Fact Sheet for Small Food Processors

The following lists programs and services of interest to anyone involved in the small food processing business in Saskatchewan. Also included are topics such as interesting facts , tips, sector contacts, Web sites and books on the subject of food processing. Although many of your questions will be answered in this document, this list is, by no means, exhaustive and is revised as new information is acquired.

Further assistance can be obtained by calling the numbers listed under the program descriptions; by visiting the Web sites in this document; by calling the Canada-Saskatchewan Business Service Centre (CSBSC) and speaking with one of our Information Officers; by visiting the CSBSC office in person; or by visiting the CSBSC Web site Canada-Saskatchewan Business Service Centre .

Summary

1. Food and Beverage Processing Industry Facts
2. Opportunities in Saskatchewan
3. Tips for Small Food Processors
4. Regulations
5. Labelling
6. Packaging
7. Food Safety
8. Financing
9. Associations and Contacts
10. Education and Training
11. Recommended Web sites
12. Recommended Books in our On-site Library
13. Other Information

1. Food and Beverage Processing Industry Facts

• Saskatchewan's $2-billion food and beverage processing industry has approximately 265 processors and more than 7,000 employees.

• Food processing is one of Saskatchewan's largest manufacturing industries, accounting for more than 20 per cent of the province's total manufacturing/processing output.

• Saskatchewan-made foods and beverages are sold within the province, across Canada and around the world. Exports account for an ever-increasing share of food industry sales.

• A wide variety of traditional food products are manufactured in Saskatchewan including:
  Flour products and bakery mixes
  Edible oils
  Beef, pork and chicken products
  Specialty livestock products
  Dairy products
  Jams, jellies and other preserves
  Prepared salads
  Organic foods
  Specialty food, snack foods and confections
  Nutraceuticals and functional food
  Animal feeds

The Canadian food processing industry profile provides a brief introduction and overview of the industry and it's trends and offers some comparisons of the Canadian food processing industry in relation to the industry in the other G-7 countries. For more information visit the Statistics Canada Web site  Industry profile .

2. Opportunities in Saskatchewan

There are many opportunities for new or expanded activity in Saskatchewan's food processing industry, including:

• Meat processing and slaughtering :
  Beef, pork and chicken processing
  Specialty livestock processing
• Animal feeds:
  Commercial pre-mixes, ingredients, bean/pea protein, processed forages
• Flour milling and bakery products:
  Wheat and durum wheat flours
  Specialty bakery products
• Oilseed processing:
  Edible oils from canola
• Pulse crop products:
  Secondary processing (splitting, sorting, processing)
  Packaged products from processing pulse crops
• Fruit products:
  Wines, jams, pie fillings, syrups
• Organic foods:
  Organic products from grains and livestock
• Nutraceuticals and functional foods:
  Herb/spice-based products
  Dietary supplements and medicinal herbs

Source: Saskatchewan Industry and Resources,  Regulatory Requirements for Starting a Business  (Click on Sask Facts/Sask Strengths/Food & Beverage Processing)

3. Tips for Small Food Processors

• Monitor the use of all supplies and ingredients. Record incidents of spillage, spoilage and leakage during production.
• Train staff to make products according to strict weight specifications: overweight products result in losses. Calculate how much to charge per 25 grams.
• Train staff to conserve packaging and to open one unit at a time as needed. Calculate the costs of each pre-package unit and the packaging itself.
• Permit staff to taste product as a training aid but do not allow constant nibbling.
• Test order-taking. Each month ask someone unknown to staff to place an order.
• Remove all products from shelves after expiry dates. Monitor stock rotation.
• Establish procedures for managing all areas of the business. This includes recording monthly inventory and filling out purchase orders/receiving records.

4. Regulations

Food manufacturers and processors are subject to similar food safety requirements as restaurants, however an operating permit is not required.  A food processor must comply with federal, provincial and municipal regulations that cover every aspect of food processing from initial plant design to the packaged and labelled product.

