Organic, Ethnic, Fair Trade Foods Market in Canada

Organic, Ethnic, and Fair Trade Foods
Introduction.................................................................................................................................... 2
Scope of the Report ................................................................................................................. 2
The Canadian Market .................................................................................................................. 4
Imports ....................................................................................................................................... 8
Trends and Opportunities ..................................................................................................... 12
Trade Practices........................................................................................................................... 16
Competition ............................................................................................................................. 16
Trade Shows ........................................................................................................................... 17
Quality ...................................................................................................................................... 17
The Buyer ................................................................................................................................ 20
Price ......................................................................................................................................... 23
Packaging and Transportation ............................................................................................. 24
Labelling................................................................................................................................... 25
Distribution................................................................................................................................... 28
Import Regulations ..................................................................................................................... 32
Inspection ................................................................................................................................ 32
Tariff Rates .............................................................................................................................. 33
Licensing.................................................................................................................................. 34
Relevant Canadian Laws and Regulations ........................................................................ 34
Taxes........................................................................................................................................ 34
Antidumping ............................................................................................................................ 35
Tips for Exporters ....................................................................................................................... 36
Sources of Information .......................................................................................................... 38
Trade Shows ........................................................................................................................... 39
Publications ............................................................................................................................. 39
This publication has been produced by TFO Canada with funding from the Canadian International Development Agency. All information
provided in this document is based on the best available at the time of preparation and is offered without responsibility on the part of TFO
Canada. The reader is advised to check periodically with TFO Canada for updates.
This publication is distributed subject to the condition that it shall not, by way of trade or by any means, be lent, sold, hired out or otherwise
circulated in any form other than that in which it is published, including this notice. This publication shall only be made available to assist
businesses, trade support organizations, and government agencies which have their head office and operations residing in countries eligible for
international development assistance from the Canadian government. In no case may it be sold or distributed at any cost, direct or implied, nor
may it be published on a publicly accessible website or equivalent, without TFO Canadas consent.
Trade Facilitation Office Canada, 2013
Introduction
Population
Canadas population, estimated at 35.1 million inhabitants
in January 2013, is expected to reach between 40 and 47
million by 2036 according to Statistics Canada.
Although it is the second largest country in the world

in terms of land area, Canadas population density is
the lowest of all major industrialized countries, at
only 3.7 persons per square kilometer (km 2). A large
part of Canada is above the temperate zone. In this
northern part, extremely cold temperatures,
transportation challenges, and a high cost of living
affect agriculture and habitation. It is not surprising,
therefore, that population density in the Yukon, Northwest Territories, Nunavut and Northern Qubec
average less than one person per km 2. In the temperate zone, however, population density ranges from
24.7 persons per km2 in Prince Edward Island, to 1.4 persons per km 2 in Newfoundland and Labrador. In
summary, nearly 80% of Canadians live within 160 kilometers of the border with the United States (U.S.),
mainly in large urban centres throughout the central and western parts of the country. In 2011, nearly 7
Canadians in 10 were living in one of Canada's major cities, up from 6 in 2006.
Scope of the Report

In 2007, Canada became the first country in the world to track organic products moving across its border.
As of June 2013, a limited number of Certified Organic Commodity Harmonized System Import Codes
were registered to track imported organic products ranging from dairy to fruits and vegetables. This list
(shown below) is a work in progress and exporters should check for up-to-date codes through the
Canadian Food Inspection Agency (CFIA) website at: http://www4.agr.gc.ca/AAFC-AAC/displayafficher.do?id=1199997881628&lang=eng
Current List of Certified Organic Commodity Import Codes, June 2013

Chapter 4 - Dairy Products, Eggs, Natural Honey
Chapter 8 - Edible Fruit & Nuts; Citrus Fruit or Melon Peel
0403101010 Yogurt within access commitment
0803900011 Bananas, other than plantains
0403102010 Yogurt over access commitment
0804300011 Pineapples
0805100012 Oranges, except Temple
Chapter 7 - Edible Vegetables; Certain Roots and Tubers
0805400010 Grapefruit, including pomelos
0701900010 Potatoes, except seed
0805500011 Lemons
0702002910 Tomatoes, Cherry, except process
0805500012 Limes
0702009921 Tomatoes, Roma, excluding greenhouse
0806109110 Grapes, o/t species Vitis labrusca
0702009929 Tomatoes, excluding greenhouse
0807110010 Watermelons
0703103910 Onions or shallots, green
0807200010 Papaws (papayas)
0703109910 Onions
0808101081 Apples, Golden Delicious, not for processing
0704109010 Cauliflowers and headed broccoli
0808101082 Apples, Red Delicious, other than for processing
0704209010 Brussels sprouts
0808101083 Apples, Granny Smith, other than for processing
0704902910 Broccoli
0808101084 Apples, Gala, other than for processing
0704903910 Cabbage, except Chinese
0808101089 Apples, other than for processing
0704904910 Chinese cabbage or Chinese lettuce
0808302910 Pears
0705119020 Cabbage lettuce, head lettuce, excl. greenhouse
0809292910 Cherries
0705199029 Lettuce
0809302910 Peaches, excluding nectarines
0705199021 Lettuce, pack fresh salad cut mixes, <=1kg
0810109910 Strawberries, except for processing
0705199022 Lettuce, pack fresh salad cut mixes, >1kg
0810201910 Raspberries & loganberries
0706102011 Baby carrots, in pack <=1 kg each
0810401011 Cranberries
0706102012 Baby carrots, in bulk or pack, >1 kg each
0810401022 Blueberries, cultivated
0706104010 Carrots
0706903010 Beets
Chapter 9 - Coffee.Tea, Mat and Spices
0706905910 Radishes
0901110010 Coffee, not roasted, not decaffeinated
0707009920 Cucumbers & gherkins, excluding greenhouse
0901210010 Coffee, roasted, not decaffeinated
0708109910 Peas (Pisum sativum)
0902101010 Green tea, not fermented, individual serving bags
0709209910 Asparagus
0902109010 Green tea, not fermented, in packages <= 3 kg
0709300010 Eggplants, aubergines
0902200010 Green tea, not fermented, in packages > 3 kg
0709409010 Celery, other than celeriac
0902301011 Black tea, not decaf, individual serving bags
0709609020 Peppers: Capsicum or Pimenta, excl. greenhouse 0902309011 Black tea, not decaf, in pack <= 3 kg
0709700011 Spinach, NZ & orache spinach (garden), <=500g
0709700012 Spinach, NZ & orache spinach (garden), >500g
Chapter 19 - Preparations Of Cereals, Flour, Starch Or
0709700019 Spinach, New Zealand & orache spinach
Milk; Bakers' Wares
0709994010 Sweet corn-on-the-cob
1901102010 Food preparation containing >10% dry weight
basis of milk solid, infant use, retail sale
Chapter 12 - Oil Seeds And Oleaginous Fruits; Seeds And
Fruits; Medicinal Plants
Chapter 21 - Miscellaneous Edible Preparations
1211901010 Herbal tea, in bags, for individual servings
2103209091 Tomato sauces
Chapter 15 - Animal or Vegetable Fats And Oils
Chapter 22 - Beverages, Spirits And Vinegar
1509100011 Olive oil, virgin, in container sizes < 18 kg
2202904910 Milk beverages
Source: Canadian Food Inspection Agency, Certified Organic Commodity Harmonized Import Codes, 2013
The Canadian Market
Organic Foods
According to a major new report by the Canada Organic Trade Association 1 (excerpts of which are
presented here), in 2012 Canadas certified organic food market was valued at nearly $3 billion out of a
total organic market of $3.7 billion, as shown in the table below.
Estimated Value of Canadian Organic Sales in 2012
Total Canadian Organic Market
Total Organic Food & Beverage Sales (excluding alcohol)
Organic Alcohol
Organic Supplements
Organic Fibre (linen & clothing)
Organic Personal Care
Organic Pet Food
Organic Household Products
Organic Flowers
Organic Exports from Canada
Sales Value ($ million)

3,686.6
2,978.6
135.0
34.4
24.2
41.1
4.1
8.2
3.0
458.0
Market Share (%)

n/a
1.7
0.67
1.25
0.15
0.45
0.25
0.2
0.1
The traditional market for food in Canada has shifted considerably in terms of tastes, largely as a result of
more women in the workforce, immigration, an ageing population, and an increase in healthconsciousness. In general, reliance on organic and semi-prepared food has increased, the average meal
preparation time has fallen, and purchases of healthy fast foods have grown. Supporting these
observations is the fact that the value of the Canadian organic food market has tripled since 2006, far
outpacing the growth rate of other agri-food sectors. In 2006, organic products made up less than 1% of
grocery sales (excluding fresh) in mainstream retail in Canada; by 2008 this climbed to 1.3%, and in 2012
reached 1.6% nationally. Including fresh products, organic foods make up 1.7% of total food sales with
the very low market penetration of organic meats and poultry dampening total market share. British
Columbia continues to lead this trend with organic products enjoying nearly double the market share than
that seen in the rest of the country. Alberta and Ontario have the next most developed organic markets
based on mainstream retail sales.
The Canadian Organic Trade Association report noted that Canadians who buy organic groceries only
spend $17.50 more per week than those who do not purchase organic (the weekly grocery bill for an
organic shopper is about $132.70 compared to a conventional shopper who spends $115.22 per week). It
is interesting for exporters to note that most Canadians (98%) expect to increase or maintain their
spending on organic food over the next year, mainly in the fruit and vegetable, meat and poultry, dairy,
and bread and grains categories.
A diverse consumer base is driving the sector, with 58% of all Canadians buying organic products every
week. In 2012, Canadas major weekly buyers of organic groceries were found to be:
By ethnicity: 67% non-Caucasian
Canadas Organic Market: National Highlights 2013: http://www.ota.com/pics/media_photos.171.img_filename.pdf
By region: 66% British Columbians

By age: 62% 35-44 year-olds
By education: 61% university educated
By family unit: 62% families with children under two years old; and
By urban area: 63% of people in Canadas largest cities
The Canadian food industry has also changed in light of consolidation and technological developments.
Since the fastest growing market for foods in Canada is the organic and ethnic sector, a common thread
of consumer interest has been found in healthy, natural, flavourful alternatives not only for consumption
but also for the perception of being friendlier to the environment. Since Canadians are eating more
organic foods, many ethnic foods, especially Indian, Halal, Kosher, Latino and Asian, are joining the
ethnic gone organic trend, while the specialty food market shows a move towards the more flavourful
tastes of ethnic cuisine.
In 2012, dairy products, roasted-in-Canada coffee, soya
drinks, eggs, and bread were the most popular organic
food purchases, with strong competition emerging from
Canadian companies in the processed sector,
particularly for ready-to-eat cereals, baby food, juices
and drinks. The adjacent chart shows the top 10
Canadian-produced organic pre-packaged food sold in
Canada in that year in $ millions.2
For organic food products in general (Canadian and
non-Canadian producers), the beverage category
narrowly beat out dairy and eggs due to strong sales of
organic coffee, valued at half the sales of all organic beverages. Bread and ready-to-eat cereals led sales
in the bread and grains category.
Fruit & Vegetables Beverages

Dairy & Eggs Bread & Grains Packaged/Prepared Foods
Condiments Snack Foods Meat, Poultry, Fish
Growth in sales of pre-packaged organic foods between 2008 and

2012 were as follows:
Top 10 Organic Pre-Packaged Grocery Category Segments, 2008 and 2012
Categories
2008 Sales ($ millions) 2012 Sales ($ millions)
Soya Drinks
47.3
58.4
Milk
37.2
57.7
Coffee (Roast &Ground)
27.2
47.0
Yogurt Products
35.4
44.2
RTE Cereal
32.0
37.6
Eggs
15.7
21.6
Soup
19.5
20.1
Bread (Commercial)
13.1
19.0
Juices & Drinks (Shelf Stable)
9.8
16.1
Baby Food
11.4
12.8
2
Annual Growth (%)

48
8.9
10.5
5.0
3.7
6.8
0.7
7.8
9.8
2.7
Canadas Organic Market: National Highlights 2013: http://www.ota.com/pics/media_photos.171.img_filename.pdf

