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The following transcript is protected under a Creative Commons Attribution-NonCommercial-NoDerivs 2.5 License. Link to Audio and Episode Info Here
Show Transcript Deconstructing
Dinner Kootenay Co-op
Radio CJLY Nelson, B.C. Canada September 6,
2007 Title:
Packaged Foods Exposed IV - Unilever I Producer/Host - Jon Steinman Transcript -
Pat Yama Jon
Steinman: And welcome to Deconstructing Dinner, a
weekly one hour radio program and podcast produced at
Kootenay Co-op Radio in Nelson, British Columbia. I'm Jon Steinman and I'll be
your host for the next hour. It's been about five months since we last aired an
episode of our "Packaged Foods Exposed" series here on the program. The series
was launched in May of 2006 with the intention of educating ourselves about the
major food manufacturers operating in Canada or shipping their products to
Canada. Back in April of this year, we ran a one
hour exposé on Kraft
Foods, North America's largest packaged foods manufacturer. And we have aired
similar episodes on Nestle, and PepsiCo. Well on today's broadcast of
Deconstructing Dinner we look into yet another global giant in the world of
packaged foods. A company that most would probably not associate with food and
that is the Anglo-Dutch multinational Unilever, better known for their personal
care and home cleaning products. But food is indeed a major component of
Unilever's operations around the world and especially here in Canada where they
control a significant percentage of the country's brands of margarine,
dressings, soups, tea, and ice cream. Upon
investigating Unilever's operations in Canada and abroad, we have chosen some
interesting stories to cover on today's broadcast. Some of which represent some
major impacts this company is having on Canadian agriculture, food security,
and human health. The operations of this company raise so many interesting
questions that this broadcast will be spread out over a two-part series with
Part II airing in the following week. And so
featured on today's Part I of this Unilever exposé, we look into the history of
margarine in Canada, and its historical and current impacts on dairy farmers.
We'll explore battle that has been waged for years now over a ban on the colouration of margarine in Quebec. A battle that may soon
lead to the first every interprovincial trade war since the Agreement on
Internal Trade was first signed in 1994. And on Part II of the exposé we will
look at Unilever's roughly 25% control of Canada's ice cream market and a
controversial ingredient making its way into their ice creams around the world.
We'll examine Unilever's historical and recent impact on the cod stocks off the
coast of Europe, which are teetering on the break of collapse. And so joining
me on the program today for this Part I, we will be hearing from Sean McPhee of the Vegetable Oil Industry of Canada based in
Toronto. And we will also hear from Therese Beaulieu of the Dairy Farmers of
Canada based in Ottawa. increase music and fade out JS:
For any listeners that may have caught our most recent "Packaged Foods Exposed"
episode back in April of this year 2007, you may recall two projects that we
chose to undertake following the broadcast of that show. And just before we
dive into this newest episode on Unilever, I will provide an update of the
progress of these projects, if you haven't already been following this on our
website. Again, that one hour broadcast was a feature on global food
manufacturer, Kraft Foods. But it was during the research of that broadcast
that we came across two startling findings. The first was an advertisement
found on the Exclaim Magazine website promoting Kraft Singles processed cheese
slices. Now the advertisement made four health-related claims, two of which had
seemed to be rather odd. The first questionable statement read
this "Canada's Food Guide to Healthy Eating recommends kids get two to four
servings of calcium from milk products per day." Now I proceeded to contact
Health Canada and the Canadian Food Inspection Agency, the CFIA. And they
indicated that this statement was indeed false - that there is no such thing as
servings of calcium nor does the new food guide have a category labeled as
"milk products." Instead, there is such a thing as servings of milk or milk
alternatives. The second statement that raised concern was this, "According
to Statistics Canada it is suggested that kids may not get the recommended
amount of calcium." Again, we asked Health Canada about this and sure enough,
Statistics Canada has never suggested kids may not receive enough calcium. And
so, simply put, these were blatant lies and misleading statements included
within the advertisement. Health Canada's Canadian Food Inspection Agency
indicated that a complaint could be filed with Advertising Standards Canada,
ASC. Given how much influence advertising has
on the food consumption patterns of Canadians, we chose to launch a project
whereby you the listener, could learn about the process when a consumer
complaint is filed with ASC. So I went to their easy-to-use online complaints
submission form and filed the complaint on April 13th, 2007. On
April 23rd, I received a letter from ASC indicating that the
complaint was received but that the issue needed to be addressed by the
Canadian Food Inspection Agency, who as you probably recall, had sent me to
Advertising Standards Canada. And so we waited. It wasn't until June 5th
that we received a letter from the National Manager of Nutrition and Health
Claims at the CFIA indicating this, "With regard to your complaint on the Kraft
Singles Processed Cheese Product, we have forwarded this to the Dairy Program
of the CFIA for any necessary action. Thank you for your views on this matter." And so I was left questioning whether I
was going to be kept in the loop as to how this complaint would continue to be
handled. In the weeks following this letter, I left messages with both the
author of the letter and the National Manager of Dairy, Eggs and Honey, who
this letter was copied to. My attempts were never answered. So as a concerned Canadian consumer
undertaking such a process, my concern would have been allowed to evolve up
until this letter I received. Well I think it's safe to say that's just simply
not good enough. So I instead, switched into my role as a member of the media,
a position which bureaucrats and companies are more willing to share
information with. On August 27th, I contacted a media representative
at the CFIA and was quickly informed that the matter had been sent to Ontario's
Regional Office located in Guelph. I contacted the office and was told that the
complaint would be looked into and someone would get back to me on its status. Well, over a week went by and no word. So
I sent yet another message and received a response on September 6th.
And the response was as follows, "I can assure you that we have resolved this
complaint with Kraft Foods. I cannot provide you with anything more specific.