Food manufacturers and processors must comply with regulations concerning garbage disposal and are subject to inspection of food supplies. Other regulations, authorized by the Health Act, pertain to the hygiene of food handlers, ventilation, lighting, storage, cleaning, disinfection and water supplies. Construction and alterations to food manufacturing facilities or food processing plants require prior approval of plans and specifications by the local health authority.
 
Environmental Health Officers, operating from local public health unit offices, inspect public places, particularly restaurants, public swimming pools and sewage disposal systems, to prevent the spread of disease and correct health hazards through instruction and enforcement. Inspectors investigate environment-related communicable diseases to determine their cause and prevent future occurrences.

Inspectors also advise on matters pertaining to water supply and testing, sewage disposal, garbage disposal and other environmental issues. They also respond to disasters and emergencies affecting public health

Contact your nearest public health inspector. For a complete list of the offices in Saskatchewan, see the document  Saskatchewan Public Health Inspection Offices .

The Canadian Food Inspection Agency (CFIA) is the federal agency that was created to streamline and simplify the administration and enforcement of food production and food processing regulations. CFIA handles all inspection services related to food safety, economic fraud, trade-related requirements, and animal and plant health programs. The agency also enforces the food related portions of the Food and Drugs Act and the Consumer Packaging and Labelling Act. Contact them at (306) 975-8904 in Saskatoon or (306) 780-5033 in Regina or toll free 1-800-442-2342 (automated service). Web site:  Canadian Food Inspection Agency

For more information on food regulations see the document  Food .

You can find information on the  Food Program by visiting Health Canada's Web site.

The Animal Products Act and Regulations was established with respect to the production, manufacture, sale, purchase, transport and inspection of animals and animal products. The On-Farm Quality Assurance Programs Act is in place to establish the development or adoption, and delivery of recognized on-farm quality assurance programs by producer organizations and their licensed delivery agents, to producers of agricultural products. Both Acts are monitored by  Saskatchewan Agriculture and Food . Contact them at (306) 787-5140 or visit their Web site.

The Saskatchewan Environment and Resource Management (SERM) department manages the Fisheries Act and Regulations, which is in place to ensure the quality of fish for human consumption and the transport, processing and marketing of fish. SERM has five regional offices in Saskatchewan, check the Saskatchewan blue pages in your phone book for the office near you or search their Environment  Web site.

Each municipality in Saskatchewan will have its own bylaws with respect to sewer or waste management, zoning, building standards, noise, odour and dust control, fire prevention and licensing. Contact your Municipality office.

5. Labelling

The label is one of the most important considerations when developing a food product. It is how consumers identify your brand from the rest on the shelf. It will also become an important part of your marketing plan.

When designing a label you should consider the following:

• Function - a primary label will have the required regulatory information and ingredients listed. It could also include other design elements used for marketing the product.
• A secondary label will include information that is not essential or required by law.
• Promotional and security labels can also be applied to the product.
• Application - removability, application surface, application temperature, storage and display of product, shape of surface to be labelled, exposure to moisture, application method, time of application and recyclability.
• Label construction - glue, inserts, pressure sensitive, or expanded content

Source:  Saskatchewan Food Industry Development Centre Inc.  

Some of the basic labelling requirements for pre-packaged foods would include:

• All of the information on food labels must be true, not misleading or deceptive.
• All pre-packaged food products require a label. Some exceptions may apply.
• All mandatory information on food labels must be shown in both French and English. Some exceptions may apply.
• The common name must be shown on the principal display panel of the food label in both French and English.
• pre-packaged products must have a net quantity declaration in metric units, in both French and English. Some exceptions may apply.
• The name and address of the responsible party by or for whom a pre-packaged product is manufactured or produced, must be declared on any label panel in either French or English.
• When a product packaged for sale to consumers has been wholly produced or manufactured outside of Canada and the label carries the name and address of a Canadian dealer, the terms "imported by/importé par" or "imported for/importé pour" must precede this address, unless:

- the geographic origin of the product; or
- the name and address of the foreign manufacturer is placed immediately adjacent to the Canadian name and address.

