About the CFIA > Reporting to Parliament > Annual Report > Annual Report 2002 - 2003  

ANNEX 1
FOOD SAFETY PERFORMANCE BY PROGRAM

1.1 MEAT HYGIENE

CFIA Role

Meat and meat products represent the Canadian food manufacturing industry's largest sector. Canadians on average consumed 30 kilograms (kg) of beef, 28 kg of pork and 35 kg of poultry in 2002.⁹ Canada imported 476 000 tonnes of meat last year and exported 1.8 million tonnes of meat worldwide. The CFIA inspects approximately 84 percent of domestically produced chickens and 95 percent of domestic red meat. The CFIA is also responsible for inspection of meat imported to, or exported from, Canada.

Description of the Program

The meat hygiene program was the single-largest program area of expenditure for the CFIA in 2002-03. Its delivery cost approximately $176.3 million, or 31.2 percent of total Agency spending. Verification of compliance with federal acts and regulations required approximately 1470 staff including inspectors, veterinarians, laboratory personnel, support staff and management.

The CFIA verifies that the meat industry operates within regulatory requirements to ensure that meat and meat products leaving federally registered establishments are safe, wholesome and appropriately labelled. Under the authority of the Meat Inspection Act, the CFIA enforces meat inspection regulations and sets the policies, product and process standards (including inspection requirements) for meat and meat products, federally registered slaughterhouses and meat processing establishments, importers and storage facilities.

All establishments in Canada that process meat for export or interprovincial trade must be federally registered and must remain in compliance with the regulatory provisions of several federal acts. Provinces and territories have responsibility for meat that is produced in provincially licensed facilities.

Planned 2002-03 Activities and Performance

A key strategic outcome for the meat hygiene program is to encourage and assess the meat processing industry's compliance with federal rules and regulations. The CFIA assesses industry's level of compliance using a variety of indicators, such as the results of establishment inspections, audits and compliance verification, product testing, food safety recalls and enforcement actions.

Establishment inspections, audits and compliance verifications in federally registered establishments verify and promote industry's compliance with regulatory requirements. As of January 2003, 790 establishments¹⁰ were registered with the CFIA and included 127 slaughter facilities, 490 meat processing plants and 173 storage facilities. In addition, there were 54 provincial abattoirs inspected by CFIA inspectors under federal-provincial agreements. The meat hygiene inspection programs are currently in transition, moving from a traditional, hands-on inspection approach to a Hazard Analysis Critical Control Point (HACCP) audit approach.

The ratings indicate overall regulatory compliance of an establishment operator where "AAA," "AA" and "A" indicate that the establishment meets or exceeds the requirements of the Meat Inspection Act or Regulations. Establishments with a "B" rating are considered to be at the limit of acceptability, and those with a "C" rating are judged to be non-compliant with one or more provisions of the Regulations. In all cases, food produced by the establishments is required to meet established health and safety standards.

A sample of 516 establishment reports for 2002-03 was reviewed for ratings. Ninety percent (464) of the establishments maintained an "A" rating or better throughout the year; and 10 percent (49) received a "B" rating or lower at some point in the year. The CFIA requires that establishments rated "B" and "C" correct the deviations and, if there is a potential food safety risk, implement immediate corrective measures. Measures taken in "B" and "C" rated establishments include the development of detailed action plans to correct deficiencies and enhanced inspection oversight by CFIA personnel. Measures may also include suspension of selected operations within the establishment. Chronic inability of establishments rated "B" or "C" to correct deviations can lead to the cancellation of the operator's license to operate or registration of the establishment under the federal meat inspection system. An "F" rating results in the immediate suspension of all operations within the establishment until satisfactory corrective measures are implemented.

The CFIA is currently reassessing the status of establishments that demonstrated persistent non-compliance in 2002-03.

The modernized approach utilizes audits under the CFIA's Food Safety Enhancement Program (FSEP). It requires development, implementation and maintenance of HACCP systems in all federally registered meat and poultry establishments. FSEP verifications include audits of the food safety program of the slaughter or meat processing establishment.

When a facility is granted FSEP recognition, the CFIA switches from traditional methods of inspecting facilities, operations and products to audits of the HACCP system. A full system audit is completed during HACCP recognition, followed by partial audits thereafter. The frequency of auditing depends on food safety hazards, past compliance records and trade requirements.

Of the 624 (81 percent) registered establishments which had requested formal FSEP recognition by March 2003, and which are currently operating under HACCP procedures, 363 (58 percent) were granted formal recognition and 261 are in the process of obtaining recognition. There were 1316 partial audits planned for 2002-03, and 458 (35 percent) were completed. While the lack of FSEP audit delivery impacts on the rate of transition from traditional to FSEP-based inspection, it does not adversely impact food safety because all federally registered establishments undergo regular inspection by CFIA inspectors. Progress in this area has been slow, largely due to the resource intensiveness of the process and the need for additional CFIA staff training.

Training of CFIA inspection staff in FSEP procedures took place throughout the year. By the end of March 2003, 13 percent of all inspection staff had completed the four-course curriculum, which results in FSEP certification. The provision of FSEP training is a CFIA priority. In 2003-04, additional inspectors will be hired and trained to act as special teams to free regular inspectors for FSEP training.

In the poultry sector, the Modernized Poultry Inspection Program (MPIP) has been implemented, on a pilot basis, in 12 (20 percent) of the 59 federally registered poultry slaughter establishments in Canada. This is an increase of one from the previous year. Ongoing monitoring by CFIA on-site inspectors of the various MPIP pilots continues to demonstrate that industry employees trained and accredited as "defect detectors" are as effective in identifying and removing defective carcasses as CFIA inspectors. Furthermore, microbial tests indicate that MPIP provides the same level of assurance as traditional inspection methods. Negotiations with the United States Department of Agriculture (USDA) on the equivalency of MPIP are ongoing.

Imports: Meat and meat products may only be imported from countries approved by the CFIA. Incoming meat products must be certified by the importing country's veterinarians and are subject to inspections by CFIA staff. Last year, approximately 476 000 tonnes of meat were imported from 20 countries, compared to 468 000 tonnes the previous year. Generally there is a high compliance rate due to the CFIA's close monitoring of animal health in the importing country, inspection system similarities and periodic (every two to five years) on-site reviews by CFIA inspectors. Of total imports last year, only 658 tonnes (0.14 percent) were rejected as unsafe for reasons such as contamination or compromised seams on canned products. Rejected products not removed from Canada within a prescribed amount of time were destroyed at the importer's expense.

[D]

The CFIA establishes animal health status, inspection procedures and levels of enforcement in an importing country prior to undertaking on-site reviews. Last year, the CFIA visited 29 U.S. meat establishments as part of a meat inspection system review, of which 17 were rated as satisfactory, four were found unacceptable and eight were rated as critical and given 30 days to correct deficiencies. Meat inspection systems were approved in Brazil, while reviews were initiated in Australia for imports of kangaroo, Tasmanian possum, ostrich and possibly camel. An on-site visit was also conducted for imports of New Zealand ostrich meat. Ongoing foreign country reviews include Romania (canned pork imports), Paraguay (beef), Israel (poultry), the European Union and Hungary (goose fat and duck livers).

In 2002-03, restrictions were placed on the export of fresh boneless beef from Argentina after an outbreak of foot-and-mouth disease. Poultry meat and meat products from the United States were also restricted following an outbreak of Newcastle Disease in California.

Exports: With respect to the export of meat and meat products, the CFIA ensures industry meets the same high level of compliance for exported goods as for domestic products. Canada exported approximately 1.8 million tonnes of meat last year to 116 countries, compared to 1.6 million tonnes the previous year. Of the 2002-03 total, over 99 percent of exported meat products met other governments' food safety requirements, as measured by rates of permitted entry. The 735 tonnes rejected were due to reasons such as contamination, processing defects, weight violations or broken boxes. The high acceptance rate demonstrates a high level of confidence, both in Canada's regulatory system and in the safety and quality of Canadian meat and meat products.

In 2002-03, the CFIA worked with teams of inspectors from the United States and Russia who visited Canada to assess selected Canadian meat establishments. The United States. reviewed 14 Canadian establishments and found 10 to be satisfactory and four that did not fully meet U.S. requirements. Russia audited 25 Canadian pork-producing establishments, of which 23 received export authorization.

[D]

Product testing is conducted for chemical, microbiological and compositional hazards (e.g., undeclared additives) for domestic and imported meat and meat products.