If you require any further details, you may wish to submit an Access To
Information Request." Now this falls under the Access To
Information Act, which gives Canadian citizens as well as people and
corporations present in Canada, the right to have access to information in
Federal Government records. But it costs $5.00 to submit a request. A cost that
I will note is about the same price as a package of Kraft Singles. So you can
rest assured that I do intend to file an Access To Information Request to find
out just what this so-called resolution with Kraft Foods was in regards to the
false and misleading advertising we came across back in April. For any of you who want to stay updated
on these projects, we are keeping the webpage for that show updated with
information. And you can access that through our website at
cjly.net/deconstructing dinner. soundbite JS:
Moving along to the focus of today's broadcast,
we are again launching Part I of a two-part exposé on global consumer products giant, Unilever. The
Company is most often recognized as the makers of well-known personal care and
home care products. But food is indeed a major component of this company's
operations worldwide. Unilever has been referred to as the first modern,
multinational company. And it was founded in the 1920s following the merger of
Lever Brothers, which at the time was a British soap company, and Margarine Unie, a Dutch margarine company. And
hence, the name Unilever. The Company is still headquartered in both London, England and Rotterdam in The Netherlands. They
employ around 179,000 people in close to 100 countries. Their operations here
in Canada are headquartered in Toronto, employing 3,300 people across the
country. Now why focus
so much time on this Company as we are about to do over the course of this
broadcast and the next. Well, with global revenues to the equivalent of 57
billion dollars Canadian, this is a company that wields considerable influence
on how food is grown, processed, produced, distributed, and sold. Now what
makes this Company also of great interest is their diversified portfolio of
products often not seen among the major global food manufacturers. One would
wonder why a soap company and a margarine company would choose to merge in the
1920s and more importantly, remain in this position until today, in what is a
fiercely competitive marketplace. But when you look at the raw ingredients of
both soap and margarine, the picture becomes clearer as both products are major
users of vegetable oils. From coconut oil to palm, cottonseed, canola, and
soya, Unilever has become one of the world's leading purchasers of vegetable
oils. Now the crops
used for such purposes are accompanied by a host of environmental and social
concerns. As it's these very crops that take up incredible amounts of land
around the world. And especially here in Canada, most of these crops are
genetically modified; require constant application of chemical pesticides and
fertilizers. They're grown in monocultures, reducing the biodiversity that is
so essential to healthy soil and natural ecosystems. Before we get
into the operations of Unilever and how their influences shapes Canada's
agricultural system and food supply, we can launch the Customary Packaged Foods
Exposed grocery store tour, one that can better acquaint us with the company we
are about to deconstruct. Our grocery store theme music is courtesy of Toronto
musicians David French and Louie Simao. fade music in JS:
Now if we start our Unilever grocery store tour
off in the refrigerated section of the grocery store, we arrive at the focus of
today's broadcast - margarine. With Unilever's brands - Becel,
Imperial, Blue Bonnet and I Can't Believe It's Not
Butter. Stepping over into the frozen food section of the grocery store we
arrive at yet another segment of Canada's food supply heavily controlled by the
company. And that is ice cream. Unilever manufactures brands such as Breyers, Klondike, Good Humour,
Ben & Jerry's, Cadbury, Reese, Skor, and Oh Henry
Ice Cream Bars. They manufacture the well-known Popsicle brand and other frozen
desserts under the Breyers logo. Moving into the warmer sections of the
grocery store we arrive at some more oily products such as Hellman's mayonnaise
and salad dressings and Bertolli olive oils and
vinegars. Unilever owns the Ragu pasta sauce brand along with Knorr and their extensive line of ready-to-serve soups,
soup broths, bouillon such as OXO and Bovril, Knorr's
frozen chicken, beef and seafood entrees, and sauces, seasonings, gravies and
marinades. Skippy peanut butter is also a Unilever product. Unilever owns the
Lipton brand of foods and beverages including the well-known Lipton soups such
as Chicken Noodle, Cup-a-Soup, and SoupWorks, along
with packaged side dishes such as Lipton's SideKicks. Now if we move into the beverages
department we of course arrive at Lipton iced tea products. But Lipton is also
a major tea brand on its own and this leading brand is partly why Unilever is
the world's largest purchaser of black tea, buying up to around 12% of the
world's supply. Other Unilever tea brands here in Canada include Red Rose and Salada. Now when examining any major packaged
foods company and what impacts they have on the environment, on health, and on
the communities in which they operate, it's imperative to understand all of the
products that the company produces. And we need not leave the grocery store to
find Unilever's personal care products such as Axe, Degree, Dove, Lever 2000,
Pond's, Q-Tips, Thermasilk, Suave, Sunsilk, and Vaseline. Arriving in the homecare department,
we arrive at their brands Snuggle, Sunlight and Vim, products that find their
way into the shopping carts of many Canadians. fade music out JS:
Now while the grocery store tour concludes on
that note, Unilever does also have a considerable stake in the food service industry
through their Unilever Food Solutions division. The division provides many of
the products just listed to restaurants, cafeterias, and catering companies
across the country. And so for the entire broadcast today we will focus on
Unilever's margarine products, in particular, their Becel,
Imperial, Blue Bonnet, and I Can't Believe It's Not Butter brands. What may be
perhaps the most surprising news when it comes to Canadian margarine is that
margarine may very well, by the end of this year, spark the first-ever
interprovincial retaliatory trade war since the Agreement on Internal Trade was
first signed by the provinces in 1994. How could a tub of margarine be so
powerful you may ask? Well, the province of Quebec is the last place in the
world that maintains a margarine colouration ban.