Source: Canada Organic Trade Association, Canadas Organic Market: National Highlights 2013
Exporters will find that success in this market will be linked in large part to the quality and uniqueness of
their product, as well as how that product addresses the consumers needs for convenience and nutrition.
Also prevalent are safety concerns about farming, processing trends, and technologies such as genetic
modification and food irradiation.
Ethnic Foods
Canada is a land of tremendous ethnic diversity brought about by successive waves of immigration from
various parts of the world. Immigration has become even more important in recent decades as the
countrys birth rate has gradually fallen below replacement levels.
The latest Statistics Canada data3 shows that by 2031:
Between 25% and 28% of the population could be foreign-born, the highest historical ratio to date.
About 55% of this population would be born in Asia, and about 47% of second-generation Canadians
would belong to a visible minority group, nearly double the 2006 level of 24%. Second generation
refers to those who are Canadian-born and have at least one parent born outside Canada.
The majority (96%) of people belonging to a visible minority group would continue to live in one of the
major metropolitan areas, making up 63% of the population of Toronto, 59% in Vancouver, and 31%
in Montral. In contrast, they would comprise no more than 5% of the population in St. John's,
Greater Sudbury, Trois-Rivires, Qubec, or Saguenay.
Most of this visible minority population would be young: 36% of the population under 15 years of age
would belong to a visible minority group, compared to 18% of persons aged 65 and over.
South Asians and Chinese should still be the largest visible minority groups in Canada. The South
Asian population would rise to 3.2 million to 4.1 million, compared to 1.3 million in 2006, while the
Chinese population would go from 1.3 million in 2006 to between 2.4 million and 3 million in 2031.
Arabs and West Asians are the visible minority groups that would grow the fastest. Canadas Arab
population could thus number between 806,000 and 1.1 million in 2031 and its West Asian population
between 457,000 and 592,000.
The number of non-Christians would more than double, reaching between 5.3 million and 6.8 million
in 2031 compared to 2.5 million in 2006, or from 8% of the population in 2006 to 14% in 2031. Within
the population having a non-Christian religion, approximately one person in two would be a Muslim in
2031, whereas the corresponding proportion in 2006 was estimated at 35%. Fewer than two
Canadians in three would have a Christian religion in 2031. Three Canadians in four (75%) had a
Christian religion in 2006. The corresponding proportion in 1981 was 97%.
These trends are important since, through marriage or common law relationships, Canadians are
increasingly partnering with ethnic groups different from their own. This trend is leading to a new
generation of multi-ethnic children with more open attitudes relating to lifestyles and cultures, which in
turns affects the broader Canadian population. As these new cultures continue to come together and
tolerance to this synthesis increases, markets for food products from diverse traditions increase. Fruits
and vegetables which are familiar to these ethnic groups are already appearing in the Canadian market
and are quickly becoming mainstream options. Packaged coconut water is a good example of a drink that
is rapidly growing in this market because of both the ethnic connection and perceived health benefits.
Joining Indian, Caribbean and Mediterranean foods which have long enjoyed popularity here, Halal and
kosher foods are becoming the fastest growing sectors of Canadas food industry, going beyond their
traditional markets to appeal to consumers interested in organic and ethnic options. Consumption of
kosher foods is currently supported by approximately 330 thousand Jewish consumers, and Halal by an
estimated 1 million Muslims. Grocery giant Loblaws has capitalized on mainstream ethnic food
opportunities by developing a line of fusion and authentic ethnic ready-made meals. The President's
Choice line of frozen Indian, Thai and Chinese appetizers and entres offers a wide selection of dinners
The ethnocultural diversity of the Canadian population. March 9, 2010. Statistics Canada. http://www.statcan.gc.ca/pub/91-551-x/2010001/hlfs-eng.htm. Additional charts and statistics were obtained from: http://www.cic.gc.ca/english/resources/statistics/menu-fact.asp
3

ranging from butter chicken and chicken tikka masala to pad thai and general tao chicken, all of which
cater to today's time constrained consumers. Several brands of Indian simmer sauces, marinades and
chutneys; ready-to-eat frozen meals; spices; and tea are natural, organic, and trans fat- or gluten-free.
Organic rice and pulses, staples of Indian cuisine, are also prevalent in many grocery stores.
With the rapidly growing Muslim population, more companies are certifying their
products as Halal and using services such as the Halal Product Development Services
(www.halalproductservices.com) to help them make a smooth transition into this market.
These products are crossing cultural boundaries with the introduction products such as
frozen Halal Italian meat ravioli, Halal Ukranian potato and cheddar pierogies (stuffed
dumplings), and Halal baby food.
Fair Trade Foods

Fairtrade Canada reports that every year, a growing number of Fairtrade certified
products are available in Canadian stores and restaurants. In May 2013, Toronto was
officially designated the largest Fair Trade City in North America, with 273 retail outlets
and 155 cafs carrying two or more distinct Fairtrade certified products.
According to Fairtrade Canada, sales of selected labelled Fairtrade certified products
rose significantly in 2011, as shown in the following chart:
Canadian Sales of Labelled Fairtrade Certified Products by Volume (kg), 2008-2011
Coffee
Cocoa
Tea
Fruit
Grains Nuts & Oils Herbs & Spices
2008
5,029,440
604,958
87,457 1,483,786
22,184
510
3,970
2009
5,610,955
337,769
90,080 2,307,557
55,256
1,443
5,505
2010
5,876,689 1,385,070
56,834 3,104,787
18,370
6,683
3,989
2011
6,118,803 1,786,261
64,627 2,111,870
22,166
11,067
4,750
Total
22,635,887 4,114,058 298,998 9,008,000 117,976
19,703
18,214
Source: Fair Trade Canada, Facts and Figures 2013 (http://fairtrade.ca/en/about-fairtrade/facts-figures)
Between 2008 and 2011, over $22.6 million worth of Fairtrade certified coffee was sold in this market,
$4.1 million worth of cocoa, and nearly $300,000 worth of tea. Fairtrade certified fruit was a big seller, at
$9 million over the four year period.
According to a survey conducted by Fairtrade Canada 4 most Canadians are concerned about traditional
Fair Trade issues, namely worker exploitation, unfair trade practices, and poverty in developing countries.
They have high expectations for companies to act responsibly when working in developing countries,
especially with regard to fair pay for workers and farmers. Between 2008 and 2011, the number of
Fairtrade customers in Canada increased from 14% to 17%, with 10% being young customers and 7%
mature ones. In the same survey, 86% of respondents believe that companies play an important role in
protecting the environment, and an increasing number of customers say they choose Fairtrade certified
tea (33% in 2011 compared with 23% in 2008), coffee (30% compared to 22% over the same period), and
bananas (30% compared to 26%) when available. Fairtrade products are sold mostly in supermarkets
(60% of sales), coffee shops (30%), and health food stores (28%). When examining demand compared to
existing outlets, fast food restaurants and discount stores offer the greatest potential for growth of retail
sales, at 18% and 16% respectively.
To become Fairtrade Certified and be allowed to display the Fairtrade mark, Canadian importers and
distributors must meet stringent international criteria set out by Fairtrade International (FLO) and be
certified by an accredited, independent certification organization. The quality of the Fairtrade product
Fairtrade Canada, Fairtrade International Consumer Perceptions Survey 2011

(http://fairtrade.ca/sites/default/files/Fairtrade_2011_Consumer%20Perceptions%20Survey_Canada_Consumer_EN.
pdf)

must be consistent and competitive to other brands sold in this market. Standards to be met for
certification include fair price and premiums; fair and safe labour; environmental standards related to the
product and its manufacture; and credit and contracts. Fairtrade Canada offers links to the standards
required for 13 product groups through their website: http://fairtrade.ca/en/products/products-canada. For
example, the international standards for Fairtrade certified Cocoa are:
Producers are small family farms organized in co-operatives, which they own and govern.
The minimum guaranteed price is paid directly to the producer co-op. The minimum floor price is
currently set at US$2000/metric ton (MT) for conventional cocoa beans and US$2300/MT for organic
cocoa beans. When the world market price is higher than Fair Trade, the market price, plus the
premium, is paid to producers.
A Fairtrade Premium of US$200/MT is included in the purchase price. This premium is used by
cooperatives for social and economic investments such as education, health services, processing
equipment, and loans to members.
Environmental standards restrict the use of agrochemicals and encourage sustainability.
Pre-harvest lines of credit, of up to 60% of the purchase price, are given to co-operatives if requested.
No forced labour of any kind, including child labour, is permitted.
Clicking on the links below will provide standards, including pricing, for other organic products.
Coffee
Fruit
Grains and Cereals
Nuts and Oils
Spices & Herbs

Sugar
Tea
Wine
Imports
According to Statistics Canada, imports of organic
foods identified by the HS Codes outlined in this
report are on track to reach a five year high in 2013.
Imports of ethnic and Fairtrade foods are not
identified separately for customs purposes.
For the first three months of this year alone, imports
amounted to $155 million. This compares to $473
million in 2012, itself the highest value in preceding
years. Just as part of the higher import numbers in
2012 and 2013 reflect the addition of new HS codes for customs purposes, the low number in 2010 is
reflective of adjustments in data collection as the new organic food regime was being put into place. In
2012, imports of organic foods included in the Organic Trade Association report captured 46% of the
market by volume, exceeding the 43% captured by domestically produced brands.
Organic Dairy Products: In 2012, Canada imported $745,658 worth of organic yoghurt compared to
$279,264 in 2009; the United States was the major supplier in both years.
Organic Fresh Vegetables: Imports of organic fresh vegetables were valued at $157 million in 2012, up
from $140 million in 2009.
Organic Fresh Fruits: Likewise, imports of organic fresh fruits valued at $123 million in 2012, exceeded
the $111 million imported in 2009.
Organic Tea and Coffee: In 2012, stable consumption of imported organic coffee was evident,
unchanged from 2009 imports of $154 million. While imports of organic green and black tea were lower,
at $5.1 million and $5.8 million respectively, these were significantly higher than in 2009 when their
imports were valued at $3.3 million and $2.3 million respectively. However, whereas in 2009 more black

tea was imported than green tea, the reverse was true for 2012, when imports of green tea exceeded that
of black tea.
Medicinal Plants - Herbal Teas: Placed in a separate HS classification category, imports of herbal teas
declined in 2012 to $1.2 million from $1.4 million in 2009.
Organic Olive Oil: Imports of organic olive oil more than doubled over the past four years, rising from
$7.3 million in 2009 to $16.8 million in 2012.
Organic Prepared Foods and Milk Beverages: Imports of organic tomato sauces were valued at $8.7
million in 2012. Imports of infant foods containing milk solids and beverages containing milk were sourced
almost entirely from the United States.
Imports of Organic Foods in 2012, by Quantity (Kg) and Value ($)
Kg
293,189
292,080
1,109
71,583,956
4,419
183,740
645,134
1,252,730
541,190
3,946,116
3,424,492
24,000
1,977,274
1,086,863
467,567
890,881
4,071,406
17,593,447
7,816,727
6,942,796
2,952,740
6,791,891
508,720
130,564
925,511
57,219
330,188
312,662
3,317,146
1,433,506
2,818,349
272,736
750,614
113,328
70,307,847
32,165,933
2,407,112
Chapter 4 - Dairy Products, Eggs, Natural Honey

0403101010 Yogurt within access commitment
0403102010 Yogurt over access commitment
Chapter 7 - Edible Vegetables; Certain Roots and Tubers
0701900010 Potatoes, except seed
0702002910 Tomatoes, Cherry, except process
0702009921 Tomatoes, Roma, excluding greenhouse
0702009929 Tomatoes, excluding greenhouse
0703103910 Onions or shallots, green
0703109910 Onions
0704109010 Cauliflowers and headed broccoli
0704209010 Brussels sprouts
0704902910 Broccoli
0704903910 Cabbage, except Chinese
0704904910 Chinese cabbage or Chinese lettuce
0705119020 Cabbage lettuce, head lettuce, excl. greenhouse
0705199029 Lettuce
0705199021 Lettuce, pack fresh salad cut mixes, <=1kg
0705199022 Lettuce, pack fresh salad cut mixes, >1kg
0706102011 Baby carrots, in pack <=1 kg each
0706102012 Baby carrots, in bulk or pack, >1 kg each
0706104010 Carrots
0706903010 Beets
0706905910 Radishes
0707009920 Cucumbers & gherkins, excluding greenhouse
0708109910 Peas (Pisum sativum)
0709209910 Asparagus
0709300010 Eggplants, aubergines
0709409010 Celery, other than celeriac
0709609020 Peppers: Capsicum or Pimenta, excl. greenhouse
0709700011 Spinach, NZ & orache spinach (garden), <=500g
0709700012 Spinach, NZ & orache spinach (garden), >500g
0709700019 Spinach, New Zealand & orache spinach
0709994010 Sweet corn-on-the-cob
Chapter 8 - Edible Fruit & Nuts; Citrus Fruit or Melon Peel
0803900011 Bananas, other than plantains
0804300011 Pineapples
$
745,658
743,264
2,394
156,930,873
1,240,887
659,763
1,109,152
3,731,014
1,637,977
3,066,534
4,676,364
156,528
2,582,001
1,954,722
488,397
1,133,839
27,846,361
27,687,109
19,385,777
9,750,404
4,055,927
7,236,474
1,010,178
284,570
1,682,429
315,002
1,772,544
524,106
4,129,425
3,755,932
19,716,995
2,256,180
2,945,317
138,965
123,124,408
29,467,302
2,800,852

0805100012 Oranges, except Temple
0805400010 Grapefruit, including pomelos
0805500011 Lemons
0805500012 Limes
0806109110 Grapes, o/t species Vitis labrusca
0807110010 Watermelons
0807200010 Papaws (papayas)
0808101081 Apples, Golden Delicious, not for processing
0808101082 Apples, Red Delicious, other than for processing
0808101083 Apples, Granny Smith, other than for processing
0808101084 Apples, Gala, other than for processing
0808101089 Apples, other than for processing
0808302910 Pears
0809292910 Cherries
0809302910 Peaches, excluding nectarines
0810109910 Strawberries, except for processing
0810201910 Raspberries & loganberries
0810401011 Cranberries
Chapter 9 - Coffee.Tea, Mat and Spices
0901110010 Coffee, not roasted, not decaffeinated
0901210010 Coffee, roasted, not decaffeinated
0902101010 Green tea, not fermented, individual serving bags
0902109010 Green tea, not fermented, in packages <= 3 kg
0902200010 Green tea, not fermented, in packages > 3 kg
0902301011 Black tea, not decaf, individual serving bags
0902309011 Black tea, not decaf, in pack <= 3 kg
Chapter 12 - Oil Seeds And Oleaginous Fruits; Seeds And Fruits; Medicinal Plants
1211901010 Herbal tea, in bags, for individual servings
Chapter 15 - Animal or Vegetable Fats And Oils
1509100011 Olive oil, virgin, in container sizes < 18 kg
Chapter 19 - Preparations Of Cereals, Flour, Starch Or Milk; Bakers' Wares
1901102010 Food preparation containing >10% dry weight of milk solid, infant use, retail sale
Chapter 21 - Miscellaneous Edible Preparations
2103209091 Tomato sauces
Chapter 22 - Beverages, Spirits And Vinegar
2202904910 Milk beverages
2012 Total
Source: Statistics Canada, Canadian International Merchandise Trade Database, 2013
4,463,141
1,277,700
5,020,950
3,353,440
2,248,550
526,258
77,791
467,406
1,154,733
1,661,408
4,497,232
2,433,889
512,847
556,985
3,529,462
1,017,128
1,711
2,934,171
26,997,123
24,502,037
1,886,052
96,530
105,778
93,685
228,785
84,256
5,878,089
1,598,270
7,155,319
3,200,985
7,350,739
536,717
292,885
888,732
1,894,995
$2,925,034
$8,262,977
$4,967,259
$2,529,521
$1,516,339
$15,193,741
$7,881,440
$8,805
$18,774,407
$165,197,772
$120,552,675
$33,709,672
$2,109,855
$1,901,932
$1,102,547
$3,874,090
$1,947,001
84,466
$1,247,831
3,866,610
$16,766,916
2,825
$13,840
5,750,592
$8,671,277
180,398
179,067,006
$539,665
$473,238,240
Most imported certified organic foods are supplied to Canada by the United States, Mexico, and some
European countries. However, TFO Canada client countries have earned market share for some high
quality certified products. A few examples are provided below for imports of certified organic vegetables
and fruits.
Certified Organic Vegetables Supplied by TFO Canada Client Countries in 2012, by Importing Province
Country of Origin
Province Quantity (Kg)
Value ($)
0703103910 Onions or shallots, green, fresh/chilled India
Ontario
26,192
108,092
0706104010 Carrots, fresh or chilled
Guatemala
Ontario
13,824
41,571
0709209910 Asparagus, fresh or chilled
Peru
Ontario
22,748
136,519
Qubec
649
4,944
0709300010 Eggplants, aubergines, fresh or chilled Dominican Republic
Ontario
127,605
73,178
Qubec
24,378
22,237
10

