Canada Gazette

The Canada Agricultural Products Act provides the authority for the Governor in Council to make regulations establishing grades, standards and legends for agricultural products. Pursuant to this Act, the Livestock and Poultry Carcass Grading Regulations (the Regulations) specify the national grade standards for livestock and poultry carcasses graded in Canada. The grading program and the Regulations facilitate trade and marketing by establishing a basis for the determination of meat quality and yield. The Canadian bison quality grade standards are being updated on the basis of research results, and the veal standards are being modified to ensure harmonization with the Meat Inspection Regulations, 1990 and to enable all veal carcasses to be graded. Livestock carcass grading in Canada is voluntary. Grading is not required for import or export purposes and there are no technical trade barriers.

Generally, livestock (including bison) are graded for four main reasons: to facilitate trade, to provide added-value for producers, to offer consumers meat of a common quality standard, and to facilitate herd improvement.

A carcass may only be graded after it has been inspected and approved for health and safety standards and bears a federal or provincial meat inspection legend or stamp. A certified grader assesses a carcass based on several criteria influencing either carcass quality or yield.

The current Canadian bison grading system was developed by the bison industry in the early 1990s. It was based primarily on the beef grading system, utilizing many of the same grade factors but taking into account inherent differences between the species. Official bison carcass grading standards were introduced into the Regulations and implemented in 1995.

The current bison carcass grading regulations were developed at a time when bulls comprised a majority of the animals slaughtered. Heifers are now slaughtered routinely for meat but, because of their inherent slower growth rate, it takes a longer period of time to reach market weight. As a result, the carcasses are older and many are downgraded to the Canada C1 and C2 grades because of their age.

In collaboration with the Canadian Bison Association (CBA) and other parties, the Lacombe Research Centre of Agriculture and Agri-Food Canada (AAFC) designed and conducted a research project to examine the effectiveness of the current bison grading system. The research project was specifically designed to determine the meat quality and palatability attributes of bison meat derived from intermediate-aged Canada C grade bison carcasses in comparison to the quality of meat derived from Canada A grades. Canada C grade carcasses demonstrate more advanced maturity than permitted in the Canada A grades but would otherwise qualify for the Canada A grades.

The Lacombe study demonstrated that the meat quality and palatability of these carcasses is not significantly different from the meat that was classified in the Canada A grades.

Based on the results of the study, the following regulatory amendments are proposed:

(i) increase the minimum fat requirement for the Canada A1 grade from 1 to 2 mm;

(ii) set a maximum fat level of 18 mm for the Canada A3 grade, and establish a new Canada A4 grade for carcasses with more than 18 mm of fat at the measurement site;

(iii) eliminate the Canada C1 and Canada C2 grades for intermediate-aged carcasses and extend the maturity requirements for the youthful Canada A grades to include the former intermediate age standards;

(iv) adjust the fat level for a Canada B1 carcass from less than 1 mm to less than 2 mm;

(v) establish a Canada B3 grade for a youthful carcass with deficient muscling; and

(vi) change the fat levels for the mature bison carcasses graded in the Canada D1 or Canada D2 grade, as well as establish a new Canada D3 grade for a mature carcass that is deficient in muscling.

These changes are proposed based on new scientific information to better recognize the quality and value of bison meat and to allow more diversity in the export market while not jeopardizing the quality, nutrition and safety of bison meat. These are technical changes that will not pose any health, safety or social risks.

The proposed regulatory amendment will remove the current option to weigh or grade veal carcasses with their hide on. For sanitary purposes, a similar amendment was made to the Meat Inspection Regulations, 1990 (SOR/2005-253) in 2005, and the amendment to these Regulations will ensure harmonization between the two regulations. Veal carcasses must have their hide removed.

Presently, veal with the hide off weighing over 160 kg cannot be graded despite the fact that a carcass can be considered as veal up to 180 kg. These amendments will increase the maximum weight for the grading of veal with hide off from 160 kg to 180 kg to ensure that all veal carcasses are also eligible for grading on the basis of the veal carcass grade standards. The minimum weight for the grading of a beef carcass is also increased to 180 kg to ensure consistency in the distinction between beef and veal. A youthful bovine carcass up to 180 kg will be considered to be veal and, over 180 kg, to be beef. The maximum weight for a carcass veal with hide off to be considered as veal remains at 180 kg.

This is not an option favoured by the stakeholders, as they believe that the regulatory change would better recognize the quality and value of bison carcasses and, in particular, heifer carcasses.

The proposed modification fine-tunes the current standards on the basis of objective research and could lead to increased revenues for bison producers. This amendment may allow more bison product to be eligible for the export market.

Furthermore, by changing the existing regulation, the industry recognizes the credibility of the Canadian bison carcass grading system and promotes harmonization in the quality of bison meat offered to consumers. Since bison carcass grading is voluntary, the fact that industry wishes to update the grade standards reflects their commitment to grading and its potential value to producers.