That is a ban that prohibits margarine to be coloured
yellow, like butter. Such a ban understandably infuriates a company like
Unilever who now must produce two different products - one for Quebec and one
for the rest of Canada. But it also has angered the Vegetable Oil Industry of
Canada of which Unilever is a member. But angry too are farmers, processors,
and the Alberta, Saskatchewan, and Manitoba governments. And we will shortly
hear more about this margarine war when we listen in on an interview I
conducted with Sean McPhee, the President of the
Vegetable Oil Industry of Canada, an industry group representing oilseed
growers, processors, suppliers, and manufacturers. Before we get to that interview it's
important to note that margarine isn't new to conflict in Canada and the United
States. In fact, the history of margarine is probably one of the most
fascinating windows into the evolution of our food system over the past 100 or
so years. Margarine has significantly impacted and been impacted by famine,
war, poverty, and depression, prosperity, health concerns, political lobbying,
the rise of industrialized agriculture, and the list goes on. In a 1982 issue of the Journal of Social
Problems, an article appeared titled, "The Menace of Margarine: The Rise and
Fall of A Social Problem." In it the authors write this, "The evolution of this
problem is closely related to historical shifts from agricultural to industrial
order." And as we will soon discover, this has indeed been the case. That
margarine and its significant impact on its more traditionally-produced rival -
butter, is a perfect illustration of our society's transition from a more
natural way of eating to an industrial one. In fact author Mark Twain was once
quoted speaking about margarine and he denounced the product as another sign of
the artificiality of modern life. Yet another notable comment was that from the
Governor of Minnesota in the late 19th century. And he referred to
margarine and its, "kindred abominations as a mechanical mixture created by the
ingenuity of depraved human genius." And with such significant statements,
margarine does indeed seem to be like a product worth deconstructing, given how
accepted margarine has become as part of the Canadian diet. soundbite JS:
Now it was war that led to the creation of margarine in the first place. It was
in 1869 that Emperor Louis Napoleon III of France offered a prize to anyone who
could make a satisfactory substitute for butter, suitable for use by the armed
forces and the lower classes. The following year, a French chemist invented
what was first called "oleomargarine"; later of course changed to just,
margarine. But here in Canada the manufacture and
sale of margarine was a concern. Such a scientifically created food stirred
fear among Canadians and it also concerned the dairy farmers who saw margarine as a threat to
the popularity of butter. In 1886, by an Act of Parliament, margarine was
banned and enforced until 1917 when wartime shortages of butter brought
legalization. When butter production was back to adequate levels, the ban was
reinstated in 1923. Now the
Newfoundland Butter Company was established in 1925, but the island was not yet
part of Canada. Unilever - the focus of today's broadcast purchased the company
in 1937. Following World War II in 1948, the battle to legalize margarine was
referred to the Supreme Court. A number of factors led to such high-level
decisions needing to be made, including a forecast that a shortage of dairy
products was going to occur over the coming years. That along with the poor
financial positions many Canadians were in, led to the legalization of
margarine, a cheaper alternative to butter. And margarine has remained legal in
Canada ever since. Blue Bonnet Ad: Male: I've always considered eating mashed potatoes with my Blue Bonnet
(tasting potatoes) … to be in very good taste. Female: I've never French toast without my Blue Bonnet. At least I don't think
so. (tasting food) No, I'm positive. Male: Whatever foods you love, everything's better with creamy delicious
Blue Bonnet. Chorus: Everything's better with Blue Bonnet on it. JS: Now many concerns accompanied the arrival of margarine in 1948, with
the greatest opposition understandably coming from the Dairy Farmers of Canada.
Now we came across an old recording from the CBC archives dating back to 1948
when a segment on the legalization of margarine was aired. Interviewed on the
program was Erle Kitchen of the Dairy Farmers of
Canada, and he had some interesting predictions as to how margarine was going
to impact not only dairy farmers but all of agriculture in the country. But
before we hear what his predictions were, here's the introduction to this 1948
clip on the legalization of margarine with host Bill Reid. This is courtesy of
the CBC. And also because of how old the clip is, there is quite a bit of
static, but take a listen. CBC Interview 1948: Today in Ottawa the Supreme Court of Canada ruled that butter
substitutes, including margarine could be manufactured and sold legally in
Canada. But that they could not be imported legally. Here is Warren Baldwin of
the Toronto Globe & Mail to tell you about the lifting of the ban. He
reports from Ottawa. The Canadian consumer tonight is probably giving three rousing cheers
for its Supreme Court, at least for the majority of its judges. He faces the
prospect of being able to buy margarine in Canadian stores within the next
month. No one seems to know at all certainly yet what the price will be. In
Newfoundland it's selling at from 35 cents to 38 cents a pound. But perhaps we
shouldn't cheer too lustfully yet. The government, in spite of the fact that it
argued in favour of its right to continue the ban
isn't likely to appeal. Consumers of butter still have more votes than
producers. But the government probably will suggest that the most interested party
in the case is Herbert Hammond and his Canadian Federation of Agriculture. And
if anyone's to appeal it is up to this organization. And Mr. Hammond says that
an appeal will be considered immediately. If they do there is no doubt that
they will have a very strong legal case. The fact that the Chief Justice, Mr.