0709609020 Peppers of the genus Capsicum or
Pimenta, excluding greenhouse
Dominican Republic
Ontario
70,009
Qubec
349
Egypt
Qubec
2,455
0709700011 Spinach, NZ & orache spinach
Jamaica
Ontario
13,176
(garden), <=500g
Ontario
17,937
0709700011 Spinach, NZ & orache spinach
Dominican Republic
Ontario
12,278
(garden), >500g
Guyana
Ontario
5,817
Jamaica
Ontario
9,387
Trinidad and Tobago
Ontario
26,031
Certified Organic Fruits Supplied by TFO Canada Client Countries in 2012, by Importing Province
Country of Origin
Province
Quantity (Kg)
0803900011 Bananas,
Colombia
British Columbia
1,769
other than plantains,
Manitoba
873
fresh
New Brunswick
120,866
Ontario
6,911,223
Qubec
791,126
Dominican Republic
New Brunswick
11,244
Ontario
35,011
Qubec
1,474
Saskatchewan
4,357
Ecuador
Alberta
2,626,322
British Columbia
5,534,150
Manitoba
128,554
New Brunswick
1,271,933
Ontario
3,902,443
Qubec
2,593,019
Saskatchewan
236,036
Guatemala
Alberta
10,096
British Columbia
90,703
Manitoba
617
New Brunswick
11,449
Ontario
1,319,689
Qubec
19,788
Saskatchewan
620
Honduras
Ontario
964,096
Qubec
43,545
Peru
Alberta
80,248
British Columbia
1,075,656
New Brunswick
1,689
Ontario
354,110
Qubec
763,688
Philippines
Ontario
9,553
0804300011 Pineapples, Honduras
Ontario
9,904
fresh
Qubec
62,030
0805100012 Oranges,
South Africa
Ontario
61,274
except Temple, fresh
Qubec
109,257
0805400010 Grapefruit,
Peru
Ontario
10,759
including pomelos,
South Africa
Ontario
34,875
fresh/dried
Qubec
36,537
0805500011 Lemons,
Bangladesh
Ontario
12,508
fresh
Qubec
4,460
11
70,504
843
11,893
30,555
38,539
26,386
22,690
13,504
61,123
Value ($)
$1,822
$868
$138,916
$5,739,269
$812,075
$9,206
$38,005
$1,623
$3,055
$2,559,908
$5,673,599
$126,443
$1,302,324
$3,885,445
$2,484,866
$214,552
$10,240
$92,468
$620
$11,715
$918,788
$22,687
$623
$722,947
$32,073
$77,691
$1,103,817
$2,528
$423,122
$613,154
$10,231
$12,801
$62,197
$100,705
$148,324
$20,426
$44,113
$46,952
$58,171
$24,240

Chile
South Africa
0805500012 Limes, fresh
0806109110 Grapes,o/t
species Vitis labrusca,
fresh
Guatemala
Chile
China
Guatemala
Honduras
Peru
South Africa
0808101081 Apples,
Golden Delicious, fresh
0808101083 Apples,
Granny Smith, fresh
Chile
Ontario
Qubec
Ontario
Qubec
Ontario
Manitoba
Ontario
Qubec
Ontario
Ontario
Ontario
British Columbia
Ontario
Qubec
Ontario
Qubec
Qubec
Chile
British Columbia
Ontario
South Africa
Ontario
Qubec
0808101084 Apples,
Chile
Alberta
Gala, fresh
British Columbia
Ontario
Qubec
0808101089 Other
Chile
British Columbia
Apples, fresh
Ontario
Qubec
0809302910 Peaches,
Chile
Ontario
excl nectarines, fresh
Mexico
Ontario
0810401022 Blueberries, Chile
Alberta
cultivated, fresh
British Columbia
Manitoba
New Brunswick
Ontario
Qubec
Saskatchewan
Source: Statistics Canada, Canadian International Merchandise Trade Database, 2013
4,257
7,430
197,878
142,882
3,850
3,938
73,420
16,302
641
17,199
3,461
2,207
21,220
35,424
8,527
2,445
9,761
$6,535
$6,003
$324,631
$195,579
$11,981
$11,040
$228,615
$50,489
$490
$198,878
$45,361
$11,646
$56,118
$159,968
$59,182
$19,315
$22,594
24,546
128,832
167,887
42,336
1,143
279,297
553,413
7,182
33,999
155,347
28,633
53,006
77,815
40,185
110,881
15,054
3,877
658,125
38,244
1,216
$50,819
$215,743
$245,873
$64,680
$1,749
$575,394
$869,835
$13,493
$107,225
$332,509
$89,548
$127,763
$197,754
$321,694
$755,607
$93,014
$38,676
$4,094,436
$197,450
$10,274
Trends and Opportunities

Canadians remain interested in foods that are fresh, balanced, and have a good nutrient content. They
look for foods that have a low trans-fat content, are made with whole grains, and that are low in sugar,
salt and sodium. When buying, consumers also examine the product to see if Omega-3 fatty acids are
present (a positive factor) and if the food is organically grown. The country of origin is also important, and
more than half of Canadians: believe that organic farming is better for a healthy environment; consider
organic foods a healthier, more nutritious choice; believe ecological sustainability is an important
consideration when choosing food products; and want products that are not genetically engineered.
12
Corporate Social Responsibility

An exporters Corporate Social Responsibility (CSR) strategy is important in trade with this country. CSR
is not a new concept but buyers are taking a direct and deliberate look at the total production process
including procurement, manufacturing, and waste disposal. Exporters should try to market themselves by
offering buyers their published CSR statements and try to choose to work with vendors committed to the
same level of compliance. While labour rights issues are not currently viewed by most buyers as being as
important as environmental issues, importers do evaluate these factors as part of the whole picture,
particularly when making decisions about whether to buy from specific countries. As well, major violations
of human rights and/or political or social instability can affect sourcing decisions. Brands clearly want
governments in producer countries to improve on environmental and labour standards regulations and
their enforcement. According to companies interviewed in a recent survey, countries in Central America
and the Caribbean could gain some degree of competitive advantage over Asian countries with relatively
lower production costs if they meet the challenges described above.
The Environment
On-going concern over the environment alters the way many Canadians view products, with the demand
for organic and natural foods and medicinal products continuing to rise. Environmentally-friendly goods
such as detergents that are less polluting and biodegradable or recyclable products and packaging are
also favourably viewed.
Buy Local (100 mile limit)

Driven by the green trend, the increasingly popular buy local movement supports local producers
(within a 100 mile limit). This will likely have more of a negative effect on imports in the summer than in
the winter months. During the growing season in Canada, consumers, chefs and even some food
manufacturers are becoming more proactive in sourcing their cooking ingredients directly from farmers
and local artisan producers. As a result, restaurants are forming exclusive partnerships with local food
producers to supply outlets with all of their required ingredients for a true farm-to-fork concept.
Ageing Population
An important factor to consider in marketing organic foods in this market is the fact that Canadas
population is ageing rapidly and becoming more urban; both of these factors will have a positive impact
on the demand for a wide range of healthy foods. Two main reasons for the ageing of the population are
the nations low fertility rate and increasing life expectancy. Statistics Canada predicts that the first of the
baby boomers which make up the bulk of Canadas population will reach the age of 80 in 2026. These
citizens are relatively wealthy, well educated and willing to purchase food that they consider healthy and
exotic, focusing on foods with quality ingredients.
Other Trends
Organic and ethnic food producers could take guidance from the following general food trends to
capitalize on this lucrative market:
Functional Food: As consumers increasingly become more health conscious, demand for products
with added health benefits and nutrients keeps rising. Such products include yogurt, frozen yogurt,
juice, tea, ready-to-drink tea, almond milk, coconut water, breakfast cereal, bread, eggs, condiments,
superfoods (broccoli, sweet potatoes, etc.), and fish, chicken, and pork products. Many of these
products are enriched with nutraceuticals ranging from vitamins, fibre and calcium, to omega-3,
probiotics, and antioxidants. Food and beverage products that contain superfruit (e.g., exotic varieties
such as aai, gogi berries, mangosteen, noni, and pomegranates, as well as cranberries and
blueberries) are also common on store shelves. Manufacturers have introduced many of these
foreign fruit to consumers through flavour extensions for yogurt, snack, vinaigrette, jam, tea and juice
products. The blending of mainstream fruit flavours (e.g., strawberry, raspberry) with less familiar
superfruit varieties in food products has also helped boost the popularity of these healthy fruit. Food
and beverage products containing superfruit are seeing tremendous growth due to their high
antioxidant content and nutritional benefits. Based on current demand, industry experts suggest that
13
superfruit pulp, extracts, juice and flavourings will continue to appear in a wider variety of products.
Consumers are also seeking products that offer extra health benefits, such as immune support. A
vast number of products now contain antioxidants, probiotics or prebiotics to strengthen immunity and
improve overall health. Such products include juice, add-to-water flavouring crystals, yogurt, frozen
yogurt, breakfast cereal, ready-made meals, and bread. The segment is expected to continue to grow
as consumers look for more of the friendly bacteria and antioxidants in their food products.
Better-For-You Food: There has been an explosion of interest in gluten-free products; products with
low or no calories, fat, sugar or salt; whole grain; and high-fibre and calcium alternatives in response
to consumer demand for lighter diet options. All of these formulations have become particularly
popular in staple food categories such as dairy, baked goods, oils, and fats, as well as in the
convenience segment (e.g., frozen and chilled ready-meals).
Portion-Controlled Products: Manufacturers have responded to consumer demand by offering a
wide assortment of 60, 90, and 100 calorie snacks. Consumers are more inclined to purchase portion
or calorie controlled versions of their favourite food and beverage, often less healthy products, rather
than drastically modifying their diets. Products include portion-controlled packages of cookies, chips,
crackers, popcorn, chocolate, muffins, yogurt, granola snacks, carbonated soft drinks, juices, and
chocolate milk.
Dietetic Products: Demand for lactose, glucose, and allergen-free food and beverages, as well as
for foods with no salt or sugar added for diabetics is rising, driven by health-conscious consumers
and those with food allergies and intolerances.
Artisan and Specialty Food: Canadian trade shows reflect the growing demand for premium food
products such as premium jam and preserves; tea; gourmet spices and barbecue rubs, condiments,
sauces, oils, spreads and dips; matcha green tea; dark and European chocolate; and bison meat.
Premium packaging, product displays and promotional materials are used. Retailers are expanding
their gourmet food offerings with artisanal cheese, bread, dips, oils, spreads, condiments and
confectionary; freshly-prepared meals and desserts; greater ethnic and international food
assortments; premium tea and coffee; and larger wine selections to cater to consumer demand.
Stores are also being re-designed to create inviting upscale shopping environments for consumers.
Premium, Bite-Sized Indulgence Food: The largest dessert trend is for smaller-portioned and bitesize rich desserts. For example, mousses, cheesecakes, crme brle, crme caramel, chocolate,
and tiramis are displayed in small, bite-size portions for the retail grocery and foodservice sectors.
The popularity of two-bite and petite deluxe desserts can be attributed to rising health concerns and
time-pressed consumers who do not have time to prepare or eat large and very filling desserts.
Available to shoppers at retail grocery outlets, these gourmet products particularly appeal to
consumers as they can enjoy restaurant-style desserts at reasonable prices for home consumption.
Child-Focused Organic Foods: These are particularly prevalent in cereals, snacks, and juices.
Packaging: Developments in retail packaging include:
Clear: Some manufacturers are packaging fruits, vegetables and prepared foods like soups and
sauces in clear jars or high-end plastic bags some of which are squeezable instead of
traditional cans. This makes the product clearly visible; sometimes even the product labels are
transparent.
Tetra: Tetra packs hold an expanding line of products particularly in the drinks; soups; and
sauces categories.
Compostable: While innovations in packaging reductions continue, packaging that is defined as
compostable after use is also becoming more prevalent. With municipalities across Canada
introducing clear or compost recycling programs, these products are very well placed.
Bulk is Green: Bulk food products are being marketed here as a green packaging initiative.
As a result of rising energy prices and carbon footprint concerns, speed to market has become extremely
important to buyers. They look at how close the suppliers are to the Canadian market, and how close they
are to local or regional inputs. Medium cost countries and suppliers who are well-positioned on these
issues can therefore benefit from potential competitive advantages. It is expected that brands will
increasingly demand environmentally sound practices at every stage in the process, from field to market.
To this end, suppliers are encouraged to pursue long term relationships with nearby raw material
producers rather than using multiple producers in farther off locations; this makes it easier to solve
material defect problems.
14