• pre-packaged multi-ingredient foods require an ingredient list. Some exceptions may apply.
• Information on artificial flavours must appear on the food label (on the vignette or close to it) in both French and English, when an illustration suggests the presence of a natural substance.
• A durable life date is required, in both French and English, on pre-packaged foods with a durable life of 90 days or less i.e. Best before/Meilleur avant: JL 24 (for the 24th of July). Some exceptions may apply.
• Container sizes are standardized for certain foods pre-packaged for sale to consumers, i.e. wine, peanut butter, glucose syrups.

For additional information see the document  Food Labelling , the document  Labelling Fact Sheet, or the document  Fair Labelling Practices Program. You can also contact the Canadian Food Inspection Agency (CFIA) (306) 975-8904 in Saskatoon,  (306) 780-5033 in Regina  toll free 1-800-442-2342 (automated service) or you may visit their Web site for  Labelling / Retail Food information or for the  Food Safety Labelling section.

For detailed information on Canadian labelling and advertising requirements, policies and guidelines visit CFIA's Web site  Guide to Food Labelling and Advertising

The Saskatchewan Made Program registers individuals and companies that are manufacturing products with over 50 percent Saskatchewan content. Saskatchewan Made tags and labels are supplied to all approved registered individuals and companies upon request. For more information contact the Competitiveness Branch of Saskatchewan Industry and Resources in Regina (306) 787-4707 or see the document  Saskatchewan Made Program .

6. Packaging

Packaging of a food product has three main functions:

1. to protect and maintain product quality.
2. for display of mandatory regulatory and consumer information.
3. it can be used as a marketing tool.

The characteristics of an effective package will be influenced by the product formulation. The packaging must:

• Be compatible with the product - Will the packaging components contaminate or colour the product? Is the packaging penetrable by gases or odours? Is it sanitary? Are the ingredients compatible with the packaging?
• Offer physical protection - protect the product from dust, insects and rodents, micro organisms, chemicals, moisture, dehydration, oxygen, light, heat, cold and freezing, transportation and handling, and consumer abuse.
• Be available and affordable - Is it available in the form you want? Can it be shaped into the form you want? Can the desired colours be used? What is the cost of the materials? Is the source reliable? Is there a minimum quantity order required?
• Be compatible with the manufacturing process - Does the material limit the use of technologies? Will the material require high labour input or expensive or specialized equipment? Does the packaging limit the amount of labelling or graphics? Can the material be re-used? Is there allowance for automation of the packaging and handling process?
• Fit the image of the product - Does the packaging enhance marketing of the product?

Source:  Saskatchewan Food Industry Development Centre Inc.  

Packaging Association of Canada (PAC) is a trade association representing both users and suppliers on the strength of environmental and economic policy. For more information contact them in Toronto (416) 490-7860 at or visit their Web site.

The Canada-Saskatchewan Business Service Centre carries the monthly magazine "Canadian Packaging" in our library - Shelf location: Sector Packaging .001S. There is an annual Buyer’s Guide included. Contact our office for more information.

Universal Product Code (UPC) - Bar Codes

The Electronic Commerce Council of Canada (ECCC) is mandated to distribute and maintain the Universal Product Code (UPC) system in Canada. This system of product identification provides manufacturers, retailers and distributors with a management and information tool to uniquely identify products and logistical units throughout the supply chain.

For more information contact the  GS1 Canada toll free at 1-800-567-7084 , visit their Web site or see the document  Bar Codes .

7. Food Safety

Food Safety Enhancement Program
The Food Safety Enhancement Program encourages the development, implementation and maintenance of Hazard Analysis Critical Control Points (HACCP) based systems in all federally registered processing establishments and shell egg grading stations for which CFIA monitoring and verification programs have been established.

