Regulation - Minister

Proposed regulatory amendments to Regulation 761: Milk and Milk Products and Regulation 753: Grades, Standards, Designations, Classes, Packing and Marking under the Milk Act.

Regulation Number(s):
Regulation 761
Regulation 753
O. Reg 143/98
O. Reg 121/98
Instrument Type:
Regulation - Minister
Bill or Act:
Milk Act
Summary of Decision:
As part of the Ontario government's Open for Business Action Plan, the Ontario Farm Products Marketing Commission (Commission) amended Regulation 761: Milk and Milk Products and Regulation 753: Grades, Standards, Designations, Classes, Packing and Marking under the Milk Act to help reduce burden and costs for dairy processors and to stimulate economic growth in the sector while maintaining strong health and safety standards.

The amendments include:
•Eliminating fees for licences and certificates
•Allowing use of electronic records (removing requirement to keep records for goat milk in ink)
•Removing requirements to pasteurize ice cream mixes made from pasteurized ingredients
•Removing requirement for milk grader certificates to be conspicuously displayed at a plant, and instead require grader to provide upon request
•Removing prescriptive requirements for butter and raw milk storage
•Clarifying when a permit is required to alter a dairy processing plant
•Moving toward outcome-based provisions for wash basins
•Removing references to farm-separated cream and related terms where appropriate
•Updating references to federal legislation to standards in the Safe Foods for Canadians Regulations (SFCR) and the Canadian Grade Compendium

To implement the proposed amendments, minor consequential regulatory amendments were made to O. Reg. 143/98 by the Commission and to O. Reg. 121/98 by the Minister of Agriculture, Food and Rural Affairs.
Analysis of Regulatory Impact:
The amendments provided burden reduction and cost savings for existing and future dairy processors while maintaining strong food safety and quality for milk and milk products.

While all the amendments will clarify the regulations and reduce burden for the industry, the following are the amendments that can be associated with a direct reduction in costs:

1.Eliminating fees for licences to operate provincial dairy plants.
2.Eliminating fees for licences to operate as a non-shopkeeper distributor (distributor of fluid milk products) under the Milk Act.
3.Removing the requirement to pasteurize ice cream mixes made from pre-pasteurized ingredients.
4.Clarifying what types of alterations to an existing dairy plant require prior approval and the issuance of a permit.

The estimated total average annual present value cost savings over the next 10 years from the proposed changes is $147,100 annually for a total present value cost savings of approximately $1.47 million after 10 years.

Each of the costs savings were calculated with the Regulatory Cost Calculator and included the discount rate of 2.5 per cent and the inflation rate of 2 per cent.
All estimates do not include impacts from job creation or economic activity due to new entrants into the market.
Further Information:
Proposal Number:
21-OMAFRA016
Posting Date:
September 27, 2021
Summary of Proposal:
As part of the Ontario government's Open for Business Action Plan, the Ontario Farm Products Marketing Commission (Commission) is proposing amendments to Regulation 761: Milk and Milk Products and Regulation 753: Grades, Standards, Designations, Classes, Packing and Marking under the Milk Act to help reduce burden and costs for dairy processors and to stimulate economic growth in the sector while maintaining strong health and safety standards.

The following amendments are being proposed.

Fees for Licences and Certificates:
Eliminating fees for a:
• dairy plant licence
• non-shopkeeper distributor licence (distributor of fluid milk products)
• dairy Bulk Tank Milk Grader certificate
• dairy Plant Milk and Cream Grader certificate
• apprentice Bulk Tank Milk Grader certificate
• apprentice Plant Milk and Cream Grader certificate

Pre-Pasteurized Ice Cream Mixes:
Removing the requirement to pasteurize ice-cream mixes made from pre-pasteurized ingredients, provided that the end-product meets established microbiological food safety standards.

Displaying all Milk Grader Certificates upon Request at Plants:
Requiring dairy plant milk graders to provide proof of their certificate upon request.

Allowing the Use of Electronic Records related to Goat Milk:
Removing the requirement to use ink or indelible lead for goat milk records and allow for electronic records.

Butter and Milk Storage:
Removing prescriptive space requirements for butter and raw milk storage while maintaining food safety standards.

Clarifying Requirement for Permit to Alter Existing Dairy Processing Plants:
Clarifying when a permit is required from the Director under the Milk Act for alterations to a dairy processing plant in order to exempt small changes that do not impact food safety.

Moving Toward Outcome-Based Provisions for Wash Basins:
Transitioning towards an outcome-based requirement when it comes to the location of wash basins for washing hands in processing plants.

Removing References to Farm-Separated Cream and Related Terms Where Appropriate:
Amending specific provisions in Regulation 761 to reflect the current practices and context of dairy processing (e.g., removing references to farm-separated cream and cream testers as there is no longer a farm-separated cream industry in Ontario).

Federal Grades and Standards:
Updating a reference to the grades, standards, grade names, grade marks, packing, marking and labelling requirements and specifications of containers for dairy products as found in the new Safe Food for Canadians Regulations and the Canadian Grade Compendium.

Additional regulations may need to be amended as a result of the proposed changes, including Ontario Regulation 121/98 - Administration and Enforcement of Regulations in Respect of the Raw Milk and Cream Quality Program and Ontario Regulation 143/98: Fees - Administration and Enforcement of Delegated Legislation.
Contact Address:
Farm Products Marketing Commission Secretariat
1 Stone Road West, 5th Floor
Guelph, ON
N1G 4Y2
Effective Date:
February 9, 2022
Decision:
Approved