The last trend to discuss is the role that bilateral and regional trade
Canadian buyers have stated that
agreements play in this market. As tariffs are removed, buyers are deterrents to importing from
motivated to source from those particular countries and regions. Leading up specific countries include
to and after the end of tariffs, many buyers start to reduce the number of inconsistent product quality, poor
small suppliers with whom they have direct relationships and instead begin packaging and unacceptable
establishing longer-term relationships with a fewer number of large hidden costs in waybills.
suppliers. This does not necessarily mean the demise of small business as
these large companies often have their production done in several wholly owned or subcontract facilities
in a number of countries. Canada is party to several regional, bilateral and multilateral trade agreements
for goods and services. These agreements cover topics such as market access; investment; government
procurement; subsidies; agriculture and services competition; intellectual property rights; dispute
settlement;
antidumping;
and
countervailing
duties.
More
details
are
available
at:
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/index.aspx. There is also
an Agreement on Internal Trade which aims to reduce inter-provincial barriers to the movement of
persons, goods, services and investment within Canada. Further details and updates on any of these can
be obtained through the Industry Canada website: http://www.ait-aci.ca/index_en/ait.htm.
15
Trade Practices
Consistency in quality and delivery of the
product with ordered specifications are
crucial to maintaining Canadian orders.
Competition
Canadian businesses engaged in the importation, resale, distribution

and retail sales of food products across Canada look for sales support Continuity of supply is a key factor in the
as well as regulatory compliance, marketing and promotional efforts importers, wholesalers and retailers
commitment to marketing imported
from their foreign suppliers in order to market their products and
goods in Canada. Sporadic shipments
develop new client bases. Since Canada ranks among those countries will damage the exporters reputation and
with the highest imports per capita, exporters from all over the world are chance of success in Canada.
present here, competing fiercely and consistently for a part of this
lucrative market. To make inroads here, an exporter must therefore either offer a completely new product
or be able to push aside an existing supplier with a more attractive offer in terms of quality, service, price,
packaging or labelling.
According to a recent report by Neilson Market Track, new items help to increase overall sales, especially
when sales of existing products are stagnant. Amongst organic products identified as grown, processed
or packaged in Canada, ten products accounted for nearly three-quarters of total Canadian product sales:
tea, cooking oils, coffee, ready-to-eat cereals, shelf-stable juices and drinks, flour, dry pasta, bread, hot
cereals dried beans, and rice. There is a healthy degree of competition amongst brands in these product
categories.
The key to successful exploitation of the Canadian market is the development of an organized marketing
strategy. The following require priority attention:
develop an easy to use website with pictures and

contact information;
rapid turnaround in sample production;
same-day reply (by e-mail, fax, or telephone) to
every communication;
on-time deliveries, with any delays agreed to in
advance with your buyer;
delivery of product which corresponds precisely
with agreed-to specifications or samples, with any
changes agreed to in advance with your buyer;
continuity of supply;
maintenance of high quality at a
competitive price;
appropriate packaging material for
overseas shipments;
adequate handling and storage facilities;
promotion, especially of new products
(include names of current or past clients
and/or their countries);
knowledge of payment terms.
In addition, you should ensure that your representative who is in contact with the buyer speaks and writes
clear and fluent English or French, depending on the buyers preference. Exporters can focus on
strategies including:
adjusting to globalization by becoming niche players, specializing by product or by market;

improving export marketing skills and knowledge of foreign markets;
putting more emphasis on product development and the production of quality-assured and
environmentally friendly products, i.e., adopting the ISO 9000 series or similar quality standards;
ISO 14001 series or similar environmental management standards; and ISO 26000
guidance on social responsibility.
16
Trade Shows
Please note that TFO Canada does not provide letters of invitation to assist with obtaining travel or entry
visas. These must come from the buyer directly, or from proof of registration at a trade show.
The Canadian Food Inspection Agency publishes a Food and Horticultural Products Import Guide for
Trade Fairs and Shows in Canada. Suppliers should review this document when preparing to exhibit in
Canada.
Canadian importers and a number of retail buyers usually visit foreign markets and their suppliers once a
year. They normally organize such trips to coincide with the most important foreign trade shows such as
BioFach, the largest international organic and natural food trade fair (www.biofach.de/en) where they can
explore possibilities for imports, as well as assess industry trends. It is advisable to check with your agent,
buyer or Embassys commercial counsellor to fully assess
Both exporters and importers should ensure that each
the documentation requirements, costs and benefits of
transaction or contract is specific about questions relating
your participation in trade shows.
to non-performance of either party, as well as the
Major trade shows in Canada include:
Bakery Showcase: Held every two years, the next one

is scheduled for May 2014 in Toronto.
CFRA Show showcases international, national and
local suppliers of specialty, niche and commodity
products. The next one is in March 2014.
Grocery Showcase is next held in March 2013.
Grocery Innovations Canada will be held in October
2013.
SIAL, an international exhibition of food, beverages,
wine and spirits, is held every second April in Montreal.
The Canadian Health Food Association (CHFA) food
shows are also important: the next CHFA West will be
held in April 2014; CHFA Qubec is held in February;
and CHFA East in Toronto in October.
acceptability or not of products as delivered, e.g., by

stating product specifications and/or payment terms. Any
potential for disagreement should be covered by
specifying an arbitration board, e.g., the Dispute
Resolution Corporation or the Canadian International
Trade Tribunal and their relevant rules of arbitration.
Trade disputes between Canada and other countries may
be settled under relevant arbitration panels such as the
International Chamber of Commerce (www.iccwbo.org),
or others constituted under the WTO and NAFTA.
Importers may also appeal to the Canadian International
Trade Tribunal (www.citt-tcce.gc.ca), an independent,
quasi-judicial tribunal that, among other duties, reviews
disputes between importers and the CBSA. For fresh
produce, the Dispute Resolution Corporation
(www.fvdrc.com) is a useful resource. Both parties should
agree beforehand to be mutually bound by the contract.
Quality
There are two main guides for ensuring that organic products sold on the Canadian market are safe for
consumption: the mandatory Organic Products Regulations (OPR) and the voluntary Canadian Organic
Retailing Practices Manual and Guide. The latter is a best practices guide that outlines suggestions to
protect the organic integrity of the products through all stages to market.
Canadas OPR ensure that the Canadian organic standards and permitted substances list are mandatory
for all organic food imported into Canada. Organic products may be imported if they are:
Certified to the Canadian Organic Standard;

Certified as organic in accordance with an agreement, entered into with another country,
regarding the importation and exportation of organic products; and
Certified as organic by a recognized certification body.
All importers of organic products must be able to demonstrate, at all times, that the imported product
conforms to these import requirements. The importers must retain all documents attesting to this fact.
These documents will be verified by CFIA inspectors. By enforcing the organic principles of production,
17

the regulations ensure that the organic integrity of a product is not compromised at any stage of
preparation. This includes preventing the co-mingling of organic and non-organic agricultural products
and contact of organic products with prohibited substances.
The Canada Organic Office provides information on:
Certification and conformity verification

Labelling and general information
Standards
Certification: All food, beverage and livestock feed products for sale in Canada must be certified to
Canadian standards and accredited by a Conformity Verification Body recognized by the Canadian
Food Inspection Agency (CFIA). The CFIA enforces the regulations through the new Canada Organic
Office. The current list of approved accreditors can be found at this website:
http://www.inspection.gc.ca/food/organic-products/certification-and-verification/certificationbodies/canada/eng/1327861534754/1327861629954.
Any supplier wishing to obtain certification for an agricultural product must apply within 12 months of
when the agricultural product is expected to be marketed as an organic product. As such, persons
wishing to obtain certification should be under the oversight of a Certification Body for a sufficient period
of time prior to the granting of certification to permit proper assessment of the operators management
system and its compliance with the proposed Regulations. Organic certification must be renewed on
regular basis, within 12 months from the date of granting. This renewal of certification would be required
to verify that the criteria continue to be met by the holder of the certification.
Regulation equivalency agreements are in place between Canada and Costa Rica, the European Union,
Switzerland, and the United States. For the Costa Rica Agreement, plant products that are: produced and
processed in Costa Rica; are in conformity with the National Organic Production Regulations of Costa
Rica and; are produced and processed under an organic certification program that provides safeguards
and guidelines governing the production and processing of such products, are deemed equivalent to
those products that have been produced and processed in accordance with the 2009 Canadian Organic
Products Regulations. Organic products exported from Costa Rica for import to Canada under this
recognition may bear the Canada Organic Logo and/or Costa Rica's organic seal as spelled out in the
letter of equivalence recognition. Organic products must be accompanied by an organic certificate issued
by Costa Rican accredited Certification Body. Organic products imported into Canada must meet
Canadian food safety and labelling requirements.
Any import-export agreements with other countries would be signed only if Canada is satisfied that they
meet the principles and objectives of the OPR. The ability to enter into these agreements will provide cost
advantages to consumers along with the additional choice of products available, especially in light of
Canadas high dependence on imported organic goods.
Standards: There are Canadian guidelines on the use of additives, preservatives, antioxidants (sulfur
dioxide), pesticide, and chemical residues which both the importer and exporter should be familiar with,
since failure to comply with these standards can result in fines and possible seizure of goods. Of note,
certain colours approved in the U.S. cannot be used in Canada. Also, while saccharin and cyclamate are
sold as sweeteners in Canada, they cannot be used in processed foods intended for this market.
Bacterial counts such as coliform, E. coli, salmonella, bacillus cereus, S. clostridia and fecal streptococci,
along with aflatoxins, mould and yeast level/types are strictly limited by Canadian standards. The
standard of products exported to Canada should not be left to the discretion of the individual exporter
because a single shipment of inferior quality could jeopardize the reputation of the exporting country. By
enforcing high standards on a countrys products, the resulting positive international reputation will lead to
improved competitiveness and export earnings.
Grading: Since the Canadian market is already supplied with prime quality products of all kinds, a
stringent system for grading and quality control in the exporting country should be established. Processed
foods sold in Canada are graded according to rules set out in the Processed Products Regulations.
18

These grades are based in factors such as closeness to the typical flavour of the fresh fruit or vegetable,
uniformity of colour and size, levels of sand and grit, insect and mechanical injury, rust spots, blemishes
and other defects. In addition, frozen foods are checked for texture and freezer burn.
Canadian grade names cannot be used on fresh produce as these are national trademarks and restricted
to produce grown in Canada. In order of quality, these Canadian grades are Fancy, Choice, Standard, A,
B and C. There is generally no objection if the imported product is graded and so marked according to the
country or origins established criteria for that grade. In this case, the imported product must be sold in its
original container bearing the identification of the country of origin. More information is available at:
www.inspection.gc.ca/english/fssa/frefra/cdnreqe.shtml.
Food Safety and Security: The Food Safety System in Canada has three major partners: the Federal
government, the Provincial and municipal governments, and the food industry. The Canadian Food
Inspection Agency (CFIA), Health Canada, and Canada Border Services Agency all work on different
aspects of food safety. The CFIA monitors the safety and security of Canadas food supply through its
Food Safety Enhancement Program (www.inspection.gc.ca/english/fssa/polstrat/haccp/haccpe.shtml),
and the Protecting Our Borders and Skies (http://dsp-psd.pwgsc.gc.ca/Collection/T22-114-2002E.pdf)
public awareness campaign. The latter, focused on enhanced biosecurity measures, is intended to further
prevent the introduction of pests and diseases which pose a risk to plant and animal health in Canada.
Exporters could consider using those guidelines to adjust production and monitoring systems for
processed fruits and vegetables, including low acid pickles, aseptically packaged fruit and vegetable
juices, frozen fruits and vegetables, and low acid canned vegetables. Such prudent measures, two of
which are outlined below, would greatly enhance the products appeal not only in Canada, but in other
international markets.
Hazard Analysis Critical Control Points (HACCP): This practical system helps producers to review all
potential health and safety hazards in their plant operation and focus on controlling the points that are
critical to the safety of the finished product. The Canada GAP food safety program, established in
2012 (http://www.canadagap.ca), has a globally recognized system that would cover all these
requirements. Briefly, the benefits of using the HACCP system include:
international acceptance of your products as the system is adopted worldwide;

national acceptance, allowing you to become a leader in national industry;
defining responsibilities between government and industry;
improved marketability, using internationally recognizable logos and symbols;
reduced recalls and product destruction, vital to an exporters reputation for quality.
Based on the HACCP, the following may be used as a guide by exporters:
Review your business and company procedures, physical facility, processes, shipping, and
distribution systems. Identify areas where you might be vulnerable to potential sabotage or
terrorist attacks and outline control measures for each of these areas.
Ensure that there are adequate security measures for your facility and employees.
Have procedures in place to ensure the composition and integrity of all ingredients, raw
materials and packaging materials in each facility.
Develop procedures to ensure the integrity and security of your manufacturing equipment and
water supply used in manufacturing.
Develop procedures and anti-tampering measures to ensure the security of your products
once they are produced and shipped to retail.
Develop an action plan to respond to an emergency, including cordoning off areas, moving
employees and contacting identified authorities.
Ensure all hazardous chemicals and pesticides are securely stored away from processing
and handling and are listed on safety sheets on site.
19