Justice Kerwin dissented from the majority judgment
today, will carry a lot of weight with the Privy Council in London. The Chief
Justice points to the right of the dominion to regulate trade and commerce
under the British North America Act and sees the margarine ban as a regulation
of trade and commerce. He hasn't mentioned the question of a protection of
health. Even the government in arguing its case didn't go so far as contending
that margarine today could be injurious to health. That's an anachronism dating
back to 1880. Well, that's the legal side of the question. But there's a moral
question involved. And it may be summed out by the dairy farmers of Canada will
want to continue a controversy which resolves itself now into the question of
whether the dairy industry should be protected against competition,
particularly at the moment. Canada's butter stocks have been dropping steadily on
Danish and New Zealand supplies to the extent of 15 million pounds. And even at
that there's a serious threat of a butter famine in the spring. On the other
side of the case, there is the very serious question of what margarine competition
may do eventually to the dairy industry in Canada. JS: As this 1948 CBC interview continues, we hear from Dairy Farmers of
Canada's Erle Kitchen. In this segment Earl predicts
what he believes will happen once margarine is legalized. And listen closely,
as his comments will lay the foundation for the remainder of today's broadcast
as we determine whether his predictions did indeed come true throughout the 60
years following this interview. CBC
Interview 1948: And viewpoint on the question, here is Erle Kitchen, National Secretary of the Dairy Farmers of
Canada. He is interviewed by Bill Beatty of the CBC. BB: How do you feel about today's margarine news
Mr. Kitchen? EK: We feel that this judgment, simply the
result of a long campaign financed by the people who expect to make money out
of margarine and joined in good faith by many other people who felt that the
ban was not in the public interest. We don't blame the court for giving the
decision. There's the public that placed the matter before the court. And now
it's up to the public to find ways of solving the problems created by the
margarine decision. BB: And what are these problems, sir? EK: Here's what it boils down to. If you use
margarine, you very likely won't use as much butter. Then the farmer won't keep
as many cows. There's no getting around the fact that this is soon going to
cause a marked decrease in Canada's livestock population. Not only in the
number of cows that produce cream for butter but also in the number that
produce whole milk. Further along the line of this vicious circle of livestock
reduction we'll have fewer hogs and poultry for they depend on a byproduct that
butter making - skim milk for an important part of their diet. BB: So is this livestock population decrease
really important? EK: It is. The amount of butter we use has a very
definite affect on soil conservation. That may seem strange but stop using
butter, force a decrease in animal population and you automatically affect the
vitally needed supply of animal manure to enrich the soil. And when we deal
with soil conservation, one thing you've got to remember is that if we grow the
raw material, the oil producing crops for margarine production, they rob the
soil of organic and mineral matter at a terrific rate. A few crops along this
line can ruin fertility buildup by generations of careful farming. I do hope
this removal of margarine ban isn't a national decision to let the soil take
care of itself. If it is, there might be some possibility of saving pennies on
margarine and in years to come having to spend millions on soil conservation. BB: Well you feel the margarine decision is real
hardship to the farmers? EK: Yes I do. All during the war years and up to
the present time, the farmer has received a controlled price for butter. Market
outlets have been controlled. I feel that now the world market should be open
so that the Canadian farmers might get the best market prices for dairy
products. BB: Thank you Mr. Kitchen. This is Bill Beatty of
the CBC speaking from Toronto. JS: Erle Kitchen predicted that there would soon
be a marked decrease in Canada's livestock population and he suggested that
this decrease would lead to a marked decrease in the supply of vital manure to
enrich the soil. Any increase in the cultivation of crops for margarine
production would further rob the soil of vital nutrients and perhaps of
greatest importance, he predicts that in the future, we will have to spend
millions of dollars on soil conservation. Now we are going to examine this prediction
in just a moment. But first, here's the remainder of this 1948 CBC interview. CBC Interview 1948: BB: Well now comes the question, when will we be able to buy margarine in
Canada. We've had Dave Price busy all day trying to find out. And here he is to
report. DP: This morning when the story broke in Ottawa, newsmen ran the logical
manufacturers right for stories. There were stories to the effect that the
manufacturer of margarine would start any minute. And one story said that
Toronto housewives could begin shaving the family budget no later than Friday
of this week. Margarine would be on the shelves of their grocery stores by that
time. Somehow that didn't add up. It meant that if a manufacturer could get
margarine to the buyers that quickly then they knew something the Supreme Court
didn't even know. The best way to ease my mind on the subject was to talk to people
myself. I did. After a number of hours on the phone, I finally contacted the margarine
man of a large Canadian packing house and here's what I learned. His company
which will be the first to introduce margarine to the Canadian market will
definitely not have margarine ready for sale this week. As a matter of fact,
this company won't offer margarine for sale until their product has been
experimented with, pass rigid government inspection, and has proved to the
packing house officials that it's a main number one product. He said that their
margarine won't turn consumers against the product like the margarine of World
War I did. So it might be one week or it might not be for four weeks. But you
can be sure, he said, it won't be on the market until it's
right. I asked him if the prices of 36 to 38 cents quoted in the paper were
right and he said he thought the price would be nearer 50 cents. The vegetable
oils needed for the manufacture had to be imported and the duty was fairly
high. I questioned him about the nutrition value of margarine and it's expected
that similar to the margarine manufactured in the United States, our margarine
would be fortified with 15,000 International Units of Vitamin A per pound. I asked him if it was true that his company had machinery installed that
was ready for the manufacture of margarine. He told me "no" and then invited me
to come out and take a look. This I did and workmen were busy converting
machinery already used for dairy products for the use of the manufacture of
margarine. This company is closer than any company to the manufacture of
margarine the official told me and then he said that there will not be an ounce
of margarine on the market this week. So ladies, don't buy any new hats with the money you are going to save
by your purchase of this new product. That is, not until you get the green
light. You'll know in plenty of time. This is David Price reporting from
Toronto. JS: And this is Deconstructing Dinner. And that was a CBC recording dating
back to December of 1948 with host Bill Reid. Now making any attempts to try and determine if Erle
Kitchen's predictions as to how the legalization of margarine would impact
agriculture in Canada is difficult to say the least. There have been numerous
impacts to Canadian agriculture than just the introduction of margarine
production itself. And I did contact Agriculture and Agri-Food
Canada who also agreed that it's not possible to determine to what extent these
predictions have indeed come true. I also contacted the Dairy Farmers of Canada
and asked their opinion, and they too, said the same thing. But here's a quick
response from the Dairy Farmers of Canada's Assistant Director of Communication
and Policy, Therese Beaulieu. She spoke with me briefly over the phone from her
office in Ottawa. Therese Beaulieu: It has impacted dairy farming. It has impacted the consumption of
butter. We also need to realize that over the years the markets for dairy
products and for butter has changed a lot. Back in 1948, people mostly drank
milk and ate butter and ate a bit of cheese but cheese was mostly a product
that was exported at that time. Now that market is completely different today.