This is not an option for the Canadian Food Inspection Agency (CFIA) since there is a need to harmonize veal hide removal between the Meat Inspection Regulations, 1990 and the Livestock and Poultry Carcass Grading Regulations.

Through uniform and accurate application of the grading regulations, grading plays a key role in the orderly marketing of red meat and in the fair and equitable distribution of monies in the system. Since it has been estimated that a 1% change in grading accuracy can result in a $15 million shift in dollar allocations between packers and producers, grading accuracy is of paramount importance to both producers and packers.

According to the Canadian Bison Association (CBA), the resulting benefits of the proposed regulatory change will be significant. Although it is difficult to measure the benefits of such a change, it is estimated that the value of heifer carcasses and a small number of bison bull carcasses could increase by 15–20%. This could result in an increased value of $100 to $150 per heifer carcass and at least that amount for an estimated 10% of the bull carcasses. This could result in $1–$2 million in additional income from the market to producers. Producer input costs will not increase due to the amendment; however, extra value will be created due to carcasses formerly downgraded to the Canada C grades being eligible for the Canada A grade series.

The European Union (EU) has established a tariff quota for fresh, chilled and frozen beef of 11 500 tonnes product weight for meat meeting certain criteria. Bovine meat graded "Canada A," "Canada AA," "Canada AAA," "Canada Choice" and "Canada Prime," as well as bison meat graded "Canada A1," "Canada A2" and "Canada A3," correspond to this definition. This amendment could result in more bison meat being eligible to be exported to the EU, as more bison meat is expected to be graded Canada A1, A2 or A3. However, there were only approximately 1 100 tonnes of Canadian bison meat exported to the EU in 2005.

There will be no supplementary resource burden on the CFIA. The bison carcass grading service is delivered by the Canadian Beef Grading Agency.

Consumers will benefit, since the proposed amendment will provide a better evaluation of bison meat quality.

Essentially all veal production occurs in Quebec and Ontario, with Quebec having the largest market share between the two provinces. There is little veal grading in Ontario. In Quebec, veal grading is promoted by the Fédération des producteurs de bovins du Québec as a means to ensure the quality and standardization of grain-fed veal calves. Quebec grain-fed veal producers are paid on the basis of the grade for their calves. In 2005, approximately 93 000 grain-fed veal calves were marketed in Quebec, of which 33 000 were not eligible for grading because of the current maximum veal carcass grading weight. As a result of the proposed amendment, these calves would be eligible for grading. Discounts apply to producers for calves that do not grade A1/A2 in order to provide the appropriate market signals to encourage the production of quality grain-fed veal. Typical discounts may range from $0.03 per pound for the Canada A3 grade to $0.20–$0.40 per pound for the Canada B and C grades.

The availability of graded grain-fed veal is also of benefit to retailers interested in advertising this type of product. Although retailers may not necessarily purchase only on the basis of grade, this factor may be one of their purchase specifications in order to promote the quality of their veal products available for sale.

Consumers will benefit, since the proposed amendment will enable more veal carcasses to be eligible for grading and help promote standardized veal meat quality.

There will be no supplementary resource burden on the CFIA. The veal carcass grading service is delivered by the Canadian Beef Grading Agency.

This amendment is not expected to lead to a significant change in production. This regulatory amendment would only change the grading standards.

No environmental impacts are therefore anticipated from this proposed regulatory modification.

The provinces and territories were consulted on both the bison and veal amendments. A sole request for clarification on the proposals was received. Further consultations on the individual amendments are as follows.

Officials from the province of Alberta and the Lacombe Research Station co-operated in the research leading to the recommendations for regulatory amendments. The province of Alberta participated actively in the development and funding of the research project, given the size of its bison population. The completed research was shared with CBA Board members, commercial bison meat marketers and representatives of a federal and a provincial slaughter facility.

The Canadian Beef Grading Agency (CBGA), a private, non-profit corporation, was consulted throughout the research project and endorses the proposed regulatory amendment. The CBGA is responsible for providing the bison carcass grading service in federally or provincially registered meat establishments that request the service.

In addition, the CBA consulted with a number of producers, some of whom were involved in the development of the original grading system. Also consulted were bison feeders and producers who raise grass-fed bison. The CBA strongly supports this initiative.

Consultations occurred with the Alberta provincial government due to the large proportion of the national herd in Alberta. No provincial bison grading standards exist in any province. No consultation occurred with the United States, since they do not have bison carcass grading standards or a bison carcass grading system. These amendments are considered minor, with no impact on the provinces or the United States.

Essentially, all veal carcass grading occurs in Quebec, where veal grading plays a role in both producer payment and the subsequent marketing of veal to the retail level. The Fédération des producteurs de bovins du Québec represents Quebec veal producers and is a strong supporter of the change in weights to ensure that all veal carcasses are eligible for grading. They also support the harmonization between the Meat Inspection Regulations, 1990 and the Livestock and Poultry Carcass Grading Regulations for hide removal on veal carcasses.