Recalls: The CFIA issues food recalls in the event that there is a public safety hazard. Recalls could be
a result of physical, chemical or biological hazards associated with foods for human consumption. These
hazards could be foreign objects such as plastic or metal fragments (physical), cleaning solution
contamination (chemical), or a situation such as E. coli or Salmonella bacteria contamination. The
majority of recalls are instituted voluntarily by companies involved in their sale, distribution or production
to ensure that all products are recalled effectively and consumer health and safety is preserved. The
CFIA works with the responsible parties to ensure that the recall is effective, and advises the general
public about the recall.
Irradiation: Organic foods are not permitted to be irradiated. However, for non-organic (ethnic) foods
irradiation is a food safety and preservation technology, similar to pasteurization. While pasteurization
uses heat to kill microorganisms, irradiation uses a form of energy called ionizing radiation. The process
involves exposing food, either in bulk or packaged, for a specified amount of time to gamma rays. It is
similar to ultraviolet (UV), visible and infra-red light, microwaves and radio waves used for
communication. The effects of irradiation on the food and on animals and people eating irradiated food
have been studied extensively. Irradiation is a safe and effective tool that can help to prevent many food
borne diseases. Any imported irradiated food must also be approved for irradiation in Canada, and must
comply with the relevant regulations, including labelling requirements.
Protective Coatings: Protective edible coatings and waxes are applied to fruits and vegetables as part of
the post harvest treatment of fresh fruits and vegetables as a method of preservation. The Permitted
Substances List provides details on what is allowed for organic foods.
For non-organic ethnic foods, there are a number of protective coatings such as mineral oil, petrolatum
and paraffin that are regulated as food additives under the Food and Drug Act and Regulations. These
Regulations set the limits for the quantity of protective coatings that can be used. In other countries, there
may be some wax and coating products that are generally recognized as safe for use on food; however,
these products must comply with Canadian regulations and be acceptable for use in Canada. There are
other protective coatings that are not currently regulated as food additives but have traditional food
ingredients uses, e.g., vegetable oil. Other substances such as shellac, beeswax, candelilla wax and
carnauba wax are considered aids to processing. It is important to note that allergens and any proteins
derived from them should not be used as components in protective edible coatings. More information on
undeclared allergens and acceptability of post harvest protective coating treatments is available at:
http://www.inspection.gc.ca/english/fssa/frefra/safsal/nonallergene.shtml while information on the use of
sulphites in fresh produce is available at: www.inspection.gc.ca/english/fssa/frefra/safsal/sulfitee.shtml
The Buyer
Entering a new market can be daunting, but with a well-defined marketing plan, the rewards will be well
worth the effort. Exporters have one chance to make a good first impression. Use this chance to show
what you are selling. Initial information about your company should include photographs, prices,
specifications, and quality/safety certifications of your latest products. You can also include photos of your
production facilities. The internet is an essential tool for communication with Canadian buyers, so develop
a website or have an e-mail address that will allow you to readily provide this information so that they can
quickly assess whether they are interested in pursuing an arrangement with you. If you do not show in
such an immediate and concrete fashion what you are capable of, the buyer loses interest.
Major stakeholders in the industry include the:
Canadian Organic Growers (www.cog.ca);

Organic Agriculture Centre of Canada (www.organicagcentre.ca);
Canadian Organic Trade Association (www.ota.com/otacanada.html);
Canadian Horticultural Council (www.hortcouncil.ca);
Canadian Produce Marketing Association (www.cpma.ca);
Canadian Council of Grocery Distributors (www.ccgd.ca);
20
Canadian Federation of Independent Grocers (www.cfig.ca).
Finding a Buyer: The Canadian Importers Database is a useful tool to identify buyers who import foods
into Canada. Lists are provided by product, by city location of the buyer, and by country of origin of the
product. Finding a buyer requires perseverance and a serious commitment of time, effort, and cost. The
appointment of a good local agent or representative is crucial in this competitive environment and
exporters should note that different agents may be required to cover separate regional areas. TFO
Canada encourages exporters to use any of the following tools to help in these efforts:
Participate in trade shows in your own country or region, since buyers frequently attend these. In
addition, international shows can be an invaluable source of market intelligence. If you cannot attend
these, contact the organizers to obtain the catalogue of exhibitors, many of whom will be importers.
When attending international trade shows, be sensitive to exhibitors, who will be busy trying to sell
their own product. Introduce yourself, leave a business card and brochure with product information,
and ask if you can call them to arrange an appointment within the timeframe of your visit to discuss
what you can do. Do not try to sell on the spot at these shows; you will likely not succeed.
Consult with the trade representatives at your Embassy in Canada. They can provide help in
identifying potential Canadian importers, or may be able to direct you to an independent researcher
who could provide you with a detailed listing of interested Canadian buyers. Generally, the more
publicity you generate for your company and product, the more interest you will create in buyers.
Take advantage of a buyers personal visit to your country. The Canadian Embassy in your country or
your national export promotion office may have advance notification of such visits. Let them know that
you would like to meet with any visiting buyers in your product line and if possible, contact the buyer
directly to arrange a meeting.
Identify Canadian buyers who are listed on the internet by sector or through buyers guides compiled
by Canadian trade associations listed in the Annex.
Obtain a list of Canadian buyers who have traded with your country and contact them to offer your
products. These lists may be available from your local Chamber of Commerce or foreign trade
ministry. Directories for sale include the Retail Chains Directory and trade magazines Buyers
Guides. Provincial governments also advertise such tenders through their websites. Some of these
directories are expensive, but may be consulted without charge at Canadian public libraries while you
are on a visit here.
Contact any bi-national Chamber of Commerce existing between your country and Canada.
Use trading companies and agents (regional, national or in Canada).
Seek the assistance of your bank or freight forwarding company.
Foreign Affairs and International Trade Canada also provides information to assist non-Canadian
businesses, including information on How to Do Business with Canada; Expand or Invest in Canada; and
Find a Supplier or Partner.
Dealing with a Buyer: Importers or their agents may visit the production facilities of the supplier to
assess the suppliers capabilities, assure themselves of the quality of production facilities, and to build a
solid trading relationship. Suppliers should maintain good communication with their buyer throughout the
entire sales and after-sales process. In addition to offering value, buyers expect efficient handling of
export procedures by a supplier, as well as reliability, experience, competence, a proven ability to source
and a determined commitment to a long-term business relationship. Canadian importers have reported
that a problem in dealing with new suppliers is that they are often asked to purchase unrealistically large
minimum quantities for a market the size of Canadas. Exporters must bear in mind that the Canadian
market is about 10% the size of the U.S. market and therefore must be prepared to fulfill small orders.
At first contact with an importer in Canada, the exporter will likely be asked for samples. Send
photographs or links to them along with the samples since this is a very visually oriented sector.
Shipments must be accompanied by an Import Declaration form and any related fees for verification of
these forms. In Canada they will be assessed for compliance with regulations and quality standards. Both
containers and their contents will be examined. Canadian buyers usually perform an in-house company
21

inspection of the product to determine if it complies with stated specifications, for the companys own
satisfaction.
If the samples are acceptable, the importer
Items a buyer may cover in negotiating with a supplier include:
may place a trial order with the supplier. If
Product attributes
Ordering services
some adjustments are required, the
packaging
availability of product
importer will request new samples based
logo mould
promptness of initial delivery

on the instructions for needed changes. A
breadth of product line

availability of repeats
trial shipment which is consistent with the
quality
promptness of repeats
accepted samples and which is delivered
price range
product substitution
product exclusivity
complete or split shipments

according to an agreed-to delivery
country exclusivity
order revision
schedule may then be sent to Canada. The
special arrangements
reliability of shipping direct to Canada

importer generally advises the supplier of
the sizes and styles that should sell best in Canada and on the condition that the product should arrive in
this country. The importer uses samples to assess the interest of wholesalers and retailers in carrying the
product. Exporters should bear in mind potential competition from suppliers in the United States and
Mexico. Canadian importers are aware of the advantages of purchasing from North American suppliers
lower transportation costs, shorter delivery and lead times and simpler payment mechanisms. These
exporters are also usually very familiar with the Canadian market and business norms. Exporters should
consider these facts when setting prices and evaluating business practices.
Import terms vary with individual importers. In general, quotations should be made f.o.b. foreign port,
including packaging, but may be requested c.i.f. to a named warehouse. Payment for imports from
traditional suppliers is generally cash against documents. The majority of Canadian importers will not
work with Letters of Credit but may select other credit formats and terms that would suit both parties.
Contracts often include a clause stating that the goods must be inspected and signed off in-country by the
buyer or agent prior to shipping. The importer usually requests a guarantee to be included in the contract
against hidden quality defects.
Please note that consignment terms are illegal in Canada and are strictly enforced by the CFIA. However,
there is one exception to this rule: if exporters are members of the Fruit and Vegetable Dispute
Resolution Corporation (www.fvdrc.com), they are allowed to ship on consignment terms. All commodities
must carry a price, the value of which may be previously decided between a receiver and a shipper. The
Anti-Consignment Selling Regulations are strictly enforced, and Canadian produce importers must
present a completed and signed Confirmation of Sale (COS) form to the Canada Border Services Agency
before a shipment is released. No other document is acceptable as a substitute and the load will be held
until a COS is presented. Information on this form should include product description, details of the sale,
names and addresses of buyer and seller, and evidence that the dealer purchased or had an agreement
to purchase the product. This document is used in place of the customs invoice. Once an imported
product has established a reputation for high quality, a brand name and trademark should be adopted.
Such identification is important so that customers can easily recognize the product and know that it
represents good value.
Dealing with Non-Payment: Exporters could take certain steps to prevent disputes from occurring, or to
seek recourse if this is inevitable. One very simple, inexpensive but very effective legal tip that could
provide the winning edge in court is to have all the signatures on important contracts or agreements
notarized (acknowledged by a notary public). You should also screen your clients check their reviews
and credit rating through the Better Business Bureau (http://www.bbb.org/canada/Find-BusinessReviews/). A credit report can be a useful tool to assess the credit worthiness of the potential client and to
help you to set credit terms for the contract. For a fee, companies such as Dunn and Bradstreet Canada
(www.dnb.ca) can also assist with this task. Suggestions are also offered by several websites; some
practical ideas from these sites are highlighted here for your consideration: Forbes
(http://www.forbes.com/sites/sundaysteinkirchner/2012/05/22/what-to-do-when-a-client-doesnt-pay/) and
Geekpreneur (http://www.geekpreneur.com/what-to-do-when-your-client-doesnt-pay) offer the following
suggestions, which could be adapted to each exporters situation:
22

1) Standardize your business practices: Draw up a contract for every job, every client, every time. A
contract should include a description of the work, payment information, and payment schedule. Insert
milestones to break the payment into When exporting to Canada, you need to assess both the value of the sale
installments. Clients rarely argue with relative to your total business, and the credit standing and record of the
these, especially when they also include Canadian buyer. Requesting bank references from your buyer is standard
milestones for delivery. Decide how to practice. Be wary if the buyer is hesitant about providing these. Although
accept payment many professionals some exporters can use services provided by a government-backed
suggest taking a down-payment (up to export insurance agency to insure shipments for a premium, it may be
necessary to rely on your countrys diplomatic or commercial
50%) before the start of any project, and
representatives to conduct credit checks on a Canadian buyer. These
collecting the balance upon completion, representatives may also be able to supply names of reputable debt
before turning over any goods or services collection agencies if your buyer fails to pay.
to your client.
2) Take action: Bill your clients on time and address non-payment immediately. When you send your
invoice, include a date by which payment should be made. Once that date passes, send a reminder.
If you need to remind a client to make a payment, it is possible that they just forgot, but there is also a
good chance that something has gone wrong. You need to discover what is causing the hold-up and
see if theres anything you can do to unblock the payment. Send the reminder but also send the client
a polite e-mail, asking if they have any questions.
3) Negotiate changes and terms: In most cases, the reminder will be enough to prompt payment.
Individuals can forget or may be waiting for a payment to come in before they can send another one
out, and the accounting department of small firms may be too busy to reach your invoice at the right
moment. A gentle nudge is usually enough at those times to receive your money without damaging
your professional relationship.
Price
Since the Canadian market is relatively small, Canadian importers attempt to obtain exclusive importing
rights for the specific items they agree to import. For large production ranges, it is customary to allow
some price discount (5% to 10%) which enables the retailer to cover their operating costs and maintain a
reasonable gross margin. The exporter may also be requested to provide rebates as a result of poor
product quality, damage before or during shipping or late delivery. An exporter may initiate special terms
which allow the exporter to shift warehousing or inventory costs over to the retailers. Large volume orders
may accompany these terms.
According to Neilson Canada, consumers look at more than price when determining value; they also think
about the benefits obtained from the product. If they believe a product with a high price will bring them
great benefits and satisfaction, they will tend to choose that product over a cheaper one that would not
offer them as much benefit.
Although Canadian consumers are relatively price conscious, they are prepared to pay higher prices for
high quality. However, these prices must still be competitive to the alternatives produced in Canada, the
U.S. and Mexico. Retail prices on organic fruits and vegetables are available through:
http://www.certifiedorganic.bc.ca/rcbtoa/services/prices.html#other. While not specific to organic foods,
the Industry Price Index published by Statistics Canada (http://www.statcan.gc.ca/pub/62-011x/2013004/t050-eng.htm) indicates that prices have increased between 2009 and 2013, particularly for
fruits, vegetables and other food products where the price index rose from 117 to 129. For meat, fish and
dairy products, the price index rose less dramatically, from 104 to 111 over the same period. Traditionally,
wholesalers margins are about 30% of the wholesale price, while retailers usually operate on a 30-40%
margin. Importers margins are generally 10%. In the case of problem loads, a commission previously
negotiated between the supplier and importer may be charged and can range anywhere between 12.5%
and 18.5% of the selling price. The exporter may also be requested to provide rebates as a result of poor
product quality, damage before or during shipping or late delivery. For large volumes, exporters may
initiate special terms which allow them to shift warehousing or inventory costs over to the retailers.
23
Packaging and Transportation
All imports must be packaged in a container

in such a manner as to prevent the product
from becoming infested or from spreading a
pest. While awaiting shipment, dunnage,
pallets, crating, or other packaging
materials must be stored in a fashion that
will prevent such infestation.
Besides trucking, imports enter Canada mainly by sea, generally in