Now you have a lot of various different dairy products including yoghurt and
other products that did not exist at that time and part of it just goes with
all the food habits that have changed as well. Today we have frozen pizzas, we
have ready meals and we didn't have that in 1948 so there's been so many
changes that it's very difficult to say exactly what is the impact of margarine
per se on the dairy industry or dairy farming because there's been so many
other changes. JS: Now if we were to look at some of the statistics as to what has
happened to Canadian agriculture since the legalization of margarine in 1948,
we first arrive at Earl Kitchen's first prediction, which was, that there would
be a marked decrease in the population of dairy cows in Canada. Well this is
certainly the case and the numbers are startling, especially given the Canadian
population between the end of World War II and today has increased from 12
million to over 32 million. And so listen to this, in 1944, Canada's population
of dairy cows was the highest it has ever been in the history of the country at
just around 3.7 million. Today, that number has dropped to just over 1 million.
Now in the case of butter production, these statistics are also
startling, and remember, the population of Canada has increased significantly.
Nineteen sixty-four was the peak of butter production in Canada at 357 million
pounds. By comparison, margarine production was at 171 million pounds in that
same year. By 1975, in just over 10 years, butter production had dropped to 264
million pounds, with margarine production increasing to that same amount, 264
million pounds. And today, butter production is at 184 million pounds. Now there's no doubt that such a marked decrease in the population of dairy
cows in Canada led to an equally steady decline in the availability of manure
as an effective organic fertilizer. But as was the case, the end of World War
II, also marked the rapid rise in the use of chemical fertilizers, which, in
the case of margarine's raw materials are used in abundant amounts. And so
there can be little doubt that regardless of how much of an impact margarine
had had on available fertilizers in Canada, it certainly encouraged the
increased prevalence of chemical agriculture in the country. Organic
fertilizers such as manure were plentiful and inexpensive, especially on mixed
farms where both dairy and crops were raised and cultivated. The introduction
of chemical fertilizers that were produced and sold by companies, marked a steady
increase in the amount Canadian farmers were required to shell out to improve
the nutrient content of their soils. Looking at the statistics, in 1948,
farmers growing crops on average spent about 2.8% of their total costs on
fertilizers. By 1971, that number had increased to 9.2%. Blue Bonnet Ad: Female: Do all your sandwiches taste the same? Mine did until I started using
the ideas in this Blue Bonnet sandwich book. Of course I always begin with Blue
Bonnet margarine because my family loves the flavour.
It makes everything taste more interesting. You know you can't beat the taste
of a Blue Bonnet sandwich. JS: But with so many factors potentially influencing such statistics, I
chose to contact Ann Clark at the University of Guelph. Ann Clark is an Associate
Professor who specializes in organic farming and dairy systems. And she had
some interesting comments to share as to whether or not this 1948 prediction
that margarine would lead to a depletion in soil
quality has proven to be true. Her first response was this, that "in principle, he is right". Now I'll read to you a segment of Ann's email that I found really
interesting as it addresses one of the new buzzwords in this age of increased
environmental awareness - and that is sustainability. Ann writes this, "The
best and only example we have of true ecological sustainability is nature. We
just don't live long enough to know what sustainable really means. So, my
fallback is nature. And it follows then that if we want to claim that
agriculture is sustainable, then we should be crafting and designing
agriculture to emulate nature. Most of us don't do well on bark and leaves, so
agriculture can never be nature, but it should, arguably, be the standard." Ann Clark of the University of Guelph also comments on the increased
presence of annual crops in Canada. Now these are the crops that go into the
production of margarine, canola and soy oils being the two primary ingredients.
And Ann says this, "Annual crops generate nearly insurmountable ecological
challenges in more humid environments." Now another impact of the rise in the cultivation of such crops for
margarine production is that of biodiversity. Virtually all of these crops are
grown as monocultures - that is one crop planted over incredible distances. In
regards to soil conservation, Ann indicates that biodiversity is essential both
to control pests and to maintain soil structure, nutrient cycling and water
infiltration. She also adds that growing annual crops requires bare soil -
something virtually unknown in nature. So it's becoming clear that the rise of
margarine production in Canada has indeed contributed to a rise in the
depletion of soil quality where such crops are grown. Raising dairy cattle on
the more traditional pasture requires that the soil indeed always be covered
with grasses on which dairy cows feed and hence a better system to conserve
soil quality. Now I say this tongue in cheek, but something tells me that some
margarine manufactures were well aware that margarine was fooling nature. For anyone who watched television throughout the 1970s, you probably
remember the well-known Chiffon Margarine jingle. Take a listen. Chiffon Ad 1970: Mother Nature: And Goldilocks said "Who's been eating my porridge? Male: Mother Nature, was this on the porridge? Mother Nature: Yes, lots of my delicious butter. Male: That's Chiffon Margarine, not butter. Mother Nature: Margarine? Oh no, it's too sweet, too creamy! Male: Chiffon's so delicious it fooled even you Mother Nature. Mother Nature: Oh, it's not nice to fool Mother Nature. (lightning sound) Singer: If you think it's butter, but it's not, it's Chiffon. JS: Now the question is, is the lightning at the end of this advertisement
a sign of what fooling Mother Nature with margarine would do? She certainly was
not very happy back in the 1970s, and she most certainly is not very happy
today. soundbite JS: And you're tuned in to Deconstructing Dinner, a weekly one-hour radio
program and podcast produced at Kootenay Co-op Radio
in Nelson British Columbia. I'm Jon Steinman. If you missed any of today's
broadcast or would like to learn more about anything mentioned on the show, you
can visit our website at cjly.net/deconstructingdinner.
