Competition Bureau report finds shared kitchens can improve food sector competition

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Canada’s Competition Bureau publishes a report detailing how shared kitchens and food hubs can help small producers enter the food sector.

The report finds that food hubs could help reduce high start-up and equipment costs that come with starting a business in the food sector.

It also recognizes the differing levels of regulation across municipal, provincial and federal governments and how this can limit growth.

The Bureau makes three recommendations to remove barriers for SMEs and increase competition:

Harmonize food safety and licensing rules across jurisdictions. This would reduce regulations and clarity on how to operate across multiple regions.

Clarify expectations and standardize inspection procedures for shared food production facilities to improve inspection processes and compliance for businesses operating from the same facility.

Use shared facilities as testbeds for regulatory innovation. To allow regulators to pilot new regulations and gather practical evidence.

“Food and beverage producers contribute to food security, regional economic development and consumer well-being. That is why we encourage policymakers to take these recommendations into consideration. Shared kitchens and food hubs can help open the market to small producers, including new players. Consumers and businesses deserve the benefits of competition, especially in Canada’s food sector,” said Jeanne Pratt, acting commissioner of competition.

Source: www.foodincanada.com