20-40 containerized units. Small shipments are usually given to
consolidators who build container loads (LCL). Requirements for
customs documentation (invoice, certificate of origin, fumigation
record, import declaration form, etc.) are detailed by the Canada
Border Services Agency. Since the rate of duty depends on the origin
of the product, the certificate of origin is crucial for both exporter and importer. A separate TFO Canada
information sheet on shipping routes and logistical information will be available in the near future.
Outer Packaging: The design, dimensions and specifications of optimal packaging vary according to the
type of produce, method of transportation and trade preferences. In general, high-grade soft fruits and
vegetables should be packed in single-layer wooden or cardboard boxes or in boxes containing thin
plastic trays molded to hold each item individually. The cases should protect produce from damage and
should have adequate ventilation (too much ventilation would result in wilting). Efforts to pack produce
carefully and as soon as possible after harvest will result in less waste and higher profits for producers.
In general, packing cases must be labelled in English and French with the following information:
product name and type: for apples and

pears, the name of the product, along with
the variety, must be on the case label;
weight of case in pounds and kilograms and
the number of items per container;
grade (if applicable);
size of box;
country (and region if applicable) of origin;

name and address of manufacturer or exporter
to allow easy trace-back in case of problems
this is critical for organic foods;
UPC/PLU or other bar code, identical to the one
on the individual products;
lot number (to identify individual shipments).
There should be consistency of packaging and package sizes, an

orderly loading of containers, shipping marks on the master pack and
article numbers on the inner packs. Shipping containers must be
clearly stamped or stencilled on a minimum of two sides with all code
markings, and in food grade and waterproof ink. Since buyers
Continuity of supply is a key factor in the
importers, wholesalers and retailers
generally use the same packaging to ship products out of their
commitment to marketing imported goods in warehouse, the packages should be sturdy enough for multiple
Canada. Sporadic shipments will damage
handling. Reusable rather than disposable packaging also addresses
the exporters reputation and chance of
environmental concerns. Proper packaging is vital since sub-standard
success in Canada.
packaging may damage the product and create problems for the
importer in clearing and marketing the goods. The importer will then refuse to do further business with
that supplier.
Consistency in quality and delivery of the
product with ordered specifications are
crucial to maintaining Canadian orders.
Wooden Crates: Potential pest infestation by wood packaging material and dunnage is controlled by the
CFIA (www.inspection.gc.ca/english/plaveg/for/cwpc/wdpkgqae.shtml). As of April 2013, the Asian Longhorned Beetle was eradicated from Canada. This means that tree materials, including nursery stock,
trees, logs, lumber, wood, and bark chips from tree species that are susceptible to the Asian Long-horned
Beetle, may once again be freely moved out of, or through, previously infested areas.
Containers for Canned and Bottled Fruits and Vegetables: Impeccable material should be used for
cans so that even in the case of long storage and aggressive contents such as tomatoes and asparagus,
there is no danger of metal leaching from the can into the contents. The tin content presently permitted in
Canada is 250 ppm. Preferably, cans with interior enamel or plastic coatings should be used. This coating
must adhere well to the metal so that it does not flake off and mix with the contents. If the coating peels
off, the product is deemed to be tainted and must be destroyed. When jars are used, they should be fitted
with easy-to-open lids such as twist-off/Omnia. Recyclable plastic packaging is popular in Canada since it
is lighter, costs less to transport and is unbreakable. Use of new and environmentally friendly packaging
materials should be explored for this market as outlined earlier in the Trends section of this report.
24

Acceptable sizes of containers for specific food products are listed in the Processed Food Regulations,
the most popular being the 398 ml (14 fl. oz.) and 540 ml (18 fl. oz.) for retail sales and 2.8 l (100 fl. oz.)
for industrial and catering use. Two piece cans with less exposed seams are most favoured by importers.
Containers for Frozen Fruits and Vegetables: Opaque plastic bags, many with zip-lock resealable
closures in 500 g and 1 kg sizes are the most popular containers for frozen vegetables. Smaller portions
(250 g) are generally packed in sealed plastic bags within a decorative cardboard box. While some frozen
fruits are still packed in 3-piece containers of heavy duty, foil lined cardboard with coated metal lids on the
top and bottom, an increasing number are being packaged in 500 g and 1 kg clear plastic bags or in
opaque, attractively designed stand-up freezer bags in 250 g and 500 g packages.
Retail Packaging: Attractive, appropriate and appealing retail packaging is important and suppliers
should consult the Canadian buyer on this subject. This applies to both bulk and individual packs.
Creative packaging may make the product more attractive for gifts. Recently, packaged-food makers
have been increasingly using pouches instead of bottles to save on packaging and shipping costs. A well
designed pouch with see-through windows and attractive artwork offers a modern and premium image.
Space for labelling as required by Canadian regulations should be made available on the package and
UPC/PLU codes included on all retail packages. Experts in Canada can provide designs, artwork,
translations and send over final film for printing in your country, which is often more economical than
printing in Canada. Your buyer can assist you with these details. Information on packaging regulations
should be obtained from the Canadian Food Inspection Agency prior to shipment to Canada. A database
of acceptable packaging materials and non-food chemical products is available for reference.
The province of Qubec has additional
requirements concerning the use of the
French language on all products
marketed within its jurisdiction. Details
on labelling instructions can be obtained
through your buyer.
Labelling
Labels on imports must conform to Canadian standards. Exporters should consult with
and have the buyer approve drafts prior to printing. If any requirement of the Canadian
labelling regulations is missing, the goods cannot be sold. Exchanging or attaching
additional labels is time consuming and expensive. Imports bearing a description in a foreign language must have a separate
label in English and French which complies with labelling regulations. The importer in this case is responsible for the labelling.
Pictures and illustrations on the label must correspond to the contents of the package. Ingredients not contained in the product
cannot be shown. Note that U.S. recommended daily allowance (RDA) labels are not accepted here since the RDA differs in the
two countries.
Once accredited and certified, organic products must be labelled according to the Organic Products
Regulations, details of which are provided at: http://www.inspection.gc.ca/food/organic-products/labellingand-general-information/questions-and-answers/eng/1328081798738/1328081871795. Exporters should
note that the 100% organic claim is not permitted in Canada. Only products with organic content that is
greater than or equal to 95% may be labelled as organic or bear the organic logo. These products must
be certified and the name of the Certification Body must appear on the label. Multi-ingredient products
with 70-95% organic content may have the declaration: contains x% organic ingredients. These
products may not use the organic logo and/or the claim organic. Multi-ingredient products with less than
70% organic content may only contain organic claims in the products ingredient list. These products do
not require certification and may not use the organic logo. However, the organic ingredients contained
within these products must be certified.
For retail food packages in general, information regarding the nature of the product, contents, weight,
composition, grade (if applicable) and producer must be provided. The CFIA Guide to Food Labelling and
Advertising (www.inspection.gc.ca/english/fssa/labeti/guide/toce.shtml) provides information on labelling
and advertising requirements, policies and guidelines dealing with specific products, statements and
25

claims made for foods5. The label must be conspicuous and the lettering designed according to
prescribed minimum size letters and numerals. The following should be shown in English and French:
name and head office address of the

importer in Canada to allow easy trace-back
in case of problems this is critical for
organic foods;
name or description of the contents, including
any additives and preservatives;
for apples and pears, the name of the
product ,along with the variety, must be on
the case label;
grade name established in the country of
origin;
product of . . . (country name);
quantity of the contents in Canadian weights
and measures (metric net quantity); state the
minimum guaranteed weight if the exact one
is difficult to specify;
use-by date on ready-to-eat, minimally

processed produce and expiry date if the shelf
life is 90 days or less;
UPC, PLU (price look-up code for retail sales)
and other bar codes as required;
food irradiation declaration (amended in 1997,
the regulations state that the two aspects of food
irradiation which are subject to federal controls
are safety and labelling. Irradiation is allowed for
specific products to inhibit sprouting during
storage, to control insect infestation in stored
food and to reduce microbial load).
Attractive labels deliver results! To enhance appeal to the consumer, an attractive picture of a serving of
the product is recommended, with the words Serving Suggestion shown in English and French. For
exotic products, a simple recipe provides the consumer with information needed to try the item. Strong
label colours assist in product recognition and impart a premium look. Products which are imported for
further processing in Canada may be deemed Product of Canada if they are finished here and contain at
least 51% Canadian content calculated in relation to the products total direct labour and/or material cost.
Individual provinces may have different requirements for such labelling.
Test Market Foods: A test market food must comply with current legislation in all respects, except for the
bilingual labelling requirement and standardized container sizes. By regulation, for a food to be granted a
Test Market Food status, it must never have been sold in Canada in that form and must differ
substantially from any other food sold in Canada with
Crackers
respect to its composition, function, state or packaging form.
Nutrition Facts
It may be a food for which a manufacturer or distributor has
Per 4 crackers (20g)
been issued a Temporary Marketing Authorization Letter
Amount
% Daily Value
(under the Food and Drugs Regulations). A dealer must, six
Calories 90
5%
weeks prior to conducting the test market, file a Notice of
Fat 3 g
8%
Saturated 0.5 g
Intention to Test Market in the prescribed form and manner.
Allergies: Ingredients that can cause allergic reactions
should be declared on the label and identified by their
common names to allow consumers to easily recognize
them. The priority allergens in Canada are nuts, sesame
seeds, milk, eggs, seafood, soy, wheat and sulphites. A
precautionary labelling policy, e.g., may contain nuts, is
already in place. Such labelling must be truthful and not take
the place of good manufacturing practices. Health Canada
has created a tool called the interactive nutrition label to help
consumers learn how to use nutrition information to make
more informed choices about the foods they buy. The
adjacent sample label is from a box of crackers (a type of
biscuit, usually salted or savory).
+ Trans 1 g
Cholesterol 0 mg
Sodium 130 mg
5%
Carbohydrate 14 g
5%
Fibre 2 g
8%
Sugars 2 g
Protein 2 g
Vitamin A 0%
Vitamin C 0%
Calcium 0%
Iron 4%
Ingredients: Whole wheat, vegetable oil, shortening,
salt
Fresh fruit and vegetables are exempt from Health Canadas regulations to standardize the presentation and content
of nutrition information on food labels in the form of a Nutrition Facts Box.
5
26
Neilson Canada has tracked the number

of claims on food products between
2005 and 2009 and as shown in the
adjacent chart, the results indicate the
changing
priorities
of
Canadian
consumers over time. Recently, claims
for environmentally friendly packaging,
kosher,
premium,
gluten-free,
microwaveable, and no/low/reduced
sugar have been on the rise.
If any requirement of the Canadian
labelling regulations is missing, the
goods cannot be sold. Importers have
reported that a major cause of delay in
release of imports is poor or improper
labels applied by the supplier. The
importer then has to deal with relabelling and although the product may
eventually be released for sale by the
inspectors, these delays could cause the
importer to miss deadlines and valuable
opportunities for sales. Such labelling
problems could therefore end your
relationship with a buyer before it has had a chance to develop. In serious cases, non-conforming
shipments may be destroyed or ordered removed from Canada. Exporters should thus consult with and
have the buyer approve drafts of labels prior to printing.
27
Distribution
In 2012, organic foods were sold in Canada through the following outlets:
According to the Organic Trade Association,

between 2006 and 2012, sales of organic food
and beverages in mainstream stores almost
tripled, with most sales registered for organic
fruit and vegetables, and customers buying the
most organic foods in British Colombia and
Alberta, followed by Ontario. The adjacent chart
shows the market share of organic food sales
by region in Canada.
Organic grocery, excl. alcohol Organic fresh fruit
Organic fresh vegetables Organic fresh meat
Improvements by Grocery Stores

A difficult operating environment strongly affected many non-grocery retailers, which experienced a much
slower recovery in 2012. Grocery retailers, on the other end, witnessed healthier growth, albeit relatively
slow due to the ongoing tendency to actively promote and offer discounts to drive customer traffic.
Foodservice in Canada witnessed a slower than expected recovery, and cooking at home remains a
28

better option for many Canadians. Grocery retailers, however, were also active in improving stores and
food products beyond just discounting practices. A new flagship Loblaws store in Torontos historic Maple
Leaf Gardens is a case in point, with strong emphasis on gourmet foods such as cheese, in-store pastries
and bakery, and other options to attract customers who are not necessarily looking for bargains.
Additionally, ethnic supermarkets, organic food stores such as Whole Foods, and high-end grocery
retailers have recently opened, or are planning to open, more stores in Canada.
A report in Canadian Business shows that
domestically-owned firms dominate the food
retail market in Canada. Loblaw, Metro and
Sobeys have over 2,600 stores employing almost
250,000 people across the country. Metro is
concentrated in Ontario and Qubec while
Loblaw and Sobeys are in every province. Their
total revenue of $58.2 billion (a small portion of
which comes from drug store sales) comprises
about 67% of Canadas retail food and
convenience store sales. U.S.-owned Safeway,
which is mainly located in Western Canada, adds
another $6.2 billion (7%), and Costco, which is
classified as a general merchandise store, has
approximate food sales of $4 billion. Another Canadian firm, Alimentation Couche-Tard, took $2.1 billion
of Canadian convenience store revenue as well as $14.8 billion of gas and convenience store sales in the
United States.
The primary market areas in Canada are Toronto, Montreal and Vancouver. Consolidation of shipments
to these cities is a common feature of distribution, which is essentially
Retailers source their products through
based on delivery from producer/exporter to broker, to importer,
a combination of:
wholesaler and finally to retailers. Distributors must have a site licence,
Trade shows (91%)
Sales representatives (60%)

maintain proper distribution records, and have proper procedures for
Trade magazines (35%)

product recalls and for the handling, storage and delivery of their
Other retailers (32%)

products. In addition to the regular importer, there are a few companies
Websites (28%)
that have several functions such as producing, importing, reprocessing,
wholesaling, repackaging and even re-exporting foods. In general, these companies undertake a
considerable amount of work to improve the quality of or adapt their products to meet market demands.
A few manufacturers will service two or even three regions, but are unlikely to cover the entire country.
Often, complete coverage of the consumer market requires representation in the various regions of
Canada. Toronto, the largest metropolitan area and commercial center of the country, is usually the most
logical location for establishing sole representation. From a regional perspective, the country may be
divided geographically into five distinct markets, plus the territories. These are:
The Atlantic Provinces: New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and
Labrador (2.4 million persons);
The Province of Qubec (8 million persons);
The Province of Ontario (13.5 million persons);
The Prairie Provinces: Manitoba and Saskatchewan (2.3 million persons);
The Western Provinces: Alberta and British Columbia (8.5 million persons); and
The Territories: Yukon, the Northwest Territories, and Nunavut (0.1 million persons).
Establishing representation in each of these markets provides optimal coverage and the ability to target
promotional programs to suit specialized market needs. Value for dollar is the predominant purchasing
determinant in both the consumer and industrial markets. Further information on food distributors is
available
through
the
Organic
Trade
Association
directory
of
retail
stores
(http://www.theorganicpages.com/topo/commercialactivity.html?ca=retailstores); Canadian Council of
29