Last year, a total of 109 384 laboratory tests were conducted for residue detection in meat products. On average, the rate of findings for levels in excess of the established maximum residue limits permitted in regulation was very low. The lowest compliance rate found was for antibiotic residue tests (96.9-percent compliance) conducted on-site in slaughterhouses. This is attributed to the fact that these tests are frequently performed on animals deemed suspicious by the CFIA veterinarian in charge of inspection.

Chemical residue monitoring is used to determine the presence of chemicals, such as antibiotics and other veterinary drug residues, growth promotants, pesticides and heavy metals, at levels that exceed maximum residue limits set by Health Canada to prevent adverse human health impacts.

Analysis of sampling data reveals that 11 097 domestic meat submissions were targeted for inclusion in the monitoring program in 2002-03. There were 10 713 domestic submissions sent for laboratory testing (96.5 percent of targeted number). Testing of imported shipments, which is conducted based on the importation profiles rather than predetermined volumes, resulted in the collection of 2643 additional lab tests. Activities in slaughter plants resulted in a further 14 816 laboratory submissions. In addition, 636 meat samples were included under the CFIA dioxin monitoring program.

On average, the rate of findings for levels in excess of the established maximum residue limits permitted in regulation was very low. The lowest compliance rate found was for on-site STOP tests (a rapid screening test for antibiotics) at 96.4-percent compliance. STOP tests are frequently conducted on animals that show signs of abnormalities as determined by the CFIA veterinarian in charge during inspection. These results are often positive, which could explain the higher number of positive samples for on-site STOP tests. These results are comparable to those of previous years. The following table summarizes the results where the number of samples was sufficient for statistical analysis:

Microbiological monitoring is used to determine the presence of harmful bacteria or parasites in meat and meat products. In 2002-03, the CFIA collected 2262 domestic meat samples and 276 imported meat samples. Of these submissions, 1454 tests were conducted for bacteriology, 304 for parasitology and 17 for container integrity.

The bacteriology compliance rate was quite high, at 96.1 percent for domestic meat products and 98.9 percent for imported meat products.

The parasitology compliance rate was 100 percent, with all 304 submissions performed for Trichinella last year being negative. The CFIA routinely tests for Trichinella, a parasite sometimes found in pork, as part of a strategy to declare Canada Trichinella-free.

The compliance rate for tests of container integrity and sterility verification was 82.4 percent, indicating that continued Agency focus is required to improve compliance. A monitoring program for container integrity of imported meat products was also developed in 2002-03. Baseline bacteriology surveys yielded a compliance rate of 84.7 percent. These results will be used to develop performance criteria for specific imported meat products.

Additives: There were 182 domestic and 22 imported meat submissions analysed for nitrites and nitrates last year. The compliance rate was 98.9 percent for domestic and 100 percent for imported meats. A follow-up investigation was conducted on the two unsatisfactory samples and further testing confirmed that the problems were resolved.

Meat standards verification: There were 75 domestic and eight imported meat submissions tested, to verify conformity to calcium, protein and bone particle standards for meat products. The compliance rate was 100 percent. This has not traditionally been a problem area.

Irradiation: Last years' testing program targeted imported products because irradiation of meat is not permitted in Canada. Sixteen imported meat submissions were tested and all were negative.

Recalls: Of 381 food recalls last year, 37 (9.7 percent) were for meat and poultry. This is a slight decrease from the 44 meat and poultry recalls issued in 2001-02. The main causes of recalls were microbiological pathogens such as E. coli, Salmonella or Listeria, extraneous material such as metal or glass, and the presence of undeclared allergens.

E. coli O157:H7 is a bacteria that has been associated with serious food and water-borne human illness outbreaks. Last year, the CFIA issued a Meat Hygiene Directive requiring all federally inspected plants processing raw beef products to strengthen their HACCP plans and scientifically validate them so that E. coli O157:H7 is reduced to below-detectable levels. There were eight recalls of meat products for E.coli O157:H7 in 2002-03.

Meat Hygiene Program Performance Management Pilot Project

From January to March 2003, the Meat Hygiene Program participated in a performance management pilot project. This project was a component of an Agency-wide Performance Management Framework. Key performance indicators were collected and analysed. The pilot was conducted on two types of establishments--meat processing facilities and slaughterhouses. The scope of the pilots targeted 11 meat establishments in Ontario which operate under the HACCP-based Food Safety Enhancement Program (FSEP).

The following table shows the key data collected, over a three-month period, with respect to these indicators. While the ability to draw conclusions is limited due to the short timeframe, the pilot enabled the program to validate indicators, set preliminary targets and conduct preliminary analysis of the key indicators.

The meat slaughterhouse pilot included five establishments in Alberta and Quebec. The key indicators, analysis and action plan are shown in the table below, for the three-month period.

The Agency intends to build on the success of this pilot by refining the indicators and targets and expanding data collection and analysis.

1.2 FISH, SEAFOOD AND PRODUCTION

CFIA Role

On average, Canadians consume approximately 10 kg of fish and seafood¹¹ products per year. Canadian fishers in 2002 landed 572 630 tonnes of fish and 458 036 tonnes of seafood and exported 251 466 tonnes of fish and 251 476 tonnes of seafood. Canada imported 184 845 tonnes of fish and 384 178 tonnes of seafood. All imported and exported fish and seafood is regulated by the CFIA. The Agency also regulates the majority of domestically produced fish, while provinces and territories regulate fish processed and sold within provinces.

Description of the Program

During 2002-03, the Fish and Seafood Program was delivered at a cost of approximately $53.4 million, representing 9.4 percent of total Agency spending. A total of 343 staff were dedicated to the delivery of this program.

Under the authority of the Fish Inspection Act, the CFIA enforces the Fish Inspection Regulations and sets the policies, product and process standards (including inspection requirements) for fish and seafood products, federally registered fish and seafood processing establishments, importers, vehicles used in transportation, fisher-packer facilities and cold storages. Standards cover all aspects of the harvesting and processing of fish products and promote timely and effective intervention at critical stages. The CFIA is responsible for verifying that the fish processing industry operates within regulatory requirements to ensure that fish and fish products are safe, wholesome and labelled appropriately.

Planned 2002-03 Activities and Performance

The CFIA employs several approaches to promote and assess the fish processing industry's compliance, including verification, enforcement and education. Key indicators of performance are industry compliance, enforcement actions, results of product testing and fish- and seafood-related incidents and recalls.

As of March 31, 2003, there were 945 federally registered fish processing establishments in Canada. As a condition of this registration, the CFIA requires that all establishments develop and implement a Quality Management Program (QMP).¹² Each federally registered fish processing establishment designs and implements an appropriate QMP to ensure fish products are processed under sanitary conditions. The result must be a safe fish product that complies with federal regulations.

Verification for federally registered establishments assesses the adequacy of an establishment's QMP, verifying that the establishment applies the plans as described and maintains compliance with regulatory requirements.

Systems Verification is an evaluation of a federally registered fish processing establishment's QMP plan against the QMP Reference Standard, to verify that it complies with the Fish Inspection Regulations. Systems verifications are conducted for establishments applying for registration and for processing operations adding a new operational component to their registration. There were 131 systems verifications conducted in 2002-03.

Compliance Verification (CV) is an audit process carried out by CFIA inspectors to verify a fish processing establishment has implemented its QMP plan and meets the Fish Inspection Regulations requirements. Audit activities may include verifying the QMP operation, inspecting plant conditions and product, taking samples and investigating corrective actions. The emphasis is on verifying¹³ implementation. Plans call for CVs to occur once every four months or once every six months, based on the product risk level. The frequency of planned audits on licensed and QMPi importers (see Imports and exports, below) is based on the degree of known regulatory compliance and on the level of risks associated with imported products. Industry compliance figures, as measured by the number of suspended or revoked registration certificates, are not available on a national basis.

A significant program change implemented in 2002-03 resulted in revised methods of CV delivery and scheduling. This led to 973 CVs conducted in 2002-03, an increase from 606 the previous year. Data collected as part of the Performance Management Framework (PMF) pilot project¹⁴ for the first quarter of 2003 indicates that participating offices completed about 70 percent of planned CVs. This rate is acceptable but further evaluation is required. It is expected that, as inspection staff learn new policies and procedures associated with the program change, the number of completed CVs should more closely match those planned.

Data collected as part of the PMF pilot project indicates a high compliance rate of about 97 percent for 160 CVs conducted by participating offices. Certificates of registration were either suspended or revoked for the remaining 3 percent.

