canada Business Number (GST Number);
• licensed to operate in Ontario if required. (e.g. meat, poultry and dairy).
• notwithstanding the first four bullets of section 2.0, processors of pet food, fish or shellfish are not eligible to apply.
• an applicant must remain in compliance with traceability national/provincial program standards where they exist when implementing this program (e.g. cattle, sheep). Only equipment that has been tested and approved for use in Canada will be considered as an eligible cost under this program.

Q3. What is a primary packaging manufacturer?
A3.
Manufacturers who produce packaging material that comes into direct contact with food.

Q4. What is a small or medium sized facility?
A4.
For purposes of the Traceability Grant Program and the Traceability Pilot Project, a small or medium sized facility is defined as a facility having less than one hundred employees, counting both full and part time personnel.

Q5. I am a federally registered facility, am I still eligible to participate in either the grant program or to apply as a pilot site?
A5.
Yes. Both federally registered and non-federally registered facilities are eligible. Pet food, fish and shellfish facilities, however, are not eligible.

Q6. How do I apply for funds?
A6.
There is one application form for both the Traceability Grant Program and the Traceability Pilot Project. These are available from the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) toll-free at 1-866-641-3663; e-mail: FSI.omafra@ontario.ca or by visiting the OMAFRA website.

Q7. How will funds be made available?
A7.
Funding for the grant program will be available on a cost-shared basis. OMAFRA will cover 75% of eligible costs up to a maximum of $20,000 per facility. See Section 3.5 of the Guidelines for more details.

Q8. I have more that one facility (different locations), can I apply for a grant for each facility?
A8.
Yes, applicants can apply to the traceability grant program once per facility.

Q9. How much funding is available for the Traceability Pilot Project and Traceability Grant
Program?
A9.
Funding for the Traceability Pilot Project is limited to allow for 20 pilot projects. Traceability Grant Program is a first come, first served program. Traceability Grant Program funds are limited to $2 million; maximum of $20,000 per application. It is recommended that you apply well in advance of the application deadline of April 30, 2007.

Deadlines:

Q10. What are the deadlines for applying?
A10.
For Traceability Pilot Project, applications are due no later than Friday March 16, 2007.
For Traceability Grant Program, applications are due no later than Monday April 30, 2007.
OMAFRA reserves the right to extend these deadlines.

Q11. Where do I send my completed application form?
A11.
Please submit your completed application form by fax to 1-519-826-4466
or by mail to:
Food Safety Initiative - Traceability
Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
1 Stone Road West, Guelph, ON N1G 4Y2

Traceability Grant Program:

Q12. What costs are eligible under the Traceability Grant Program?
A12.
Eligible costs under the Traceability Grant Program are:

• consultant fees for development and implementation of the facility level traceability system;
• staff costs directly related to development of the facility level traceability system (e.g., wages for traceability coordinator during development and implementation);
• materials and supplies for traceability plans and/or manuals;
• labour costs directly associated with the implementation of the facility level traceability system;
• equipment purchases and software costs required for the implementation of the facility
  level traceability system;
• infrastructure changes, as strictly required for the implementation of the facility level
  traceability system; and,
• related staff training costs.

Q13. What types of costs are considered ineligible for the Traceability Grant Program?
A13.
Ineligible costs include:

• federal and provincial taxes, including the non-refundable portion of GST;
• costs being reimbursed under an existing government program;
• costs for purchase/rental/lease of facilities related to the facility level traceability system;
• product identifiers (e.g. ear tags); and,
• any other expense, which at the discretion of OMAFRA, is deemed to be ineligible.

Q14. I have already implemented a traceability system, are the costs I incurred eligible under the Traceability Grant Program?
A14.
Only expenses incurred after January 15, 2007 will be eligible for cost-sharing under the Traceability Grant Program.

Traceability Pilot Project:

Q15. If I apply for the Traceability Pilot Project, can I still receive funding under the Traceability Grant Program?
A15.
Yes. If you are successful in your pilot application, you will automatically be enrolled in the Traceability Grant Program. If you are not successful in your pilot application, your application will be considered for a the Traceability Grant Program.

Q16. I have already implemented a traceability system, am I still eligible to be a traceability pilot?
A16.
No. Pilot projects are aimed at facilities in the process of developing and implementing a traceability system.