Grocery Distributors (www.ccgd.ca); the Canadian Restaurant and Foodservice
(www.crfa.ca); and the Canadian Federation of Independent Grocers (www.cfig.ca).
Association
Producer/Exporter: A co-operative organization (formed either by producers within a single country or by

exporting countries in a geographical region) would be a good vehicle for developing an export trade
relationship with Canada. Such an organization would allow producers to work together to improve
handling and distribution; set up adequate processing facilities; develop quality targets; develop a grading
system; gain access to suitable transport (through increased volume); and establish a brand name or
trademark. Specialized personnel could also be hired to give advice on new technologies and processing
methods and to conduct marketing activities. Initially, member producers should concentrate on exporting
those items with the best market potential and/or those in which they have a strong comparative
advantage. Then, as the organization gains experience and proficiency and market conditions warrant it,
the range of products could be expanded. Two main benefits are to be derived from establishing a
grading system:
1) Standards provide a direct incentive for growers to improve the quality of their produce. If a grower's
produce must meet certain standards before they can be allowed to be exported, more attention will
be paid to handling practices, stage of maturity at harvest and overall product condition.
2) To make sure that the grade standards will be binding on all producers, an expert and reliable
inspection service is needed. This service should be supported by the government, since it will then
have the authority to reject sub-standard products.
The most basic standards are those for size, weight, quality and case content. Specific weight and size
categories should be selected, standardized and enforced by the government or an exporting
organization. In general, two to five categories are sufficient for each fruit or vegetable. It is advisable to
allow no more than a 10% deviation from the average size and weight allowed for each category. Once
sorted and packed, the size and number shipped in the case should be indicated on the outside of the
case. Quality standards are the most difficult to establish because of the wide range of attributes that
affect quality. To keep grades easy to use, therefore, it may be impractical to go beyond standardization
by variety, colour, maturity, external damage and shape. Quality grades should be established so that a
reasonable quantity of each grade is available and so that the total supply marketed is not broken up into
too many categories. Again, two to five categories are sufficient for most fruits and vegetables. Case
content for each fruit and vegetable should also be standardized. It is best to adopt a fixed weight per
case and indicate the number of items per case and their approximate size and weight. Initially, member
producers should concentrate on exporting those items with the best market potential and/or those in
which they have a strong comparative advantage. Then, as the organization gains experience and
proficiency and market conditions warrant it, the range of products could be expanded. By coordinating
activities in this way, a strong position could be established on the Canadian market. However, it should
be noted that poorly managed co-operatives can have a negative effect, especially when many small
producers are involved. Canadian importers are, in fact, wary of such co-operatives since many have had
the experience of receiving shipments of inconsistent quality. In such circumstances, trade will be
suspended.
Broker: Brokers are often used either by the exporter or the importer. The broker charges a fee for his
work but cannot take title to the goods. In some cases, a dealer holding a broker permit could, if declared
at the time of the transaction and indicated on the Confirmation of Sale (COS), take title to the goods and
work for a profit. In this case, a brokerage fee cannot be charged since a dealer cannot take both profit
and a brokerage fee. Other types of brokers could also be used in transit countries to secure needed
documentation and services.
Importers and Agents: Once you have shown a potential buyer what you are capable of producing and
they express an interest in taking the relationship further, it is considered normal and prudent to request
references from the buyer or agent. Take the time to follow up on these to avoid potential problems in any
30

future dealings with the importer. Importers and agents have an extensive knowledge of the trade network
and account for a large portion of imports from TFO Canadas client countries. They are generally more
willing to take the risks involved in dealing with new suppliers. They are, however, likely to subject
suppliers to careful study before doing business. They expect references and will want to know about the
suppliers export experience, financial standing, and other such details. Exporters who do not supply
references will likely not be well-received. Importers/agents are also more aware of potential problems
that may arise in meeting Canadian requirements for quality, etc., and might be willing to assist suppliers
with hints on adapting the product, providing labels to assist in penetrating the Canadian market, and
providing production order guarantees to allow the factory to plan labour and materials.
31
Import Regulations
Organic products sold in Canada are subject to the Organic Products Regulations, the Consumer
Packaging and Labelling Regulations, and the Food and Drug Regulations. Suppliers of products bearing
organic claims will be expected to demonstrate that the product is organic. All organic products bearing
the organic logo or represented as organic in interprovincial and international trade must comply with the
Organic Products Regulations.
The Canadian Food Inspection Agency (CFIA) Processed Products Program is responsible for the
following activities:
additive and contaminant sampling;

audits and accreditation;
chemical residue sampling;
container integrity inspection;
establishment registration;
export certification;
investigations resulting from complaints and
inspections;
health and safety inspections of establishments

and products;
implementation of the Hazard Analysis Critical
Control Points (HACCP) Program;
microbiological sampling; and
monitoring of container size, grades and
standards, ingredients, labels and net quantity.
The following websites provide technical import information:
Guide to Importing Food Products Commercially:

www.inspection.gc.ca/english/fssa/imp/guide1e.shtml
Processed Products Establishment Inspection Manual
www.inspection.gc.ca/english/fssa/protra/protrae.shtml
Labelling Guide for Processed Fruits and Vegetables
www.inspection.gc.ca/english/fssa/labeti/guide/tab11e.shtml
Compliance rates for labelling, standard/composition verification, net quantity, and container integrity
have all increased in recent years, with the number of detentions issued for imported processed products
declining by 20%. This is primarily due to better importing practices and better sharing of information
between CFIA and importers, including internet postings of guidance documents for importers, issuance
of letters to address specific issues related to imported food products, and better communication of
information through embassies. The CFIA also works with exporting countries to improve compliance of
imported goods with Canadian federal acts and regulations. The CFIAs Automated Import Reference
System (AIRS), available on the internet at http://airs-sari.inspection.gc.ca, provides accurate and timely
information on import requirements based on a products Harmonized System (HS) Code, origin,
destination and end use.
Inspection
If an importer in Canada has received a shipment in a deteriorated condition or has agreed to handle
product in a deteriorated condition, that importer is legally required to request an inspection from the CFIA
within 24 hours of reception. This is to help determine the responsibility for the condition of the load so
that a fair settlement may be made between the shipper and receiver 6. At any time, the CFIA may
randomly inspect any food product to ensure that minimum requirements (grade, labelling, containers and
The CFIA and the Canada Customs and Revenue Agency (CCRA) have established three regional Import Service Centres in Montreal,
Toronto and Vancouver to more systematically handle importers requests for documentation.
6
32

health standards) are met. Non-compliant product will be detained until it meets regulatory requirements,
or, if imported, may be ordered out of the country or destroyed. A fee is charged for inspections other
than monitoring inspections. For certain products, an inspection certificate is required, indicating that
minimum import requirements for quality, labelling and packaging are met. A CFIA inspection certificate is
compulsory for apples, onions and potatoes imported from countries other than the United States. Details
are available from:
www.inspection.gc.ca/english/fssa/orgbio/orgbioe.shtml (organic foods);

www.inspection.gc.ca/english/fssa/frefra/cdnreqe.shtml (Canadian import, export and inter-provincial
requirements for fresh fruit and vegetables);
www.inspection.gc.ca/english/fssa/frefra/frefrae.shtml (fresh fruits and vegetables);
www.inspection.gc.ca/english/fssa/frefra/impe.shtml (country specific regulations such as:
Guatemalas Fresh Raspberries and Blackberries; Mexicos Cantaloupes; U.S. and Californias Leafy
Green Vegetables).
Tariff Rates
The purpose of duties levied on produce entering Canada is to
protect Canadian producers during their short growing season, not
to generate revenue. Tariffs, therefore, fall only on imported
produce of a kind and variety which is grown in commercial volume
in Canada. A notable exception to this ruling is apples, on which
there is no duty. Any other fruits and vegetables can be imported
duty-free. Tariffs on organic foods range from $4.94/tonne for
organic potatoes to zero for all other organic vegetables. Tariffs on
individual products by HS Code for 2013 are available through the
Canada Border Services Agency (CBSA). Non-conforming products
may be permitted when there is a shortage in the available supply
from domestic production.
Important Changes to GPT

Set to expire in 2014, the Government of
Canada is proposing a change in the
eligibility of certain countries and an
extension of the GPT for others. The
proposed changes are intended to reflect
significant shifts in the income levels and
trade competitiveness of certain
developing countries. More information,
along with lists of proposed eligible
countries, is available by scrolling through
the archived page at:
http://www.gazette.gc.ca/rppr/p1/2012/2012-12-22/html/notice-aviseng.html.
Only the Federal Government may impose duties on goods and services entering Canada; provincial
governments are constitutionally prohibited from doing so. All products entering Canada must be reported
to the CBSA, the federal agency responsible for compliance with Canadas borders legislation. The
importer, using information from the supplier, must provide a thorough description of the goods, including
the ten-digit Harmonized System Codes, and know their value and origin. CBSA can then provide advice
on the appropriate valuation method, classification, and treatment. This is usually done at the point of
entry by a customs broker representing the importer, or by the importer in person. Generally, the goods
are released immediately upon presentation of minimum required documentation. Within a few days
either the importer or the broker must present the final customs documents and pay any duties and taxes
owing. To facilitate the clearance of goods, exporters must ensure that the documentation provided to
importers is timely and complete.
The rate at which duties are assessed depends on the tariff treatment given by Canada to the country
from which imports originate. The tariff treatment can be affected by the origin of raw materials and
components, and includes the Most Favoured Nation Tariff (MFN) for all members of the World Trade
Organization (WTO) and countries enjoying bilateral agreements with Goods which are eligible for reduced rates
Canada; the Commonwealth Caribbean Countries Tariff; the Least of duty under the LDCT may enter
Developed Country Tariff (LDCT); preferential tariff treatment under Canada duty free when, as a general rule,
various free trade agreements; and the General Preferential Tariff at least 20% of the ex-factory price
(GPT) for developing countries. To qualify for any of these tariffs, originates from one or more LDCT country
exporting companies must complete a Certificate of Origin and and 20% from an LDCT or GPT country.
provide import declaration forms for use by Canadian Government inspectors. Remember that an
accurate identification of the origin of the product is vital to ensuring that the most favourable tariff rate is
applied to your product.
33

Under the Market Access Initiative, Canada has eliminated all duties and quotas on most imports from 48
LDCs (least developed countries) except for dairy, poultry and egg products, which remain subject to
duties and quotas. Note that an accurate identification of the origin of the product is vital to ensuring that
the most favourable tariff rate is applied to your product.
Some imported fresh fruit and vegetables, including root crops from
some countries are subject to plant protection requirements such as a
phytosanitary certificate or a permit to import. In other cases, the
product may simply be refused entry into Canada until a pest risk
assessment has been completed. Root crops such as yams and
cassava must be shipped in clean containers made of new material, and
be completely free from soil. Fruits and vegetables which enter Canada
via the United States southern ports (e.g., Miami, thence by road) are likely to be fumigated by the U.S.
authorities, because the U.S. Department of Agriculture (USDA) is concerned about tropical diseases and
pests. To avoid a delay or refusal at the border, importers generally contact the CFIA prior to ordering the
shipment. USDA inspection certificates are required on bulk shipments of apples, onions, and potatoes.
A dump certificate must be obtained
when more than 5% of a lot is
dumped. The receiver must then
market the damaged or deteriorated
products as soon as possible to
reduce the level of loss.
Further details on import documentation and regulations relating to Canada are provided at: www.cbsaasfc.gc.ca/import/menu-eng.html. This site includes information on:
tariffs applied to specific products by country of origin:

country of origin marking rules and certificates of origin;
regulations relating to free trade agreements; and
rules of origin relating to Most Favoured Nation Tariff, General Preferential Tariff, and Least
Developed Country Tariff.
Licensing
Everyone engaged in the trade of fresh produce inter-provincially and internationally must be licensed
with the CFIA and/or a member of the Dispute Resolution Corporation (DRC). This includes Canadian
dealers, brokers and commission merchants. The type of license issued depends on the primary type of
business the applicant is involved in. The holding of a license must be verified before trading with any
importer as it serves as an important protection for the exporter. A license is normally valid for one year
from the date of issue. This license is subject to suspension or cancellation if the holder of the license
does not comply with regulations. To determine if an importer is licensed, the exporter should contact the
CFIA (www.inspection.gc.ca/english/fssa/frefra/cdnreqe.shtml#a) or the DRC (www.fvdrc.com). If the
Canadian importer is not licensed, the exporter will not have access to the DRC, which offers a valuable
dispute settling service.
Relevant Canadian Laws and Regulations