Imports and exports: There were 42 201 export certificates issued in 2002-03 for products exported to 109 countries. There were 1012 licensed importers in Canada last year as of end of May 2003. The import sector applies science-based, risk-management practices by adopting the voluntary Quality Management Program for Importers (QMPi). The QMPi is an ISO-based¹⁵ Quality Assurance program with controls prescribed by the CFIA, to enable QMPi Importers to verify acceptability of their imports. These importers differ from other licenced importers, whose verification of acceptability of imported lots is conducted by the CFIA. Eighteen importers, responsible for about 30 percent of total imports, adhered to the QMPi. This was an increase of two importers over the previous year. Audits were completed on six QMPi importers. The most common reasons for non-conformity were a lack of notification and documentation. Corrective action plans were put in place in all cases.

Product testing occurs through established sampling plans and is conducted for chemical, microbiological, sensory, chemical indicator, package integrity, labelling and net content analyses.¹⁶ Sampling programs are conducted on domestically produced and imported fish products for environmental contaminants, therapeutic drug residues and food additives.

Results for the 41 180 samples tested are not tabulated nationally. When a test reveals that chemical residue limits have been exceeded, the inspector who submitted the test is notified and takes appropriate action, such as ordering disposal of the products. In future, the CFIA's Laboratory Sample Tracking System will be modified to record pass/fail information for product testing, and national tabulation will be available.

In accordance with the National Risk-based Monitoring Plan, testing is carried out for marine biotoxins in shellfish. The CFIA's marine biotoxin monitoring program is proactive, such that shellfish growing areas are typically closed to harvesting before contaminated shellfish are harvested and consumed. Marine biotoxin monitoring programs are in place in coastal areas, with established sampling stations and sampling frequencies to monitor changes in toxin levels. Sampling frequencies are based on such factors as the history of the toxin (both in time of year and location); the likelihood of harvesting, both commercially and recreationally; illnesses; and current events. When biotoxin levels begin to rise, sampling frequency is increased in accordance with the speed of the rise to ensure timely closure to protect human health. Areas that have been closed are monitored on a regular basis, but with increased frequency as biotoxin scores decline toward acceptable levels. Harvest areas are only re-opened once the biotoxin levels are consistently below the acceptable levels. In calendar year 2002, more than 19 000 biotoxin analyses were conducted, which is approximately 1000 more than in the previous year. This increase is a result of an increase in the number of harvest areas and an expanding shellfish industry. There were 173 recommended harvest closures based on marine toxin levels, plus an additional 32 recommended closures for sanitary reasons (e.g., unacceptable faecal coliform levels).

Enforcement: The Agency's response to non- compliance is a graduated process moving from warning letters to registration suspension to registration revocation. Offices participating in the PMF Pilot reported, for the last quarter, that 10 warning letters were issued, 5 registrations were suspended and no registrations were revoked. This indicates that when registration was suspended, the operator of the establishment took the necessary corrective actions to avoid revocation.

Education/awareness activities are carried out on an as- and when-required basis to increase industry understanding of the regulations and standards. Last year, contributions were made to the development of industry training materials prepared by the National Seafood Sector Council.

Incidents/recalls: Incidents may include a problem with the QMP as a result of consumer or trade complaints or unacceptable product inspections. The incidents may involve a recall. The number of domestic and export-related incidents related to QMP registered establishments for the period of January to March 2003 were six and one respectively. In all cases, the CFIA responded by evaluating the establishments' QMP controls and corrective actions. The number of QMP incidents is quite small when viewed in context of the total volume of fish and seafood produced by the approximately 945 registered fish processing establishments.

In 2002-03, of the 381 food recalls issued, 27 (7 percent) were for fish and seafood products. The main cause for recalls in 2002-03 was marine biotoxins in shellfish. In all cases of recalls, the CFIA responded by issuing public warnings and having product removed from store shelves.

Fish and Seafood Program Performance Management Framework Pilot

From January to March 2003, the Fish and Seafood Program participated in a PMF pilot on the QMP portion of the program. A program logic model was developed, which serves as a "road map" connecting activities to final outcomes. Key performance indicators were selected, data was collected and analysed in select geographic areas, and a performance report was presented to senior management. The pilot included 160 of the registered establishments (approximately 16.5 percent of the total in Canada) for the full set of indicators, while other indicators were collected nation-wide.

While the ability to draw conclusions is limited due to the short timeframe, the pilot enabled the program to validate indicators, set preliminary targets and conduct preliminary analysis of the key indicators.

The results of the pilot are shown in the following table and the preliminary analysis of the indicators.

The PMF is being detailed for the remaining parts of the Fish Program and a comprehensive program scorecard will be available for the next reporting period.

1.3 FOOD SAFETY INVESTIGATION

CFIA Role

The Agency's Food Safety Investigation Program promotes public health and helps protect consumers from fraud by investigating consumer and trade complaints and inspecting products and establishments that pose the greatest risk to consumers. Investigations may lead to recalls for imported or domestically produced foods.

Description of the Program

During 2002-03, the Food Safety Investigation Program was delivered at a cost of approximately $24.8 million, representing 4.4 percent of total Agency spending. A total of 167 staff were dedicated to the delivery of this program.

CFIA science committees identify and prioritize potential hazards in the food supply. When the risk is high, the Agency investigates. These investigations include monitoring safety of certain commodities, reviews of the food industry's safe process controls and investigation of complaints from consumers or traders.

The CFIA identifies and investigates concerns about the safety of food with provincial and municipal medical officers of health, and government departments such as Health Canada. With the CFIA, they assist in investigations, exchange information about risks to food safety and participate in management of emergencies.

Planned 2003-03 Activities and Performance

Consumers who may have become ill from eating a product, or who believe they have been defrauded because one product has been sold to them as something else, can complain to the CFIA. All complaints are evaluated. Those that might cause immediate adverse health consequences are acted upon quickly. The CFIA advises those who complain of illness to seek medical advice, and these cases are reported to Health Canada for follow-up.

Last year, CFIA offices throughout Canada conducted about 7600 complaint investigations related to food safety, resulting from telephone enquiries or letters from consumers.

In addition to investigations of complaints related to food safety, the CFIA directs inspection resources toward products and establishments that are determined to pose the greatest risk to consumers. During 2002-03, the CFIA developed or continued 14 food safety projects (out of 19 projects proposed for potential delivery in 2002-03), which are summarized below. For more detailed information on the CFIA's food safety projects, please visit the Agency's Web site at:

http://www.inspection.gc.ca/english/bureau/bureaue.shtml

1.4 FRESH FRUIT AND VEGETABLES

CFIA Role

On average, Canadians consume 64 kg of fresh fruit and 141 kg of fresh vegetables per year.¹⁷ The CFIA contributes to the safety of fresh produce through product sampling and monitoring. Regulations enforced by the CFIA protect consumers, growers, shippers and distributors.

Description of the Program

The Fresh Fruit and Vegetable Program was delivered at a cost of approximately $24.1 million in 2002-03, representing 4.3 percent of total Agency spending. There were 151 staff dedicated to its delivery.

The Fresh Fruit and Vegetable Program has two facets: food safety assessment, and quality inspection and certification. Under the mandate of the Canadian Agricultural Products Act, the CFIA regulates interprovincial and international trade, licenses market dealers, and establishes and maintains quality standards. User fees recover some of the costs of inspection services.

Provinces such as Ontario and Quebec also engage in food safety assessments of domestic and imported fresh fruit and vegetables. Provincial and municipal public health departments become involved in food safety investigations or recalls associated with fresh fruit and vegetables within their jurisdictions.

Planned 2002-03 Activities and Performance

Verification and enforcement activities assess and promote industry compliance with food safety and quality standards for fresh fruit and vegetables. Product testing examines fruit and vegetables to detect chemical or microbiological contaminants.

Verification: CFIA inspectors perform 'destination inspections' to verify and document the condition of domestic and imported produce. The CFIA performed 15 364 of 11 814 planned destination inspections in 2002-03. Of these, 357 resulted in product detentions. Detentions are issued for violations of quality, packaging and labelling requirements of the Fresh Fruit and Vegetable Regulations. Produce that failed to comply was dumped, re-exported, re-graded or re-labelled.

Produce warehouses that pack apples and potatoes for interprovincial shipment may become federally registered establishments, called Registered Produce Warehouses (RPWs). RPWs are responsible for monitoring the quality of their products and may ship apples and potatoes interprovincially without CFIA certification. RPWs must follow the Fresh Fruit and Vegetable Regulations and are monitored periodically by CFIA inspectors. In 2002-03, CFIA inspectors made 189 visits to 117 registered establishments to verify their compliance.

