March 2006

Mapping the Process - "New Product Development"

Regulations

• Agricultural entrepreneurs interested in on-farm processing must comply with various laws and regulations.
• The purpose of regulatory actions governing on-farm processing is to protect consumers, generally in two ways:
  • Regulations affecting food safety and consumer protection.
  • Regulations relating to employees.
• Regulations may be administered at the municipal, provincial or federal level.
• Regulations may vary depending on the operator's location and type of business. It is important for every agricultural entrepreneur to investigate the topic of regulations carefully.

i)    Regulations Affecting Food Safety and Consumer Protection

a)   Sanitation

• Entrepreneurs aiming to process food in the home for sale to either retailers or the public are required to meet specific regulations.
• In many situations, home kitchens are inadequate for commercial processing. It is important to contact the Provincial and/or Municipal Health Departments to ensure that your operation meets the approved standards.
• Health regulations relating to processing facilities and standards originate with both provincial and local authorities.
• Public health inspectors inspect commercially approved facilities. In addition, health inspectors investigate potential health hazards and respond to complaints.
• The City of Winnipeg has a parallel guide to the Food and Food Handling Establishments Regulations (MR 339/88R), but city licensing and by-laws may have additional requirements within the city. Contact the City of Winnipeg Environmental Health Services at 986-2443.

b)   Food Safety

• The Food and Drug Act ensures the consumer receives safe food. The department is responsible for the investigation of safe additive levels, food safety, microbiological quality, in addition to other health hazards.

Additional Information:
Health Canada
Health Protection Branch
Central Region
510 Lagimodiere Blvd.
Winnipeg, MB R2J 3Y1
Ph (204) 983-5490
Fax (204) 983-5547

c)    Labelling

• Labelling regulations prevent fraud, and provide product information to consumers.
• The Consumer Products Branch of Industry Canada administers the Consumer Packaging and Labelling Act and Regulations

Additional Information:
Agriculture and Agri-Food Canada
Food Production and Inspection Branch
269 Main Street
Winnipeg, MB R3C 1B2
Ph (204) 983-8907
Fax (204) 984-6008

d)    Zoning and Building Ordinances

• Zoning laws outline how a particular piece of property may or may not be used. Zoning regulations are a municipal responsibility.
• Building permits are required in most areas to ensure compliance with building codes.

e)    Business Licences, Registrations and Sales Taxes

• Local authorities in some locations may require certain types of business operation to have a business license.
• Businesses with sales exceeding $30,000 gross per year, you are required to register with Revenue Canada for the Goods and Services Tax (GST).
• Provincial sales taxes may also have to be applied depending on the product sold.

Additional Information:
Manitoba Finance
Room 101
Norquay Building
401 York Avenue
Winnipeg, MB R3C 0P8
Ph (204) 945-6444
Fax (204) 945-2087

f)    Universal Product Code

• The Universal Product Code or UPC is a numeric bar code used to identify a retail consumer package. The advantages of the UPC symbol include faster checkout service, accurate pricing and collection of sales data.

Additional Information:
Product Code Council of Canada
885 Don Mills Road, Suite 301
Don Mills, Ontario M3C 1V9
Ph (416) 510-8039
1-800-567-7084

ii)   Regulations Relating To Employees

• If you hire employees, you must comply with regulations such as employee payroll deductions, the workers compensation board, and employment standards.

a)    Payroll Deductions

• The three purposes for payroll deductions include:
  • Income Tax
  • Canada Pension Plan
  • Unemployment Insurance

Additional Information:
Revenue Canada
District Taxation Office
Employer Services
325 Broadway
Winnipeg, MB R3C 4T4
Ph (204) 983-3918
1-800-542-3441

b)    Workers Compensation Board

• The Workers Compensation Board provides two-way protection. First, the system seeks to improve job health and safety and helps soften the financial consequences of an industrial injury or disease affecting the employee. For the employer, it removes the threat of a lawsuit and possible heavy settlement if an injured worker sues for damages.

Additional Information:
The Workers Compensation Board of Manitoba
333 Maryland Street
Winnipeg, MB R3G 1M2
Ph (204) 786-9525 Rural Inquiries 1-800-362-3340
Fax (204) 783-4610

c)    Employment Standards

• Employment standards typically deal with the following standards:
  • Payment of Wages
  • Annual Vacation
  • Termination of Employment
  • Minimum Wage
  • Child Employment
• Certain employment standards may not apply to farm employees, so it is important to check with your provincial authority for full details.