Today's show is titled, "Packaged Foods Exposed IV" and is the first of a
two-part exposé on global consumer products company Unilever - a company based
in both the U.K. and The Netherlands. The focus of today's broadcast is
margarine, with Unilever's dominance in this market having had a significant
impact on Canadian agriculture, food, and health. Unilever produces well-known
brands such as Becel, Imperial, Blue Bonnet and I
Can't Believe It's Not Butter. This Unilever exposé will also continue next week when we will put the
focus on the company's 25% control of Canada's ice cream market, and the impact
the company has had on contributing to the near collapse of the Northern
European cod stocks - an ironic position to be in given Unilever's presence in
Canada began in Newfoundland, the site of the worlds most recent cod stock
collapse. But as indicated earlier, margarine in Canada still evokes a heated
debate. The health implications of margarine are perhaps in recent years the
most well-known, but margarine is also setting itself up to potentially be the
cause of Canada's first retaliatory interprovincial trade war. And this traces
back to the history of yet another contentious issue, and that is margarine colouration. Ever since margarine was introduced into North America, both the U.S.
and Canada had been quick to ensure that margarine was not allowed to be sold
as the same colour of butter. This was said to both
protect the consumer from confusion, and to protect the dairy industry.
Now this was taking place over 100 years ago in the United States and the
battle continues today, because since 1994, Quebec has been the only
jurisdiction in the world that maintains a ban on the colouration
of margarine, which in its original form, is white. It was the province of
Ontario that lifted its margarine colouration ban in
1994. But for anyone old enough to remember (and I can certainly count myself
out), for quite some time leading up until the 1960s, margarine producers would
bypass the colouration ban by including a small
capsule of yellow dye with each package of margarine. Upon purchasing the
product, consumers would squeeze the capsule into the margarine, mix, and
voila, butter… (or what was supposed to look like
butter). Now this had of course caused quite a headache for margarine
manufacturers such as Unilever. These companies were determined to sell a
product that looked as similar to butter as possible. But then came the North
American Free Trade Agreement (NAFTA), and along with that Canada's Agreement
on Internal Trade, kind of the NAFTA between provinces. And this brings us to
my guest Sean McPhee, the President of the Vegetable
Oil Industry of Canada or VOIC - an industry group representing canola growers,
oilseed processors, companies like Archer Daniels Midland, Cargill, and,
Unilever. Sean has probably been one of the most involved individuals in
fighting the margarine colouration ban that Quebec
continues to maintain to this day. Prior to his role with VOIC, Sean had been
operating a consulting practice and one of his main clients was Unilever. I spoke to Sean over the phone from his office in Toronto, and he
introduces Quebec's margarine colouration ban. Sean McPhee: Quebec reinstituted the ban in 1987 after a repeal in the 1960s. And it
was the Bourassa government in 1987 that reestablished the colour
ban. And the point of the ban is of course, to make margarine unappealing and
unappetizing so consumers won't buy it in order to protect the domestic Quebec
dairy industry. JS: Sean McPhee suggests that the margarine colouration ban in Quebec has cost the oilseed industry and
the manufacturers like Unilever significant amounts of money. SM: Just in terms of numbers losses to the margarine industry when you're
talking about the margarine industry you're talking about people who grow
canola and soybean, and flaxseed and sunflowers, they have those people who
process and refine the oil to turn it into margarine. The loss to the industry
for those folks is about 25 million dollars a year, which may or may not sound
like a large number but it's still a loss. And that loss has been going on for
10 years. You're talking something in the range of 250 million dollars in total
since Quebec was obligated to repeal that regulation. You also have the ongoing cost of the national margarine manufacturer
whether making Becel or Imperial or whatever the case
may be who has to produce two different colours, one
for the rest of Canada and one for Quebec. That requires different production
runs, different inventories, different distribution
systems. The largest manufacturer of margarine in Canada estimates the
complexity of those two different production runs and those two different
inventories costs about 1.2 million dollars a year. So you add that on top of
the market losses, of what I said was about 250 million dollars, and as they
say you're starting to talk about real money. JS: Now Sean McPhee is of course referring to
Unilever as the company who was forced into producing two different types of
margarine. I did contact Quebec's Ministry of Agriculture and found out that
Unilever in fact supplies about 50% of Quebec's margarine, with most of it
coming from Ontario. But Unilever's concerns over the colour
of margarine might come across as confusing. As Sean McPhee
of the Vegetable Oil Industry of Canada suggests, Quebec's margarine colouration ban is designed to make margarine look
unappetizing, that is margarine in its natural colour.
But if you head over to Unilever's website, there is a paragraph that reads
this, "It's easier to eat well when you think in colour.