The livestock grading program has a significant and direct impact on the Canadian meat industry. Despite the fact that the program is voluntary, it is a central element in the structure of the Canadian livestock marketing system because it establishes a commonly understood basis for trade. This is provided, in part, through grade standards which reflect the product characteristics valued in the marketplace. Since these standards serve as a basis for payment or prices, they have a double effect: they motivate production and preservation of high quality products and they contribute to an orderly marketing system for goods. In addition to the voluntary nature of the program, compliance is promoted by the fact that delivery of the beef, bison and veal grading services is the responsibility of the Canadian Beef Grading Agency. The CBGA has been accredited by the CFIA and is subject to CFIA audit.

The grading system is voluntary. However, in order to be graded, the carcass would need to meet the requirements of the Regulations. Although meat grading is not usually a condition for importing or exporting meat products, some countries importing Canadian beef and bison may require that the carcasses be certified as meeting certain grade standards.

Training of bison carcass graders is provided by the CBGA; the CFIA regularly audits the accuracy and performance of CBGA graders. The audit frequency is determined by slaughter volume. It could range from 1 to 12 times per year.

The CBGA will be the organization involved in the grading of the carcasses. Therefore, no supplementary staff from CFIA is required.

Supplementary human resources are not required to enforce the proposed amendment.

Eric Aubin, Chief, Livestock Identification and Legislation, Food of Animal Origin Division, Canadian Food Inspection Agency, 159 Cleopatra Drive, Nepean, Ontario K1A 0Y9, 613-221-7103 (telephone), 613-228-6636 (fax), aubine@inspection. gc.ca (email).

Notice is hereby given that the Governor in Council, pursuant to section 32 (see footnote a) of the Canada Agricultural Products Act, (see footnote b) proposes to make the annexed Regulations Amending the Livestock and Poultry Carcass Grading Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Eric Aubin, Chief, Livestock Identification and Legislation, Food of Animal Origin Division, Canadian Food Inspection Agency, 159 Cleopatra Drive, Ottawa, Ontario K1A 0Y9 (tel.: 613-221-7103; fax: 613-228-6636).

1. (1) The definition "veal" in section 2 of the Livestock and Poultry Carcass Grading Regulations (see footnote 1) is replaced by the following:

"veal" means the meat of a bovine animal with the hide off that has the maturity characteristics set out in Schedule I to Part IV and a maximum carcass weight of 180 kg; (veau)

(2) Paragraph (a) of the definition "beef" in section 2 of the Regulations is replaced by the following:

(a) in the case of a carcass with the maturity characteristics set out in Schedule I to Part III, a carcass weight of more than 180 kg, and

(3) The definition "veal carcass" in section 2 of the Regulations is amended by striking out the word "and" at the end of paragraph (e), by replacing the reference to "(carcasse de veau)" at the end of paragraph (f) with the word "and" and by adding the following after paragraph (f):

8. A grader who grades a veal carcass shall mark the veal carcass with a grade stamp, in red ink, on the primal cuts on both sides of the veal carcass.

3. Paragraphs 42(a) and (b) of the Regulations are replaced by the following:

4. Paragraphs 43(1)(a) and (b) of the Regulations are replaced by the following:

5. Paragraphs 44(a) and (b) of the Regulations are replaced by the following:

48. There shall be 10 grades of bison carcasses with the grade names Canada A1, Canada A2, Canada A3, Canada A4, Canada B1, Canada B2, Canada B3, Canada D1, Canada D2 and Canada D3.

7. The heading before section 50 of the Regulations is replaced by the following:

8. (1) The portion of section 50 of the Regulations before paragraph (a) is replaced by the following:

50. The standards for a bison carcass of the grade Canada A1, Canada A2, Canada A3 or Canada A4 are the following:

(2) Subparagraphs 50(e)(i) to (iii) of the Regulations are replaced by the following:

(i) ranges from 2 mm to 6 mm, in the case of the grade Canada A1,

(ii) ranges from 7 mm to 12 mm, in the case of the grade Canada A2,

(iii) ranges from 13 mm to 18 mm, in the case of the grade Canada A3, or

(iv) is greater than 18 mm, in the case of the grade Canada A4.

11. Section 53 of the Regulations and the heading before it are replaced by the following:

53. The standards for a bison carcass of the grade Canada B3 are the following:

54. The standards for a bison carcass of the grade Canada D1 or Canada D2 are the following:

(i) ranges from 2 to 6 mm, in the case of the grade Canada D1, or

(ii) is greater than 6 mm, in the case of the grade Canada D2.

54.1 The standards for a bison carcass of the grade Canada D3 are the following:

(i) is less than 2 mm, in the case of a carcass with medium to excellent muscling, or

(ii) has no maximum, in the case of a carcass with less than medium muscling.

1. Cartilaginous caps on the 9th, 10th and 11th thoracic vertebrae immediately anterior to the knife rib site that are no more than 80 per cent ossified.

15. Schedule III to Part VI of the Regulations is amended by replacing the reference "(Section 54)" after the heading "SCHEDULE III" with the reference "(Sections 54 and 54.1)".

16. These Regulations come into force on the day on which they are registered.