Depending on the product, detailed regulations relating to the importation and sale of processed foods
are accessible though the Canadian Food Inspection Agency. These include the following regulations
under the Canada Agricultural Products Act:
Consumer Packaging and Labelling

Regulations);
Customs Tariffs Act
Food and Drugs Act
Fresh Fruit and Vegetable Regulations
Licensing and Arbitration Regulations
Act
(and
Livestock and Poultry Carcass

Regulations
Organic Product Regulations
Processed Egg Regulations
Processed Products Regulations
Grading
Canadas laws relating to food regulations are available at: http://laws.justice.gc.ca/en/showtdm/cs/F-27.
Taxes
The federal government imposes a 5% percent Goods and Services Tax (GST) on almost all goods and
services sold here. Only food sold in grocery stores, medical and dental services and a few others are
34

exempt. Since 2010, Ontario replaced the provincial sales tax and the federal GST with a harmonized
sales tax (HST). The HST is applied on most supplies of goods and services made in Ontario at a rate of
13%, consisting of the 5% federal portion and an 8% provincial portion. An HST is also in place for the
Atlantic provinces.
Imports are subject to GST or the federal part of HST with some exceptions. For example, goods
imported by manufacturing service companies to be processed for non-residents and later exported
without being used in Canada are considered a non-taxable import. An input tax credit can also be
claimed in some circumstances. GST/HST is calculated on the Canadian dollar value of the goods,
including duty and excise tax, and is collected at the border at the same time as these duties. The
importer of record is responsible for paying the tax on imported goods. Details are available through the
Canada Revenue Agency at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/mprtsxprts/mprtdgdseng.html and http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl.
Antidumping
Through CBSA exporters could access information relating to:
Anti-Dumping and Countervailing;

International Events in Canada;
Postal and courier programs;
Useful tools and a simplified step-by-step approach to importing;
Customs Interest Calculation Program;
Forms and publications for importers.
35
Tips for Exporters
The Canadian market is extremely competitive. Exporters should note that any failure on their part to give
buyers excellent service will result in the buyer quickly turning to other suppliers. The following are
important factors in establishing your reputation for reliability:
Establish an attractive, easy to navigate and informative website with contact links to your e-mail.
Always include links to your website in any communication with the buyer.
Check your e-mail constantly! Ensure that you respond within one business day to any e-mails you
receive from suppliers with the information they have requested. This immediately shows the potential
buyer, who gets many of these offers each week, what you are capable of. Buyers who cannot readily
contact an exporter will quickly turn to other sources of supply. Send an interim note if information is
not immediately available. Give a reasonable date for when all the information would be ready and
honour that date. Since Canada is divided into different time zones, e.g., Vancouver is three hours
behind Toronto; communication with a buyer might be at unusual hours.
The buyer looks at your sample and how you handle the request to provide concrete proof of your
capability and an example of how you would handle a potential business relationship. Ensure that you
provide the sample well within the requested timeframe and that the sample is of impressive quality
and value. This will assure the buyer that you are a viable alternative source of supply. Follow-up
orders must match the quality of this sample.
No surprises. Canadians expect delivery of the product they purchase. Unavoidable delays should be
immediately reported and justified to the buyer; ask the buyer to accept the delay.
Provide accurate information and follow up key sales calls in person as soon as possible.
Where applicable, enclose a certificate of analysis of the product and photographs of the
production/processing facilities with the letter of introduction to the importer. This certificate may be
needed to show conformity with Canadian health and safety requirements and should be obtained
from the appropriate authorities in your country.
Get to know the Canadian market and your importer. Read trade publications and visit trade shows
and retail stores in Canada to get a feel for the market.
Establish contact with trading companies or import agents since they may be the most promising
channel for new entries. Hire an agent/importer to represent you in Canada.
If you are asked for exclusive rights to your product, you should include a clause in the contract for a
minimum level of annual purchases. Be flexible and solicit feedback from your buyer on your product
and trade relations. Put all verbal agreements in writing.
Use English (or French in Qubec) in all correspondence and provide information on the product
range, capacities and price list, quoting prices in Canadian or U.S. dollars.
In addition, exporters should remain flexible and be prepared to react quickly to opportunities which may
arise unexpectedly, such as replacing a portion of the U.S./Mexico market share if there are production
setbacks in these countries. As well, given the popularity of ethnic foods in Canada, there may be
opportunities for growers to work with established ethnic food distributors to develop and distribute new
mass-appeal ethnic foods for the North American market; export ingredients for further processing or repackaging in containers more suitable to the Canadian market; and produce easy-to-prepare versions of
traditional ethnic foods. Food processors will probably choose between producing an authentic ethnic
food versus a mass-appeal version for the general marketplace. It may be possible to expand the market
for such ethnic foods by targeting similar ethnic markets in the United States. For example, the Chinese
36

American population is roughly twice the size of the entire Canadian market and many cities (Seattle, San
Francisco and Oakland) have large Asian-American populations.
Finally, if you have at least one year of export experience, be sure that you are taking full advantage of
TFO Canadas free promotional services. This includes direct promotion of your company and products to
Canadian importers via our monthly Import Info E-Newsletter and inclusion in our online searchable
database of exporters. Please check your current profile with us by signing in to our website and going to
your Exporter Profile. Ensure that all your information is correct and that you have accurately completed
Step 2 of the registration process including entering one or more of your exported products.
Note that while Step 3uploading additional information such as photos, price lists etc.is optional, we
recommend that you take the time to complete it since it serves as another free website for your products.
In the event that you are not registered with TFO Canada, please register with us by accurately
completing Steps 1 and 2, and as explained above, the optional Step 3.
37
Annex
Sources of Information
TFO Canada
56 Sparks Street, Suite 300
Ottawa, Ontario, Canada K1P 5A9
Tel.: (613) 233-3925 In Canada: 1-800-267-9674
Fax: (613) 233-7860
E-mail: tfocanada@tfocanada.ca
Canadian Snack Food Association

P.O. Box 42252, 128 Queen Street South
Mississauga, Ontario, Canada L5M 4Z0
Tel.: (289) 997-1379
Canada Border Services Agency

A directory of CBSA offices across Canada is available through
the Internet site.
Canadian Spice Association

7235 Bellshire Gate
P.O. Box 88059
Mississauga, Ontario, Canada L5N 8A0
Food and Consumer Products of Canada
100 Sheppard Ave. East, Suite 600
Toronto, Ontario, Canada M2N 6N5
Tel.:( 416) 510-8024 Fax: (416) 510-8043
Agriculture and Agri-Food Canada

1341 Baseline Road
Ottawa, Ontario K1A 0C5, Canada
Tel.: (613) 773-1000 Fax: (613) 773-1081
Fruit and Vegetable Dispute Resolution Corporation

Building 75, Central Experimental Farm
930 Carling Avenue
Ottawa, Ontario, Canada K1A 0C6
Tel.: (613) 234-0982 Fax: (613) 234-8036
Canada Organic Office (Canadian Food Inspection Agency)

1400 Merivale Road
Ottawa, Ontario, Canada K1A 0Y9
Tel.: (613) 946-7897 Fax: (613) 946-7902
Canadian Federation of Independent Grocers
2235 Sheppard Ave. E., Suite 902
Willowdale, Ontario, Canada M2J 5B5
Tel.: (416) 492-2311 Fax: (416) 492-2347
Health Canada
Office of Nutrition Policy and Promotion
Tower A, Qualicum Towers
2936 Baseline Road, 3rd Floor, A.L. 3303D
Ottawa, Ontario, Canada K1A 0K9
Tel.: (613) 957-8329
Canadian Health Food Association

235 Yorkland Blvd., Suite 302
Toronto, Ontario, Canada M2J 4Y8
Tel.: (905) 497-6939 Fax: (905) 497-3214
Canadian Horticultural Council
9 Corvus Court
Ottawa, Ontario, Canada K2E 7Z4
Tel.: (613) 226-4880 Fax: (613) 226-4497
I.E. Canada (Canadian Association of Importers and

Exporters)
Mailing Address: P.O. Box 189
Don Mills, Ontario, Canada M3C 2S2
Office Address: 10 St. Mary Street, Suite 200
Toronto, Ontario, Canada M4Y 1P9
Tel.: (416) 595-5333
Canadian Organic Growers

1145 Carling Ave, Suite 7519
Ottawa, Ontario, Canada K1Z 7K4
Tel: (613) 216-0741 Fax: 613-236-0743
Foreign Affairs, Trade and Development Canada

125 Sussex Drive
Ottawa, Ontario, Canada K1A 0G2
Tel.: (613) 944-4000 Fax: (613) 996-9709
Canadian Organic Trade Association

P.O. Box 13, Section A
Ottawa, Ontario, Canada K1N 8V1
Tel.: 613-482-1717 Fax: 613-236-0743
Organic Agricultural Centre of Canada

Dalhousie University, Faculty of Agriculture
P.O. Box 550, Truro, Nova Scotia B2N 5E3
Tel.: (902) 893-7256 Fax: (902) 896-7095
Canadian Produce Marketing Association

162 Cleopatra Drive
Ottawa, Ontario, Canada K2G 5X2
Tel.: (613) 226-4187 Fax: (613) 226-2984
38

Trade Shows
A current list of trade shows is available through TFO Canada.
Bakery Showcase
Baking Association of Canada
7895 Tranmere Dr., Ste 202
Mississauga, Ontario, Canada L5S 1V9
Tel.: (905) 405-0288 Fax: (905) 405-0993
CFRA Show, Canadian/International Food and Beverage
Show
316 Bloor Street West
Toronto, Ontario, Canada M5S 1W5
Tel: (416) 923-8416
CHFA West, CHFA Qubec, CHFA East
235 Yorkland Blvd., Suite 302
Toronto, Ontario, Canada M2J 4Y8
Tel.: (905) 497-6939 Fax: (905) 497-3214
CPMA Convention and Trade Show

162 Cleopatra Drive
Ottawa, Ontario, Canada K2G 5X2
Tel.: (613) 226-4187 Fax: (613) 226-2984
Grocery Showcase and Grocery Innovations Canada
The Canadian Federation of Independent Grocers
2235 Sheppard Ave. E., Suite 902
Willowdale, Ontario, Canada M2J 5B5
Tel.: (416)492-2311 or (416) 492-2325
Fax: (416) 492-2347
SIAL
300, rue Lo-Pariseau, suite 1100
P.O. Box 159, Place du Parc
Montral, Qubec, Canada H2X 4A4
Tel.: (514) 289-9669
Fax: (514) 289-1034
Publications
Canadian Grocer
One Mount Pleasant Road, 7th Floor
Toronto, Ontario, Canada M4Y 2Y5
Tel.: (416) 764-1673
Fax: (416) 764-1523
Organic and Wellness News

Suite 1007 - 2706 Alta Vista Drive
Ottawa, Ontario, Canada K1V 7T4
Tel.: (613) 526-6207 Fax: (613) 526-0480
Food in Canada Online Magazine

80 Valleybrook Drive
Toronto, Ontario M3B 2S9
Tel.: (416) 442-5600
Fax: (416) 510-5140
39

Organic, Ethnic, Fair Trade Foods Market in Canada

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Organic, Ethnic, Fair Trade Foods Market in Canada

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Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Although it is the second largest country in the world

Scope of the Report

Organic, Ethnic, and Fair Trade Foods

Current List of Certified Organic Commodity Import Codes, June 2013

Organic, Ethnic, and Fair Trade Foods

The Canadian Market

Sales Value ($ million)

Market Share (%)

By ethnicity: 67% non-Caucasian

Canadas Organic Market: National Highlights 2013: http://www.ota.com/pics/media_photos.171.img_filename.pdf

Organic, Ethnic, and Fair Trade Foods

By region: 66% British Columbians

Fruit & Vegetables Beverages

Growth in sales of pre-packaged organic foods between 2008 and

Annual Growth (%)

Canadas Organic Market: National Highlights 2013: http://www.ota.com/pics/media_photos.171.img_filename.pdf

Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Fair Trade Foods

Fairtrade Canada, Fairtrade International Consumer Perceptions Survey 2011

Organic, Ethnic, and Fair Trade Foods

Spices & Herbs

Organic, Ethnic, and Fair Trade Foods

Chapter 4 - Dairy Products, Eggs, Natural Honey

Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Trends and Opportunities

Organic, Ethnic, and Fair Trade Foods

Corporate Social Responsibility

Buy Local (100 mile limit)

Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Canadian businesses engaged in the importation, resale, distribution

develop an easy to use website with pictures and

adjusting to globalization by becoming niche players, specializing by product or by market;

Organic, Ethnic, and Fair Trade Foods

Bakery Showcase: Held every two years, the next one

acceptability or not of products as delivered, e.g., by

Certified to the Canadian Organic Standard;

Organic, Ethnic, and Fair Trade Foods

Certification and conformity verification

Organic, Ethnic, and Fair Trade Foods

international acceptance of your products as the system is adopted worldwide;

Based on the HACCP, the following may be used as a guide by exporters:

Organic, Ethnic, and Fair Trade Foods

Canadian Organic Growers (www.cog.ca);

Organic, Ethnic, and Fair Trade Foods

Canadian Federation of Independent Grocers (www.cfig.ca).

Organic, Ethnic, and Fair Trade Foods

promptness of initial delivery

breadth of product line

complete or split shipments

reliability of shipping direct to Canada

Organic, Ethnic, and Fair Trade Foods

Organic, Ethnic, and Fair Trade Foods

Packaging and Transportation

All imports must be packaged in a container

Besides trucking, imports enter Canada mainly by sea, generally in