The CFIA planned 362 Customs Clearance Inspections for 2002-03 and performed 841. These inspections apply to imported apples, onions and potatoes. If these products are imported from the United States, the CFIA requires USDA certification. If they are from another country, the CFIA inspects the shipments upon arrival in Canada. Products that do not meet Canadian standards cannot be imported.

Export inspections certify the quality of fruit and vegetables and facilitate trade. The CFIA performed 20 150 of a planned 7 318 export inspections during 2002-03. Most of these export shipments were destined for the United States.

When there is a shortage of supply of a fruit or vegetable, processors and re-packers may request a Ministerial Exemption from packaging, labelling and/or quality requirements of the Fresh Fruit and Vegetable Regulations. In 2002-03, there were 703 exemptions issued for 13 933 shipments of imported produce and 249 exemptions were issued for 4301 shipments of domestic produce.

Product Testing

To protect Canadians from the potentially harmful health impacts of residues of agricultural chemicals on fresh fruit and vegetables, the CFIA implements risk-based chemical residue monitoring programs. For example, products that have demonstrated a history of high compliance are sampled less frequently than products that have a higher violation rate. Products found to be in violation of the Maximum Residue Limits (MRLs) of the Food and Drug Regulations are investigated by the CFIA through more targeted surveillance inspection activities. Should the product continue to violate MRLs, it is subject to detention pending laboratory analysis. As of March 31, 2003, the CFIA had more than 122 growers/shippers on its surveillance list. The monitoring data gathered by CFIA is used by Health Canada to assess the human health risks that these residues may pose to Canadians.

In 2002-03, the CFIA collected 2621 samples of domestic produce and 5055 samples of imported produce for analysis. Samples were analysed for the presence of a wide range of agricultural chemicals or chemical contaminants. For example, when samples of fresh produce are tested for pesticide residues, each analysis screens for the presence of approximately 269 different pesticides. Results, compared to previous years' data, are presented in the following table:

The CFIA analysed 244 domestic and 255 import samples of fresh fruit and vegetables for microbiological contamination in 2002-03. Two domestic and two imported samples were found to be contaminated. Contaminated product was immediately recalled. In both cases, the CFIA conducted follow-up investigations to determine the source of the problem.

The Canadian sprout industry was implicated in six food-borne illness outbreaks that made more than 375 people sick between 1995 and 2001. The CFIA initiated a national inspection and sampling project to assess sprout industry manufacturing practices and to determine the microbiological profile of domestic sprouts. The CFIA also implemented a Draft Code of Practice for the Hygienic Production of Sprouted Seeds. The Canadian Sprout Industry has not experienced a sprout-borne illness outbreak since February 2001. In 2002-03, the CFIA further enhanced its Special Sampling and Inspection Project for Sprouts by developing and implementing a module that trained over 100 CFIA inspectors and 22 provincial inspectors on how to apply General Principles of Food Hygiene Assessment Standards to sprouts.

Irradiated avocados, guavas, mangoes and papayas are not permitted in Canada. The CFIA analysed 124 samples of these fruits in 2002-03. No irradiated product was found.

Incidents and recalls: Of 381 food recalls in 2002-03, five were for fresh fruit and vegetables. Three were for product from non-federally registered establishments and two were for imported products.

In April 2001 and in May 2002, Mexican cantaloupes contaminated with Salmonella poona caused numerous illnesses in Canada and two deaths in the United States. In November 2002, the CFIA issued an import alert on all Mexican cantaloupes, which has limited imports to a small number of growers. CFIA officials are working with the Mexican government on the evaluation and recognition of a Cantaloupe Certification Program (CPG) to minimize the risk of future contamination. Currently only cantaloupes from CPG-certified establishments are allowed to be imported into Canada.

Education/awareness activities take place on an as- and when-required basis to increase industry's understanding of regulations and standards. The CFIA Web site offers food safety fact sheets on fresh fruit and vegetables. More fact sheets are currently under development.

1.5 FAIR LABELLING PRACTICES PROGRAM

CFIA Role

The CFIA's work in regulating the net quantity, composition, labelling and advertising of food products is important to Canadians as it protects consumers from deceptive and misleading practices and facilitates fair competition for industry. The CFIA contributes to the compliance of foods produced or imported by establishments that are not federally registered, and foods that are manufactured, or packaged and labelled at the retail level.¹⁸ These food products account for approximately 57 percent of Canadian consumers' food expenditures (excluding restaurants).

Description of the Program

During 2002-03, the Fair Labelling Practices Program was delivered at a cost of approximately $18.8 million, or 3.3 percent of Agency spending. A total of 94 staff were dedicated to the delivery of this program.

The CFIA protects Canadians from unfair market practices by enforcing the fraud and labelling provisions of the Food and Drug Regulations and the Consumer Packaging and Labelling Regulations for domestically produced and imported food products at the manufacturing, import and retail levels of trade. The CFIA targets high-risk products and establishments, inspects and analyses food products, and assesses industry control systems.

The provinces and territories have a limited role in this area. The CFIA has a memorandum of understanding for inspection of non-registered plants with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation du Québec. Food safety is enforced at the retail level by municipalities. Health Canada develops regulations on nutrition labelling, nutrient content claims and health claims.

Planned 2002-03 Activities and Performance

The CFIA deters deceptive practices by investigating consumer and trade complaints and using inspection, product testing and enforcement to encourage compliance. Inspection activities include answering enquiries, conducting label reviews, and carrying out product inspections and laboratory analysis. Key performance indicators are the level of CFIA service delivery and improvements in industry compliance. The Agency targets priority areas based on consumer complaints and risk assessments. As such, these compliance rates are not indicative of the broader marketplace compliance in these areas. However, the rates for these targeted commodities, importers and producers are tracked individually to monitor improvements in compliance.

The Agency is effectively targeting priority areas as it continues to find issues with quantity, composition, labelling and advertising. Also, improvements in specific commodities, such as ground beef, olive oil and sports nutrition products, demonstrate the effectiveness of the planned interventions.

Complaints and Enquiries

During 2002-03, the CFIA responded to enquiries, fulfilled requests for label reviews, and investigated consumer and trade complaints. Key indicators of performance include the prompt and efficient response to these requests for assistance.

Although approximately 30 percent fewer inquiries were received during this past year, this continues to be an important mechanism to facilitate compliance through the provision of information to industry regarding regulatory requirements. Label reviews identify violations before the labels are applied to food and distributed in the marketplace, and serve as an efficient mechanism to enhance labelling compliance. While nutrition labelling has been voluntary except when a nutrient content claim was made, new nutrition labelling regulations promulgated by Health Canada on January 1, 2003, will require the mandatory declaration of an expanded list of nutrients on most foods. Although there was a reduction in the number of label reviews during 2002-03, it is expected that these new regulations will result in a dramatic increase in the number of labels submitted for review during 2003-04. The CFIA places a high priority on complaint investigations. During 2002-03 the CFIA investigated approximately 30 percent more complaints than in previous years.

Establishment and Product Compliance

The CFIA focuses its inspection activities for domestically produced and imported food products at the manufacturing, import and retail levels of trade. These results are described below.

Domestically manufactured foods: There were 714 inspections of priority foods (foods determined by the CFIA to pose a high non-compliance risk) produced by non-registered domestic food manufacturing establishments and they resulted in the identification of 1626 violations. All violations resulted in industry education and appropriate enforcement action, while 149 of those resulted in advanced enforcement action such as product seizure.

Although the composition compliance rate is showing improvement due to the CFIA's efforts in this area, the overall compliance rate for domestically produced products has remained fairly constant over the past three years. The compliance rate for advertising is low because inspections are carried out almost exclusively in response to complaints. A compliance project, to direct inspection attention to advertisements on radio and television stations, was not implemented as planned during 2002-03 due to other work priorities. This initiative is scheduled for 2003-04.

Retail food inspections: The CFIA directs resources toward establishments and products that pose the greatest risk to consumers. A total of 2563 inspections of priority food products manufactured or packaged and labelled at retail outlets, such as meat, fish, dairy, bakery, fresh fruits and vegetables and deli products, resulted in the identification of 12 187 violations. All violations resulted in trader education and appropriate enforcement action, while 514 of those violations resulted in enforcement action such as product seizure.

