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March 31, 2005

Potential Agriculture and Agri-food Business and Economic Impacts of Proposed Limits on Trans Fats in Canada

Executive Summary

(PDF Version | PDF Help)
Companion Presentation also available

Canadian consumers have always been mindful of the cost of food, though changes in society and a greater awareness of health impacts and environmental issues now play a larger role in the choices consumers make. Consumers in much of the developed world have moved toward healthier eating habits, at least to the extent that our busy lifestyles will allow. Lower fats, less sugar, and more fibre are changes that have been made in recent years.

The relationship between fat consumption and heart disease has been a subject of concern for decades. Research in the late 1940's research found a correlation between animal fat consumption and heart disease. The spurred the growth of vegetable oil production and consumption. During the late 1950's and early 1960's it became recognised that saturated fatty acids from vegetable oil sources were also harmful to health. This caused a move away from tropical oils toward the use of soybean, canola oil and other vegetable oils. These non-saturated vegetable oils were hydrogenated to create solid fats and to give the oils stability in frying and baking processes. The process of hydrogenation created Trans Fatty Acids (TFA) in these products.

Research during the 1990's resulted in a body of scientific evidence showing that TFA consumption raised LDL cholesterol levels in the blood stream, elevating the risk of coronary heart disease.

In response to recognition of the risk Canada and the US passed laws to require the mandatory labelling of trans fat in December of 2005 and January of 2006, respectively. As a measure to further reduce these risks, a motion was passed in the House of Commons to establish a task force to develop a set of regulations within one year to restrict the levels of TFA in food products. Such regulations have the potential to increase economic costs faced by primary producers, oilseed crushers, food processors, food service enterprises and grocery outlets.

The ultimate goal of this study is to understand the potential economic and business impacts on the agriculture and agri-food sector that would occur if an outright ban or mandatory reduction in the use of trans fats was imposed on the Canadian food supply.

This study will attempt to inform readers regarding four areas:

  1. The degree to which trans fats are apparent in the Canadian food system, and the Canadian diet.
  2. The risks associated with the ingestion of trans fats.
  3. Give examples and delineate outcomes resulting from trans fat bans in other jurisdictions.
  4. The economic impacts that may arise given the implementation of a trans fat ban.

(PDF Version | PDF Help)
Companion Presentation also available

Date Modified: 2006-05-11
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