Food Safety Enhancement Program  (FSEP) Manual has been prepared as an aid to industry's management and employees and is destined for use during the implementation phases of FSEP. The manuals are available free of charge from the following Web site.

For more information contact (306) 975-8904 in Saskatoon,  (306) 780-5033 in Regina or toll free 1-800-442-2342 (automated service), see the document  Food Safety Enhancement Program .

For detailed information on  Food Safety , visit CFIA's Web site.
For information of specific food processing topics see the following CFIA programs listed below:

Meat Hygiene Program
Dairy Inspection Program
Processed Products Program
Fresh Fruit and Vegetable Program
Egg Inspection Program
Fish Seafood and Production Program
Honey Inspection Program

8. Financing

A list of  Financing Programs   is always available on our Web site and the information is updated regularly.

The Saskatchewan Food Industry Development Centre lists funding programs available for this industry on the  Information Services - Food Centre  Web site.

To view a document titled  Sources of Government Funding for New and Expanding Agri-Businesses  visit Saskatchewan Agriculture and Food Web site.

9. Associations and Contacts

Food Centre
The Saskatchewan Food Industry Development Centre's mission is to assist in the development and continued growth of a dynamic food processing sector by providing an extensive understanding of markets and support mechanisms for technology and human resource development. The Food Centre has been established as a partnership with Saskatchewan Agriculture and Food, the University of Saskatchewan and the Saskatchewan Food Processors Association. The Food Centre will be with you from the planning stages through to the packaged and labelled product that is ready for test marketing. The Food Centre is also an interim processing facility for small-to-medium processors.

There is no charge for the initial consultation to establish your expectations and the Food Centre's responsibilities. For additional information contact them at (306) 933-7555 in Saskatoon, visit the Web site  Saskatchewan Food Industry Development Centre Inc.  or see the document  Food Centre .

Saskatchewan Food Processors Association
The Saskatchewan Food Processors Association (SFPA) was formed in 1990 as a non-profit organization designed to strengthen the food processing industry in Saskatchewan. For further information contact them in Saskatoon at (306) 683-2410 , visit their Web site  Saskatchewan Food Processors Association  or see the document  Saskatchewan Food Processors Association .

Food Beverage Canada
Food Beverage Canada (FBC) is an industry association committed to the development of export strategies and programs that will strengthen and increase its members' share of global food and beverage markets. For information about their programs and activities visit their Web site  Food Beverage Canada  or see the document  Food Beverage Canada .

National Association for the Specialty Food Trade, Inc. (NASFT)
Note this is a United States Association. "The National Association for the Specialty Food Trade is a non-profit business trade association established in 1952 to foster trade, commerce and interest in the specialty food industry. It is a national organization composed of domestic and foreign manufacturers, importers, distributors, brokers, and related publications. It is the only U.S. Organization working full-time solely to further interest in specialty foods. The NASFT currently has more than 2,000 member companies throughout the U.S. and overseas." For more information visit their Web site  Specialty Food Market  .

10. Education and Training

FoodSTEPS - This course is now offered at the Food Centre Processing Foods Safely (PFS) is part of a series of programs from FoodSTEPS (TM). It is the first training course designed specifically to help small and medium-size food processors address their responsibilities for the safety and quality of food products. The program can also become part of your company’s employee training requirements for the Hazard Analysis Critical Control Point (HACCP) system. PFS gives you and your employees the information you need regarding. To learn more about Processing Foods Safely or FoodSTEPS please contact the Food Centre by e-mail at info@foodcentre.sk.ca , call (306) 933-7555 in Saskatoon, or visit their Web site  Saskatchewan Food Industry Development Centre Inc.  .