That's because the naturally occurring substances that give plant foods their
different hues are also what makes them so good for us." So on one hand the
industry agrees that margarine in its natural colour
is unappetizing, yet Unilever itself encourages its customers to support the
naturally occurring substances that give plant foods their different hues. Now that aside, looking back to when Sean McPhee
had Unilever as his client, Unilever chose to challenge Quebec's ban shortly
after the Agreement on Internal Trade was signed by the provinces. And Sean
explains. SM: In 1993 the Canadian government, the provinces, and the federal
government signed the Agreement on Internal Trade whereupon they agreed that
silly regulations like margarine colour and a host of
others related to labour mobility and all kinds of
different regulations that didn't make any sense, should be eliminated in the
context of our commitment to global free trade under the North American Free
Trade Agreement and the World Trade Organization. Governments then, in 1994 had
a timeline to eliminate all of these silly regulations and that timeline was
1997. So we began in about 1996 to pressure the Quebec government to meet its
commitments, to ensure they were aware of it, and put it on the public record that
that this regulation would be repealed. They tabled the draft regulation in
1997 according to the timeline that they were obliged to adhere to, to repeal
the colour regulation - the margarine colour regulation. After about three weeks under the
pressure of the Dairy Lobby, the government withdrew it. Even though they said
in the draft regulation that they had to repeal the regulation in order to
conform to their commitment to the Agreement on Internal Trade and their
commitments to the other provinces, they withdrew it. And it was at that point
in late 1997 that Unilever chose to challenge the regulation legally by
deliberately importing yellow-coloured margarine from
the United States in order to institute a legal challenge which then became the
subject of court challenges right from the Quebec Superior Court to the Quebec
Court of Appeals and ultimately to the Supreme Court of Canada. JS: Now at this point I think it's important to point out the absurdity of
all this. Yes, Quebec had, at this point set themselves up to protect their
dairy farmers. But out of principle, any community whether it be a small town
of 500 people, a city of 1 million, or a province such as Quebec who maintains
significantly different cultural values than any other province, it seems that
out of principle, they should have the right to protect their local
agriculture. This is exactly what we see happening all across the country. In
the case of strawberries, Ontario farmers are packing up their farms and if not
switching crops moving to cities because they just can't compete with cheaper
California strawberries available almost year round. Because of open borders,
Ontario has no basis on which to protect its strawberry farmers. Here in British Columbia, slaughterhouse regulations set to come into
effect on September 30th are designed for large-scale operations
wishing to export meat. This is forcing small-scale producers who are raising
animals for their own communities to give up altogether. And here, in the case
of margarine, you have a company with headquarters in the U.K. and the
Netherlands, importing margarine from the United States, all along with the
intention of challenging Quebec and the protection of their local farmers.
Quebec did seize the illegally imported yellow margarine, and as planned,
Unilever took the issue to the Supreme Court of Canada. And Sean McPhee describes what happened. SM: The Supreme Court of Canada upheld the lower
court decision, which was -yes, this regulation is wrong, it's protectionist,
it's deliberately discriminatory but if provinces wish to regulate in this
manner, under the Canadian Constitution, they are legally entitled to do so.
The Supreme Court upheld that position which is not terribly surprising given
the Constitutional division of powers between the federal government and the
provinces. But what is disturbing about all of this is that Quebec, like the
other provinces, signed an agreement that said we're going to respect your
goods and services and treat them in a no less satisfactory way than we treat
our own. In other words, Alberta, you can trade into Quebec with your
canola-based margarines just as we trade into your province with our dairy
products. That was the whole point of the Agreement on Internal Trade. Even
though constitutionally you can discriminate against another province, its
goods and services, Quebec committed to regulate in a manner, which respected
the goods and services of the other provinces. And so, in not repealing the
margarine colour regulation they violated that
commitment. And they basically said to, principally Alberta, B.C, Manitoba, and
Saskatchewan where canola is grown, canola oil being a major constituent in any
margarine in this country, they basically said well, you know what - too bad.
We're going to protect our own dairy producers, we don't care about you and
your canola growers and your processing industry. JS: As Unilever's
attempts to have Quebec's margarine colouration ban
repealed failed, the battle was not yet over. Following this failed attempt,
the Vegetable Oil Industry of Canada approached the Western provinces and asked
them to challenge the ban. SM: The Vegetable Oil Industry of Canada of which I am President, asked
Alberta, Manitoba, and Saskatchewan to challenge Quebec under the Agreement on
Internal Trade. The exact same thing when there's international trade
challenges, Australia challenges Canada on dairy issues, Canada challenges the
U.S. on poultry issues wherever there are corn or whatever the case may be.
It's the same thing here. And Alberta, Manitoba, and Saskatchewan referred the
matter to a trade dispute panel and won on behalf of the Vegetable Oil Industry
of Canada which comprises our canola growers, processors, and food makers of
products like salad oil and margarine and cooking oil and so on. And that
decision came through in 2005. And that's what we are referring to now when we
say that Quebec has done nothing, they've been sitting on that decision for two
years. JS: And this is Deconstructing Dinner where we are listening to clips from
my interview with Sean McPhee, the President of the
Vegetable Oil Industry of Canada. Following the decision, Sean McPhee was so convinced that the battle was over, that he
is quoted as saying, "We are delighted that Quebec's market is now open to
yellow-coloured margarine. I expect manufacturers to
start shipping coloured margarine into Quebec by
September 1st, 2005." Now this of course never happened, Quebec
continues to maintain their ban. So the big question is, what next? And here
introduces what may well become Canada's first legal retaliatory
interprovincial trade war. SM: The only mechanism to force them to comply, similar to international
trade conflicts, is you take retaliatory trade measures. If you've got a clear
finding that says hey, your regulation is discriminating against my products,
we now have a clear finding that says you should repeal that and you haven't
done so. After a period of time I'm going to say as a winner in the trade
dispute, well if you don't comply then I'm going to take action against your
products that are traded into my jurisdiction. And that's what Alberta is going
to do. And my understanding is that Alberta will come to a decision on exactly
what they are going to do by the end of this calendar year. So Quebec has three
months or so to sort itself out in terms of whether it's going to comply or