Key indicators of performance are improvements in industry compliance through the identification and correction of violations. Composition and advertising compliance has improved over the past three years; however, the labelling and net quantity compliance of these products has dropped and requires improvement.

Imported foods: There were 2304 violations identified after 770 inspections took place of priority foods imported by non-registered food importers. They resulted in trader education and appropriate enforcement action, while 339 of those violations resulted in enforcement action such as product seizure.

Because the CFIA's inspection strategies in 2002-03 targeted imported products with lower compliance rates, and increased the focus on importers responsible for these products, the composition and labelling compliance rates for imported food products have continued to drop and are very low. The variety and volume of foods imported to Canada have also increased. To improve compliance, the CFIA will continue to provide information to importers and encourage them to develop control systems to ensure that foods they import meet Canadian regulations.

Priority Projects

In addition to ongoing product and establishment inspections, the CFIA also establishes and delivers priority projects in areas of high risk. The following are examples of some initiatives undertaken by the CFIA in 2002-03 to protect consumers from unfair market practices:

Ground beef adulteration: Ground beef constitutes approximately 35 percent of all beef sales. Federal regulations dictate that ground beef must be composed exclusively of beef and cannot be adulterated. Ground meats that contain foreign species, cereals or sulphites result in economic loss to consumers and a health hazard to allergy sufferers. A less expensive meat or cereal may be added to a ground meat product to increase profits. Sulphites give ground meats the appearance of being fresh when they are not.

During the past three years, 1167 ground meat samples have been analysed from both independent and chain stores for foreign species adulteration.

All stores that failed initial testing received a written warning letter. Official samples were taken so prosecutions could be initiated if violations continued. During 2002-03 a greater emphasis was placed on small independent stores in rural areas, as many chain stores instituted new control procedures in 2001-02 to ensure that the ground meats they sell are not adulterated. It is clear from the 33 samples showing adulteration in 2002-03 that ongoing vigilance is required in this area.

During 2002-03, 436 samples of ground meat were analysed for sulphites and cereal. None of the samples showed sulphite adulteration and only one was adulterated with cereal, indicating that this is an area of relatively high compliance.

Sports nutrition products include food in the form of powders, bars and beverages that are designed to supplement the diet so as to achieve improved physical performance. This priority project was carried over from 2001-02 when the CFIA determined a high level of non-compliance with respect to these products. During 2002-03, the CFIA sent a letter to more than 4000 retailers, importers, manufacturers and distributors of sports nutrition food products informing them of their responsibilities to comply with Canadian regulations. The letter stated the CFIA's intention to inspect and take enforcement action against dealers of non-compliant products at all levels of trade. The letter was accompanied by labelling and product information and provided industry with guidance on product acceptability. Through product sampling and testing conducted in 2002-03, the CFIA found 72 of 180 samples (40 percent) in compliance for composition, and 85 of 190 samples (45 percent) in compliance for labelling. This was a significant improvement in compliance from 2001-02 when the compliance rates were 6 percent for composition and 4 percent for labelling. Common compositional violations included addition of vitamins, minerals in excess of permitted levels, presence of non-permitted substances and an absence of declared ingredients. Major labelling violations included non-permitted drug and performance claims. As a result of the CFIA's continued focus in this area, some industry associations are now actively promoting compliance among their members. The CFIA's 2003-04 strategy includes inspections at all trade levels and provision of guidance for the establishment of industry quality control procedures. This project will be expanded in future years to include a broader range of 'active living' products, including weight loss products, nutritional supplements and meal replacements.

Adulteration of olive oil may include the addition of cheaper substitute oils. As it is impossible for consumers to tell which products have been adulterated, CFIA laboratories test samples to detect this illegal practice. Results of this testing over the past five years are shown below. In 2002-03, the CFIA focused its investigation on foods packed in, or said to contain, olive oil. A number of these foods were found to contain olive pomace oil, sunflower oil or canola oil instead of olive oil. As a result, the CFIA initiated enforcement actions such as issuing orders to remove products from sale. The CFIA will continue to analyse olive oil, and foods said to contain olive oil as an ingredient, and prosecute any company found to be in violation of regulatory standards.

1.6 PROCESSED PRODUCTS

CFIA Role

This program ensures the safety of processed products such as canned and frozen fruit and vegetables, prevents fraud and enforces quality standards.
The CFIA ensures that products made in federally inspected establishments for interprovincial trade or for export, as well as those imported into Canada, are safe, wholesome, properly packaged and labelled.

Processed products, as defined under the Processed Products Regulations and the Maple Products Regulations, occupy a major share of the Canadian food market. Annual per capita consumption of processed fruit and vegetable products is estimated at 54 kg. Canada is the world leader in exports of maple products with sales to more than 30 countries. In 2002-03, 28 685 tonnes of maple were exported to the United States, Europe, and Asia, accounting for more than $144 million in revenues.

Description of the Program

During 2002-03, the Processed Products Program was delivered at a cost of approximately $14.3 million, representing 2.5 percent of Agency expenditures. Seventy full-time employees were dedicated to the delivery of this program.

Under the authority of the Canada Agricultural Products Act, the CFIA sets the standards for processed products, federally registered processed product establishments, importers and exporters.

Registration is required for establishments that prepare processed fruit, vegetable and maple products and trade them interprovincially or internationally, or when they apply a Canadian grade mark. There were 572 federally registered establishments for processed products in Canada in 2002-03.

Provincial and territorial inspectors conduct similar activities in non-federally registered establishments, which produce products for local consumption (within provincial borders).

Planned 2002-03 Activities and Performance

The CFIA promotes and verifies the compliance of processed fruit, vegetable and maple product industries though verification and enforcement activities and education. Key performance indicators include industry compliance, enforcement actions, product testing results and product-related incidents and recalls.

Verification of processed products establishments are accomplished through two approaches:

FSEP-recognized Establishments: Verification ensures the FSEP program is applied as described by the manufacturer. The Processed Products Program, prior to granting FSEP recognition, verifies that the FSEP program contains all necessary components and controls to ensure compliance.

In 2002-03, 14 establishments requested FSEP recognition and seven were approved. There are 38 FSEP-recognized establishments in Canada today, or 6.6 percent of all registered establishments, primarily because the FSEP program is still voluntary. The number of FSEP-recognized plants is expected to continue to increase in keeping with global trends.

In 2002-03, 56 regulatory system audits were planned and 24 were completed. There were no suspensions or revocations of certificates, indicating satisfactory compliance rates. The CFIA acknowledges the need to increase regulatory system audits to cover a greater number of FSEP-recognized establishments. This remains a challenging task because of its resource intensiveness, and the need for trained inspectors for the adequate delivery of system audits.

Non-FSEP recognized Establishments: Verification activities for non-FSEP-recognized establishments ensure establishments meet requirements set out in the Processed Products Regulations and the Maple Products Regulations. These activities may include inspecting plant and product conditions, collecting samples, investigating corrective actions, and performing laboratory analysis. Verification of registered establishments is based upon criteria such as production levels and previous ratings.

Enforcement: Activities are carried out in response to non-compliance and may include product detentions, warning letters, suspensions, cancellations or revocations of registration certificates. In 2002-03, 559 processed products detentions were issued by the Agency. These products were returned to their country of origin, destroyed or brought back into compliance.

Establishment inspections: CFIA inspectors carried out 1002 in-depth and directed inspections at registered establishments in 2002-03. An in-depth inspection is a full inspection, while a directed inspection is partial and reviews deficiencies noted during previous in-depth inspections. In-depth inspections showed a compliance rate of 96.8 percent for processed fruit and vegetables, and 96.2 percent for maple products, in 2002-03. This compliance rate is consistent with previous years. Non-compliance indicates infractions in premises, transport and storage, equipment, personnel, sanitation and pest control, records and manufacturing, which trigger directed inspections to ensure corrective actions have been effective.

Imported product testing: Overall, compliance has remained high compared to previous years. However, some compliance rates (e.g., label verification, standard/composition verification) for certain imported products have decreased with the implementation of the Targeted Imported Processed Products Program, in which suspect products are targeted for increased inspections. Non-compliant products are either returned to the country of origin, detained or brought into compliance by, for example, applying correct labels. The following tables show compliance rates for imported and domestic processed products since 2000.

Domestic product inspections for label, net quantity, ingredient and grade verifications have resulted in increased compliance rates compared to last year. There were minor decreases in compliance for standard/composition and container integrity verifications, but compliance rates are still considered satisfactory.