Q17. I only want to develop a business case for a traceability system, is there an opportunity for me to still be a traceability site?
A17.
No. The pilot projects are aimed at facilities looking to not only develop a system, but also for implementation.

Q18. If I am a successful candidate for the Traceability Pilot Project, when will I be notified?
A18.
Once your application is received, it will be processed as quickly as possible. When an application is submitted to OMAFRA, both the application and the Letter of Management Commitment will be reviewed to determine eligibility for the Traceability Pilot Project. Applicants deemed to be suitable candidates as a pilot site will be contacted by phone. A follow up on-site interview to further assess the facility's suitability will be arranged at the request of the Program Administrator.

Q19. Who does the on-site assessment and interview?
A19.
OMAFRA staff will review the application forms and conduct the on-site assessment and interview to further assess a facility's suitability as a pilot site.

Q20. When will the Traceability Pilot Project start?
A20.
We anticipate a start date of May 2007.

Q21. Are there specific plants that you are targeting to participate in the Traceability Pilot Project?
A21.
When selecting pilot sites, OMAFRA will ensure that a cross-section of facilities representing Ontario's commodity sectors from farm to fork is being represented.

Q22. What are the selection criteria for the Traceability Pilot Project?
A22.
The selection of a facility as a pilot site will be based on pre-established criteria. The selection criteria are the following:

• demonstrated management commitment to the implementation of a facility level traceability system;
• the facility's ability to successfully meet the Traceability Pilot Project's objectives;
• outcome and completeness of Part D of the application form: Proposed Traceability Work Plan and Budget;
• complexity and number of products/processes at the facility; and,
• commodity sector - OMAFRA will ensure that a cross-section of facilities representing commodity sectors from farm to fork is being represented;
• OMAFRA may require additional information which may be used to evaluate facilities for
  selection.

Q23. What are the obligations of a facility chosen as a pilot site?
A23.
Participating facility obligations are described in the Guidelines (Section 4.4). For more information please call our customer service representative at 1-866-641-3663 or e-mail: FSI@omafra.gov.on.ca or by visiting the OMAFRA website.

Q24. My facility is quite old but I want to be a pilot site. What about renovations?
A24.
If your application is successful, you will be eligible for a grant of up to $20,000 to cover 75% of eligible costs (section 3.3 of Guidelines).

Q25. Why do I have to write a letter to show management commitment?
A25.
Management commitment is extremely important. When implementing a traceability system, decisions regarding a facility's finances, time, and labour resources will need to be made. Traceability systems will require high-level decisions that must rest with owner/operator or people in charge. Without management commitment, it is very likely that the traceability system will not be implemented.

Q26. What are you looking for when reviewing the letter of management commitment?
A26.
The letter must demonstrate the company's and senior management's commitment to the development, implementation and maintenance of a traceability system. The letter should explain the reasons for applying to be a pilot site, describe the expected benefits for the facility and what resources and capital investments your company is willing to incur to successfully implement the traceability system.

Q27. Who has to sign the letter?
A27.
The letter must be signed by CEO/Chairperson/President/Owner or other authorized officer of the business, and must accompany the application form.

Q28. Do I have to have a single employee responsible full-time for traceability?
A28.
It is important that everyone in the facility be responsible for food safety and traceability. There should be someone responsible for the paperwork needed to develop, implement and maintain a traceability program, but the need for this person to be full-time is dependent on the facility.

Q29. If I am willing to spend <$10,000 to cover capital costs and equipment purchase, am I still eligible for the Traceability Pilot Project?
A29.
Yes, you are eligible. An on-site assessment and interview will determine if this investment is sufficient to move forward as a pilot site.

Q30. Who hires the consultant for the development and implementation of the traceability system under the Traceability Pilot Project?
A30.
OMAFRA will be hiring the consultant.

Q31. What happens if we don't agree with the consultant during the development and implementation phase of the pilot project?
A31.
Please call and ask to speak to the project coordinator at 1-866-641-3663.

Q32. Do I have to provide information for operational/economic studies?
A32.
Yes. The consultant will be gathering data for operational/economics studies (e.g. cost-benefit analysis) directly related to traceability system development, implementation and maintenance (prior, during and post-implementation).

Q34. After I have been selected to be a pilot site, do I have to sign an agreement?
A34.
An agreement drafted by OMAFRA legal representatives must be signed by senior management representing the company.

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