whether they will face retaliatory trade action from the western Canadian
provinces. JS: What's perhaps the saddest part about the whole scenario is that
Alberta, being one of the most polluting jurisdictions on the planet, one of
the wealthiest, and providing one of the key inputs helping support the
military invasions led by the United States, will be legally allowed to
challenge a province trying to protect their farmers. And herein introduces
what is often suggested here on Deconstructing Dinner, that food really does not
belong in the same arena as other commodities. Food and water is recognized
around the world as a right, and its ability to be challenged using the same
rules that govern footwear, automobiles, and military technologies, is as seen
in this case, perhaps one of the leading reasons as to why so many communities
are having such a hard time protecting their farmers and producers. At the time Alberta challenged Quebec in this respect, the premier of
Alberta was Ralph Klein. Now one of Klein's most well-known quotes dates back
to over 25 years ago when, in 1980, Canada's National Energy Plan - designed to
move Canada towards being oil self-sufficient, sparked outrage by Albertans,
Albertans wishing to export their oil as they please. And Klein said this, "Let
the Eastern Bastards Freeze in the Dark." Now if Quebec is being accused of
utilizing protectionist strategies, well such a statement by Klein is pretty
clear that Alberta is only concerned about one thing too, themselves. Now if the ability for trade agreements to hinder a community's ability
to protect its food supply is of further interest to you, you can check out one
of our recent broadcasts titled "Trade Agreements Over Dinner." And that's
accessible through our website at cjly.net/deconstructingdinner. soundbite JS: And you're tuned in to Deconstructing Dinner. Continuing on this topic
of Quebec's margarine colouration ban, the more
commonly accepted reason for such a ban is, as stated earlier, to protect the
dairy industry. Now provinces like Quebec have indicated that the ban is in
place to protect the consumer who may be confused when walking into a
restaurant for example. Now Therese Beaulieu of the Dairy Farmers of Canada
whom we heard from earlier would also agree. TB: We support the Quebec legislation and like I told you earlier when we
talked about how aggressive the oil industry has been on the margarine industry
has been in attacking butter. You know they use our colour,
they use the swirl that butter is associated for, you know you use to see a
swirl and you know that it was butter. If you see a little yellow blob on a
piece of corn you use to know that it was butter. Now they have used all those
images that are traditionally recognized as being a part of, I guess, butter in
their own thing. So in Quebec, just the difference in colour
actually does mean a difference in what people eat. Per capita consumption of butter in Quebec is
actually higher than in the rest of Canada. JS: Now those within the Vegetable Oil Industry would suggest that such an
argument is ridiculous, that the consumer can tell the difference between
margarine and butter. But I know from personal experience, as a child, I can
remember numerous occasions when I, for one, couldn't tell the difference, in
particular when in restaurants. And one would also wonder,
that if this is indeed a ridiculous argument then why is it the margarine
manufacturers go to such lengths to make margarine look and even taste like
butter. In fact Unilever margarines contain either whey protein or buttermilk
to make the product taste like butter. It almost seems like confusing the
consumer, is the goal. Take a listen to this 1960s advertisement for Imperial
Margarine, a Unilever product. Imperial Ad 1960: Male: Pass the butter please Vicky. {pause} Vicky the butter……Thank you. (sound of trumpet and
children laughing) Male: Hey, what's going on? Female: It's a crown love. I switched from butter to
Imperial margarine. Male: You mean this is margarine?! Commentator: Not just any margarine -
Imperial margarine. Once you taste it you'll agree. Male: Sure tastes like butter. JS: So while the Vegetable Oil Industry insists the consumer can tell the
difference, they're advertising campaigns are saying otherwise. Because of the
ongoing efforts companies like Unilever and the Vegetable Oil Industry are
taking to have Quebec's margarine colouration ban
repealed, Therese Beaulieu of the Dairy Farmers suggests that such efforts are
a sign of how powerful this industry is. TB: Well I mean that's like part of how aggressive the margarine and oil
lobby has been. You know the fact that they are still personally mad, because
it obviously makes a difference when you take the colour
and you take the pictures that are associated with butter. You take dairy
ingredients that put it in butter to make it taste like butter and then when
people go to the restaurant and they are not sure if it's butter or margarine
that's on the table. Of course you know what you have at home when you make a
conscientious purchasing decision. But when you're going outside you don't know
if it's the same colour and it has almost the same
taste because they actually used a dairy ingredient in their margarine to make
it taste like it. So it's misleading the consumer. JS: And that was Therese Beaulieu, the Assistant Director of Communication
and Policy for the Dairy Farmers of Canada. Therese spoke to me from her office
in Ottawa. On next week's Part II of this two-part exposé on Unilever here on
Deconstructing Dinner, we will continue on the topic of margarine, but more
importantly on the health implications of the product, the trans fats that have
been an ingredient of the product for years. And we'll examine how Unilever has
responded to the presence of trans fats in their products. Also to explore will be a continuation of this topic on Unilever's
efforts to create imitation foods that look and taste the same yet are less
expensive to the consumer and significantly less expensive to the producer. As
one of Canada's leading ice cream producers, we will examine how the company
seems to gradually be replacing the fluid milk in their products with dried
milk ingredients, some of which is imported from countries with minimal health
regulations. Unilever is even producing products that look like ice cream but
are so void of anything relating to cream, that they can't legally be called
ice cream in Canada. And what's replacing the milk products - well, you guessed
it - vegetable oil. And it's this, that has allowed Deconstructing Dinner to
come across, yet again, misleading advertising like that which we found when we
explored Kraft Foods. We'll also learn more about a genetically modified
yeast that replicates a protein found in a fish. Now the protein is making its
way into Unilever ice creams around the world. And after all this, we will meet
a former ice cream stand operator who got fed up with the quality of Unilever's
ice cream and decided to go into business and start producing his own, using,
yes, real fluid milk products. What a concept! Join me next week. ending
theme JS: That was this week's edition of Deconstructing Dinner, produced and
recorded at Nelson, British Columbia's Kootenay Co-op Radio. I've been your
host Jon Steinman. I thank my technical assistant John Ryan. The theme
music for Deconstructing Dinner is courtesy of Nelson-area resident, Adham Shaikh. This radio program is provided free of charge to campus/community radio
stations across the country, and relies on the financial support from you the
listener. Support for
the program can be donated through our website at cjly.net/deconstructingdinner
or by dialing 250-352-9600.
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