Certification of exported products: At the request of industry, processed products destined for export are certified by the CFIA. The certificates facilitate trade by ascertaining product compliance with the applicable Canadian regulatory requirements. In 2002-03, 300 export certificates were issued compared with 307 certificates in 2001-02.

Product testing is used by the CFIA to monitor processed products for the presence of chemical residues or microbiological and compositional hazards.

The CFIA's chemical residue monitoring program for processed products uses a risk-based approach to promote compliance with maximum residue limits (MRLs) for agricultural chemicals such as pesticides, metals and environmental contaminants.

Domestic chemical residue monitoring: In 2002-03, 469 domestic processed fruit and vegetable samples were collected and analysed. In addition, 148 domestic surveillance samples were taken of "suspect" products.

The monitoring program included intensive testing of apple juice and cider for patulin contamination. Patulin is a harmful mycotoxin that may be found in fruit and some vegetables as a result of storage rot. Analysis of the results of chemical residue testing demonstrated that, last year, the highest rates of violation were for patulin in apple juice (22.0 percent) and apple cider (15.1 percent). As a result of these findings, the CFIA has increased its surveillance inspections and will be collecting additional samples in 2003-04.

The monitoring program also included a survey of infant and baby foods for pesticide residues. The results were very encouraging, as all of the 309 samples tested were found to be in compliance.

Imported chemical residue monitoring:
In 2002-03, 707 imported processed products samples were collected and analysed. In addition, 19 imported surveillance samples were taken from "suspect" shipments. The chemical residue test results revealed no violations in infant and baby foods, apple juice, apricot nectar, or in canned apricot, peaches or plums.

Microbiological monitoring is used by the CFIA to address areas of high risk. For example, sampling for Listeria monocytogenes was carried out last year on imported and domestic ready-to-eat food products such as frozen peas, corn, spinach and berries. In 2002-03, the CFIA collected 314 samples out of a total of 463 planned (67.8 percent) for microbiological analysis. The overall compliance rate for products tested was very high (94.9 percent).

Compositional analysis included testing for sulphites, vitamin C, calcium and artificial sweeteners. In 2002-03, the Agency collected 388 samples for compositional analysis and 34 (8.75 percent) were determined to be unsatisfactory, indicating that this is an area that requires continued Agency focus.

Incidents/recalls: Of 381 recalls in 2002-03, 61 (16 percent) were for processed products, 32 (53 percent) were for processed fruits, 15 (25 percent) were for processed vegetables and 14 (23 percent) were for maple products. Imported products accounted for 79 percent of all processed products recalled and 29.5 percent of recalled processed fruit and vegetable and maple products were from non-registered establishments. Imported products not complying with regulations were, in most cases, sent back to their country of origin. Domestic products were disposed of or brought into compliance.

Education/awareness activities are carried out to enhance industry understanding of current regulations and standards. In 2002-03, the Processed Products Program conducted a series of presentations to help industry better understand and adjust to changes to the Processed Product Inspection Manual and Regulations.

1.7 EGG

CFIA Role

Canadians consumed approximately 15.4 dozen eggs per capita, as shell eggs or ingredients in food products, in 2002-03.

The CFIA's Egg Program promotes public health by verifying that shell eggs and processed egg products from federally registered establishments, and imported eggs and egg products, are wholesome and safe for consumption. The CFIA's regulatory activities help to maintain consumer and market confidence that eggs are graded according to established standards and are packaged and labelled to correctly inform consumers.

Description of the Program

The CFIA is responsible for verifying that the egg industry operates within regulatory requirements. Under the mandate of the Canada Agricultural Products Act, the CFIA enforces the Egg Regulations and the Processed Egg Regulations. The CFIA also sets the policies, product and process standards for eggs and egg products, and for federally registered egg grading stations and egg processing plants. Regulations cover all aspects of grading, processing and packaging of eggs and egg products.

During 2002-03, the Egg Program was delivered at a cost of approximately $10 million, representing 1.8 percent of Agency spending. A total of 59 staff were dedicated to delivery of the Egg Program across Canada.

The CFIA works with the Canadian Egg Marketing Agency (CEMA) and provincial partners on food safety. CEMA and provincial marketing boards test for the presence of Salmonella enteritidis in layer barns, and the CFIA monitors federally registered grading stations. These programs help to identify and control potential hazards. Eggs are a supply-managed commodity, and the Department of Foreign Affairs and International Trade is responsible for issuing import permits for eggs and egg products. The CFIA monitors imports to ensure shipments have valid permits.

Planned 2002-03 Activities and Performance

In delivering the Egg Program, the CFIA inspects both establishments and products. Federal registration is required for all establishments that process eggs, apply a Canada grade name, or engage in interprovincial or international trade of shell or processed eggs. The CFIA inspects Canada's 342 federally registered egg grading facilities and 19 processed egg facilities. Sanitation, operation, maintenance and employee food-handling practices are monitored. Last year, 1400 establishment inspections, or 75 percent of those planned for the year, were carried out at shell egg grading stations. For shell egg establishments, inspection frequency is based on compliance rates from the previous five inspections and on the volume of eggs graded. Larger volume establishments undergo more frequent inspections. Establishments that do not maintain an acceptable rating are required to implement an action plan to correct problems. The CFIA may suspend or de-register the establishment.

CFIA inspectors conduct ongoing monitoring of plant sanitation and process controls in the 19 processed egg establishments and complete weekly written reports detailing issues that establishment operators must correct to maintain compliance.

Registered establishments are subject to environmental testing to monitor for the presence of Salmonella and other potentially pathogenic microorganisms. In shell egg grading stations, ungraded and graded product areas are swabbed to monitor for Salmonella. Last year, 517 environmental samples were taken in shell egg grading stations, representing 62 percent of the planned sampling for the year. Five percent of tested samples were found to be positive for Salmonella. In all cases, when a positive test is received, the plant must be cleaned thoroughly and the plant sanitation program reviewed. A follow-up sampling is conducted to verify that corrective actions were effective.

Sampling of egg wash water is also carried out in shell egg grading stations. Wash water is tested for pH, temperature and aerobic colony counts. These factors, when properly maintained, reduce the survival chances of Salmonella. Last year 298 wash water samples were analysed, representing 78 percent of the samples planned for the year. The compliance rate was 90 percent. When wash water samples exceed established standards, the plant must review its wash water monitoring program and take corrective steps. A follow-up sampling is taken to verify the corrective action was effective.

Sampling for Salmonella and Listeria monocytogenes in processed egg establishments verifies the effectiveness of sanitation procedures, preventing these bacterial threats to human health. Last year, 56 environmental samples, or 82 percent of those planned for the year, were taken. The compliance rate was 91 percent. When a positive test is received, the plant must act immediately by cleaning the area thoroughly and reviewing its plant sanitation program. A follow-up sampling verifies the corrective action was effective.

Product inspection focuses on imported and domestic shell eggs and processed eggs. The CFIA monitors shell eggs for the following: grade compliance, nutritional composition, microbiological contamination and chemical residues. In 2002-03, 1228 domestic shell egg product inspections were carried out, representing 67 percent of the target for the year.

Grade compliance monitoring includes inspection for quality and safety factors such as weight, freshness, cleanliness and shell soundness. In 2002-03, 2869 lots of shell eggs were monitored for grade compliance. The rate of compliance was high at 97 percent, compared with 96 percent in 2001-02. The main reasons for product rejection were health and safety (dirty or cracked shells) and fraud (underweight product). Non-compliant product was re-graded, sent for processing and pasteurization, or discarded.

Nutritional composition analysis includes testing for nutritional claims such as cholesterol, omega-3 fatty acids and other fats to verify that claims on egg carton labels are accurate. Laboratory testing revealed that 52 percent of samples tested were in violation. While this is not a food safety issue, it does denote a misrepresentation to consumers of the product's nutritional composition. Since this is an area of concern, the CFIA will focus on nutritional claims made by the egg industry. Non-compliant test results lead to follow-up investigations, which may require the removal of claims from labels.

Over the next few years, nutrition facts tables will appear on egg cartons and processed egg packages, as a result of new Health Canada regulations. Mandatory declaration of nutrition facts will allow consumers to compare the nutrient content of specialty eggs (e.g., omega-3 and vitamin-enhanced eggs) and egg products.

Foreign countries exporting to Canada must first have a national inspection system and standards and processing controls equivalent to Canadian
standards. Imported products are certified by the appropriate authorities of the foreign country and monitored by the CFIA for compliance upon arrival in Canada.