Saskatchewan Institute Of Applied Science and Technology (SIAST) offers Food and Nutrition Management Courses including Food Safety Courses. For a list of campuses in Saskatchewan see the document  Saskatchewan Institute Of Applied Science and Technology - SIAST  or for additional information visit their Web site at http://www.goSIAST.com

Product Formulation/Testing
The formulation of the product you make in your kitchen and the same product for sale to the public may be different. Such things as ingredient amounts, cooking time or method, and the quality of the finished product may change when your batch size is increased to a production level. You will need to standardize your recipe to maintain your quality standards, comply with safety regulations and stay within your production budget.

Source: Saskatchewan Food Industry Development Centre Inc.  

11. Recommended Web Sites

• Visit our Web site for information by sector (i.e., food sector) http://www.cbsc.org/sask/links.cfm#sectors

• The links section of Saskatchewan Food Industry Development Centre offers a number of Web sites of interest to the industry  Links - Food Centre

• America’s Food and Beverage Trade Directory
  The Americas Food and Beverage Trade Directory contains information on more than 41,000 companies in the Western Hemisphere which produce, distribute, import, export, or purchase food and beverage products. Visit their Web site  World Trade Center Miami  

• Buyers’ Guide Online Directory
  Your resource tool for suppliers across Canada -  Food in Canada  

• Food Ingredients Online
  "Virtual community for the food industry. Daily news and product updates for professionals in the food Industry- Information on manufacturing, technology, equipment, supplies, and discussion forums, online chat, newsletter and software." U.S. Web site http://www.foodingredientsonline.com

• News reports on food processing
  This quarterly newsletter highlights some of the issues, new developments and activities in the food processing industry;  Saskatchewan Agriculture and Food  Click on "Reports", then "Food News".

• Statistics Canada
  Canada Food Stats, available on CD Rom (Cat. No. 23F0001XCB);  Canada Food Stats (CFS)   - includes free food consumption highlights and tables.

• Guide to Food Labelling and Advertising

• Saskatchewan Agriculture and Food
  Saskatchewan Agriculture and Food   Under "Site Categories" click on "Processing".

• Hubert Source Book 
   Over 2300 new products are listed in this catalogue, check out the  Hubert Company  Web site.

12. Recommended Books in our On-site Library

The Canada-Saskatchewan Business Service Centre resource library has a large number of publications and reference material which includes the following:

• Food Processor’s Reference Manual - 1994, Shelf location: Sector Food Processing .008S
• Business Plans Handbook - Volume 3 and 6, Shelf location: BUSINESS BUSINESS PLAN .020S
  A compilation of actual business plans developed by small business throughout North America, including Food Processors. Each of these real business plans represents an owner’s successful attempt at clarifying the reasons that the business should exist or expand and why a lender should provide funding.
• Hubert Source Book 2003 - 2003, Shelf location: Sector Food.035S
  Over 2300 new products are listed in this catalogue. View the web site and order on-line at  Hubert Company  or call 1-800-543-7374.

Visit our Web site to search for specific books on the subject of your choice: http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_SK%2FCBSC_WebPage%2FCBSC_WebPage_Temp&submenu2;=Library⟨=eng&cid;=1107778684810&c;=CBSC_WebPage Once you have located a particular resource you think might be useful, please contact us at the CSBSC office and we will discuss the material with you.

13. Other Information

• Business Plan For Small Manufacturers
• Critical Assessment Factors For New Products
• Finding and Selecting Wholesalers

Links to other Info-Guides:

Business Start-up Info-Guide

Aboriginal Info-Guide

Employment and Training Info-Guide

Exporting Info-Guide

Importing Info-Guide

Taxation Info-Guide

E-Business Info-Guide

Canada-Saskatchewan Business Service Centre
#2 - 345 3rd Avenue South
Saskatoon, Saskatchewan
S7K 1M6
Phone: (306) 956-2323
Toll-Free: 1-800-667-4374
E-mail: saskatooncsbsc@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/sask

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