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Saputo, Kraft appeal court ruling upholding federal cheese regulations
By THE CANADIAN PRESS
Friday, November 20, 2009

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Chairman of the Board of Saputo Lino Saputo addresses the company’s AGM in Laval, Que., Wednesday July 6, 2008. THE CANADIAN PRESS Graham Hughes

MONTREAL - Saputo (TSX:SAP) and Kraft aren’t taking no for an answer and have appealed a Federal Court ruling that upheld new federal cheese regulations.

The large cheese makers want the Federal Court of Appeal to overturn an October ruling that dismissed their objections to rules regarding the content of both domestic and imported cheese. "We continue to believe in our position in this case so we will await a higher court decision," Saputo spokeswoman Karine Vachon said Friday.

Parmalat, one of the original litigants, is not listed in the appeal, filed earlier this month.

The appellants have yet to file a brief with their arguments for why Justice Luc Martineau should have granted a judicial review.

A hearing is expected in late spring or next fall.

The companies object to changes to the Food and Drugs Act and Agricultural Products Act that took effect last December. The government first published the amendments a year earlier to give cheesemakers time to adapt.

The changes require cheesemakers to use more full-fat milk and less of the ingredients typically labelled as milk solids.

The companies argue the rules, supported by dairy farmers, would boost their costs, raise prices for consumers and threaten the viability of Canada as a cheese-making country.

Chief executive Lino Saputo Jr. has said he feared the technology developed by his company to improve the quality and consistency of its product will not be applicable under the new rules.

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