In 2002-03, there were 8.3 million dozen shell eggs imported for the table market, with a grade compliance rate of 94.8 percent, down from 97 percent in 2001-02. Another 11.1 million dozen shell eggs were imported for the processing industry.

In 2002-03, 187 imported shell egg samples were tested for the presence of Salmonella enteritidis in the internal contents of the eggs. No violations
were found.

Processed egg products are sampled for microbiological contamination, such as Salmonella and Listeria monocytogenes, and for composition to verify that regulatory standards are met.

A total of 105 million kg of processed egg products (liquid, frozen, dried or cooked egg products) were produced in Canada last year. Samples representing 6.4 million kg, or 6 percent of product, were monitored for microbiological and compositional compliance. The rate of compliance was 94.5 percent. Product found to be in violation was assessed and then reprocessed, designated as inedible product, or discarded as appropriate.

There were 9.2 million kg of processed egg imported in 2002-03, of which 91.6 percent was used at Canadian egg processing facilities. Sixty loads of liquid, frozen or dried pasteurized product were monitored for microbiological and compositional compliance, and 59 loads were in compliance.

CFIA inspectors certified 12.4 million kg of processed egg for export to 24 countries. Exported product is certified to meet Canadian safety and quality standards and the requirements of importing countries. Any non-compliant product returned to Canada would be assessed to determine the reason for the rejection and the appropriate corrective action required. In 2002-03, no exported product was returned for food safety concerns.

Chemical residue analysis: The CFIA tests both domestic and imported eggs and egg products for the presence of chemical residues, such as veterinary drugs, antibiotics, pesticides and environmental contaminants, that may exceed Health Canada limits and pose a human health risk. Last year, 2614 lots (1459 domestic and 1155 imported) were tested with a compliance rate of 99.9 percent. There was only one domestic shell egg sample found to be in violation because it contained clopidol, a veterinary drug residue that controls coccidiosis in animals.

Incidents/recalls: CFIA inspectors responded to 101 complaints last year concerning imported and domestic shell eggs and egg products. The complaints related to grade compliance, illegal marketing of ungraded eggs and the use of false claims. Of 381 food recalls issued by the CFIA last year, only one involved egg product produced in a federally registered plant. The product was recalled due to a quality concern.

1.8 DAIRY

CFIA Role

Canadians on average consume 87 litres of milk, 14 litres of yogurt and ice cream, and 18 kg of butter, cheese and other dairy products per year.¹⁹ Of 459 dairy establishments in Canada, approximately 291 or two-thirds are federally registered and fall under the purview of the CFIA.

Description of the Program

During 2002-03, the Dairy Program was delivered at a cost of approximately $8.6 million, or 1.5 percent of total Agency spending. A total of 61 staff were dedicated to the delivery of this program.

Under the authority of the Canada Agricultural Products Act, the CFIA enforces the Dairy Product Regulations. They set out requirements for registration, operation and maintenance of establishments, grading, inspection, packing and labelling of dairy products, and interprovincial and international trade. The CFIA is responsible for verifying that the dairy industry operates within regulatory requirements.

All establishments processing dairy products for export or interprovincial trade must be federally registered. In 2002-03, there were 291 federally registered dairy plants in Canada.

Health Canada develops health and safety standards for dairy products, which are enforced by the CFIA. The Canadian Dairy Commission develops supply management policies and programs to meet the needs of industry. Departments of agriculture and/or health in all provinces manage and control dairy quality programs and set and apply sanitary standards for milk production and dairy processing. There are about 168²⁰ provincially inspected dairy establishments that produce and sell their products within province. Provincial marketing boards and agencies govern the production and marketing of milk within their jurisdictions.

Planned 2002-03 Activities and Performance

The CFIA uses a series of approaches to encourage and assess the dairy industry's compliance, including establishment and product inspection, enforcement activities and education.

Establishment inspections: The CFIA inspectors carry out establishment inspections to ensure that dairy products are produced under sanitary conditions.

Establishments are subject to three types of inspections. In-depth inspection is an annual evaluation of the establishment's control programs, equipment and environmental conditions. Good Manufacturing Practices (GMP) inspections take place about six times per year and focus on activities that have the most impact on public health, such as pasteurization. They also verify that previously identified infractions have been corrected. Establishments found to have critical health and safety deficiencies are ordered to correct them immediately or the implicated product is detained or recalled. The CFIA completed 1034 or 87 percent of 1195 planned GMP inspections in 2002-03, compared with 1018 completed in 2001-02.

Enforcement activities: The Agency uses recalls, warning letters, product detentions, suspensions of registrations or deregistration to deal with non-compliance. In 2002-03 there were 39 product detentions issued for domestic dairy products and 64 detentions issued for imported dairy products. Detained products must be brought into compliance or destroyed. Imported products are returned to the country of origin. Common reasons for detention include inaccurate labelling or microbial problems.

The final type of inspection is the audit, performed in FSEP-recognized establishments. Audits verify that an establishment applies its specific HACCP plans. The CFIA has granted FSEP recognition to 47 registered dairy establishments, including 10 that gained recognition in 2002-03. In total, 87 establishments have requested recognition and 82 are in the process of being recognized. Adoption of HACCP plans is voluntary.

The Agency conducted 197 in-depth inspections of the 230 planned, representing 85.7 percent of those planned for the year. Of these verifications, 93.9 percent (185) were in compliance with regulations. This rate is similar to the compliance rate for 2001-02, when the compliance rate was 93 percent and 196 in-depth inspections were completed.

Product inspections: Product inspections verify net quantity, label, ingredient and grade verifications, and container integrity. Sampling plans are established yearly to monitor compliance to safety and quality standards and to detect unfair marketing practices such as adulteration and incorrect label declarations. Laboratory testing is performed by the CFIA in addition to tests by the registered establishment or importer. Last year, dairy products assessed by the CFIA demonstrated high rates of compliance.

Incidents and recalls: Of 381 food recalls in 2002-03, 16 were for dairy products. Nine were from federally registered establishments, five were for imported dairy products and two were from non-federally registered dairy establishments. The main cause was pathogenic bacteria. When recalls are issued, the CFIA ensures the product is removed from distribution and inspectors check store shelves as part of effectiveness procedures. This is followed by an investigation into causes of the recall to make sure corrective actions are taken so the incident is not repeated.

Education/awareness: Activities take place on an as- and when-required basis to increase industry's understanding of regulations and standards. The dairy program undertakes educational activities in the Dairy Technical Association, a national industry group.

1.9 HONEY

CFIA Role

Canadian honey consumption averages about one kg per person per year. During 2002 about 10 000 Canadian beekeepers produced 33.3 million kg of honey. Up to half of the total was exported, primarily to the United States. About 150 Canadian firms imported approximately 8.1 million kg of honey, mainly from Argentina, China and the United States.

The CFIA enforces regulations so that domestically produced and imported honey meets federal standards. The Agency's activities promote public health by verifying that honey is safe and suitable for consumption. The CFIA's regulatory activities help to maintain consumer and market confidence in honey.

Description of the Program

During 2002-03, the Honey Program was delivered at a cost of approximately $2 million, representing approximately 0.4 percent of total Agency spending. Ten staff were dedicated to the delivery of this program.

Under the mandate of the Canada Agricultural Products Act, the CFIA enforces the Honey Regulations, which set out requirements for the registration, operation and maintenance of honey establishments, in addition to the grading, inspection, packing and labelling of honey and its interprovincial and international trade. The CFIA verifies that the Canadian honey industry operates within regulatory requirements to ensure any honey imported or leaving federally registered establishments is safe, wholesome and appropriately labelled.

All honey establishments that apply a Canada grade to their product or produce, or pack or pasteurize honey for export or interprovincial trade must be federally registered. As a condition of this registration, the CFIA inspects all establishments once a year.

In most provinces the beekeeping industry is served by provincial apiculturists who are responsible for the registration of beekeepers, bee health, management practices and other issues affecting beekeepers. The CFIA enforces honey health and safety standards set by Health Canada.

Planned 2002-03 Activities and Performance

The CFIA uses several approaches to encourage and assess the honey industry's compliance, including verification and enforcement activities and education. Performance indicators for the Honey Program are industry compliance, enforcement actions, results of product testing and honey-related incidents and recalls.

Establishment inspections, audits and compliance verifications: CFIA inspectors verify that federally registered honey establishments meet regulatory requirements. In 2002-03, there were 176 beekeepers registered as honey producer-graders in Canada. Additionally, 31 establishments packed honey and 9 honey pasteurizing facilities maintained federal registrations. Establishments are subject to inspections or audits.

In-depth inspections are annual evaluations of establishment control programs, equipment and environmental conditions. The Agency conducted 201 in-depth establishment inspections; 99 percent were in compliance with regulations, a rate identical to last year's. When an establishment is out of compliance, the CFIA takes action such as directed inspections to verify that deficiencies have been corrected. There were 59 directed and follow-up inspections in 2002-03.

FSEP is a voluntary, HACCP-based program for the honey industry. Audits may be performed by the CFIA in FSEP-recognized establishments. One FSEP audit took place in 2002-03. There are two FSEP-recognized honey establishments in Canada.

Product testing includes chemical residue, adulteration, compositional and microbiological testing. Honey manufactured in registered establishments and imported honey is subject to inspection. Verification of grade, labels, net quantity and ingredients ensures that consumers are not being misled.

Chemical residue monitoring tests for chemicals such as veterinary drugs and or environmental contaminants. In 2002-03, 257 samples were analysed. The following compliance rates were found: 77 percent compliance for tetracyclines, 96 percent for sulfonamides, 99 percent for benzaldehyde and 99 percent compliance for phenols. Of 957 submissions of imported honey analysed, there was 88 percent compliance for tetracyclines, 77 percent for sulfonamides and 97 percent compliance for phenols. Extensive testing carried out on honey from China determined that honey of Chinese origin was contaminated with the banned drug, chloramphenicol. Testing in previous years on honey from China revealed that sulfa drugs were also a problem. As a result, the CFIA placed Chinese honey under a strict hold and test procedure for most of 2002.

Last year, the CFIA worked closely with the Canadian honey industry and Health Canada to set appropriate Maximum Residue Limits (MRLs) for drugs approved for use in the Canadian beekeeping industry.

Adulteration sampling determines if cane sugar or corn syrup are blended into honey. These sugars are cheaper than honey and make adulteration a lucrative but illegal practice. Product testing was carried out on 31 domestic samples and 91 imported samples. The compliance rate on domestically produced honey was 94 percent, compared with 92 percent in 2001-02. Honey adulterated with other sugars was seized by CFIA inspectors and removed from sale.

In 2002-03, the compliance rate for imported honey was 95 percent, compared with 80 percent in 2001-02 because the CFIA's sampling of imports has discouraged foreign countries from exporting adulterated product to Canada.

Compositional sampling monitors for factors such as moisture, colour, sucrose, acidity and solids, to ensure that pure honey is being marketed. The compliance rate for domestic honey was 100 percent, and 67 percent for imported honey.

Microbiological sampling: There were 35 samples of domestic honey and 10 samples of imported honey analysed for the presence of yeasts and moulds. There was 97 percent compliance on domestic honey and 90 percent on imports.

The following table outlines additional tests performed on honey to verify grade standards, label accuracy, net quantity claims and export certification.

Enforcement activities: The CFIA's graduated response to non-compliance incidents may include warning letters, suspensions of registration, deregistration, detention of product and product recalls.

In 2002-03, 40 warning letters were sent to registered establishments found with honey in violation of the Food and Drugs Act. This was primarily due to a lack of established MRLs for antibiotics traditionally used by beekeepers to control diseases in the hive. Laboratory methodologies used at CFIA's residue labs are more sensitive than in past years, resulting in an increase in product violations. With no established MRL, a positive result, regardless of the level, is considered to be a violation that requires enforcement action. There were 19 detentions of domestic honey and 46 detentions of honey imported into Canada. Honey of Chinese origin made up the majority of import detentions.

Incidents/recalls: In 2002-03, of 27 food recalls for honey, 21 were for imports, 5 were for honey from unregistered establishments and 1 was for honey from a federally registered establishment. There were 5 honey recalls in 2001-02, 4 for imported honey and 1 for honey produced in a registered establishment. The main reason for the increase in the number of recalls in 2002-03 was findings of chloramphenicol in Chinese honey. As a result, a strict honey import policy was implemented in 2002, and 100 percent of honey from China was tested.

Education/awareness activities are carried out collaboratively with provincial beekeeping associations and the Canadian Honey Council, to increase the industry's understanding of regulations and standards. The Honey Establishment Inspection Manual and the Honey Product Inspection Manual are being updated. The latter is scheduled for release at the end of 2003. To improve communication with industry stakeholders, a Honey Program information mailing list is being developed.

¹ All numbers in this paragraph are from 2001­02 data.

² Canada's climate precludes the presence of some OIE List B diseases, which have never been reported here.

³ In Canada, the following tissues are defined in regulation as SRM: skull, brain, trigeminal ganglia (clusters of nerve cells connected to the brain and closely apposed to the exterior of the skull), eyes, tonsils, spinal cord, and dorsal root ganglia (clusters of nerve cells connected to the spinal cord and closely apposed to the vertebral column) of cattle aged 30 months or older, and the distal ileum (part of the small intestine) of cattle of all ages. Specified risk materials, with the exception of the skull, are tissues that, in BSE-infected cattle, have been shown to contain the infective agent and transmit the disease.

⁴ Veterinary biologics include vaccines, diagnostic kits and immunoglobulin products for use in domestic livestock, poultry, companion animals and fish.

⁵ Market access for many bovine products was suspended in May 2003 following the finding of BSE in Canada.

⁶ For purposes of this report, all references to the scientific and professional community will include the following occupational groups: Agronomist (AG), Biologist (BI), Chemist (CH), Scientific Researcher (SE) and Veterinarian (VM).

⁷ For purposes of this report, all references to the scientific, professional and technical community will include the following occupational groups: Agronomist (AG), Biologist (BI), Chemist (CH), Inspector (EG), Scientific Researcher (SE) and Veterinarian (VM).

⁸ Groups found to be critical to the organization based on specialized skills development, availability and impact on fulfilling the Agency's mission.

⁹ National Farm Products Council figures--Per Capita Protein Consumption 2002.

¹⁰ During the year, the number of federally registered establishments may vary, as establishments close or new businesses are started.
The number of federally registered establishments in March 2003 was 771.

¹¹ Statistics Canada 2001 data.

¹² The QMP is a fish inspection and control system that describes the establishment's system of standards, controls, procedures, inspections and records, for the purpose of verifying and documenting the processing of fish, and the safety and quality of fish processed in and exported from Canada. There are three basic control components to a QMP: the Prerequisite Plan, the Regulatory Action Point (RAP) Plan, and the HACCP (Hazard Analysis Critical Control Point) Plan.

¹³ Where the acceptability of fish products is brought into question through the identification of a non-conformity during a CV, and the establishment cannot resolve the problem as part of a Corrective Action Plan, inspectors take appropriate action. Detention or seizure may be necessary to control fish products that are tainted, decomposed or unwholesome, fraudulently presented or otherwise fail to meet the requirements of the Fish Inspection Act, Fish Inspection Regulations or other legislation.

¹⁴ See below for more information on the PMF.

¹⁵ According to the International Organization for Standardization, ISO is derived from the Greek word isos, meaning equal; therefore in all countries and languages the acronym for the organization is ISO.

¹⁶ For sensory, chemical indicator, package integrity and net content analyses, the CFIA has adopted the FAO (Food and Agriculture Organisation of the United Nations)/WHO (World Health Organisation) Codex Alimentarius Sampling Plans for pre-packaged foods. The sampling plan for container integrity analysis was adopted from the Visual Inspection Protocol developed by Fisheries and Oceans Canada, Agriculture and Agri-Food Canada, and Health Canada. The sampling plan for microbiology and chemistry was adopted from the International Commission on Microbiological Specifications for Foods.

¹⁷ Consumption figures from Agriculture and Agri-Food Canada Market Industry & Services Branch, 2001-2002 Canadian Fruit Situation and Trends; Canadian Vegetable Situation and Trends; Canadian Potato Situation and Trends.

¹⁸ Including cocoa, chocolate products and confectionary; coffee and tea; spices, dressings, salt and seasonings; fats and oils; packaged water and ice; bakery products, grains, cereal; sweetening agents; infant foods; nut and nut products; desserts; frozen prepared meals; snack foods; sports nutrition products; soft drinks; etc.

¹⁹ Canadian Dairy Industry Profile: 2002, Agriculture and Agri-Food Canada. Consumption figures shown are for the 2001-02 fiscal year.

²⁰ The number of establishments may vary as establishments close and new businesses open.