WASHINGTON, D.C. REPORT

1
WASHINGTON, D.C. REPORT

• by
• Robert M. Reeves
• Institute of Shortening and Edible Oils
• Washington, D.C.

American Fats and Oils Association October 14,
2004
2
FDAs Trans Fat Labeling Regulation (7-11-03)

• Requires all foods containing trans fats ( 0.5
  g/serving) to include amount in Nutrition Facts
  Panel.
• Foods containing less than 0.5 g TFA/serving must
  declare zero in NFP.
• No nutrient content claims approved
• (e.g., trans fat free, reduced trans fat)
• Effective January 1, 2006

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Trans Fat Listed on a Separate Line
4
FDAs Advanced Notice of Proposed Rulemaking
(ANPR) on Trans Fat (7-11-03)

• Solicited comments on
• Nutrient content claims (e.g., trans fat free,
  reduced trans fat)
• Qualifying criteria for claims having saturated
  fat limits
• Footnote or disclosure statements (e.g., intake
  of saturated fat, trans fat and cholesterol
  should be kept low while maintaining a
  nutritionally adequate diet)

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Trans Fat ANPR (Continued)

• Comment period reopened September, 2003.
• Consider establishment of a percent daily value
  ( DV) for TFA.
• No authoritative bodies have set reference intake
  values for trans fat.
• Would DV eliminate need for footnote or
  disclosures?

6
Food Industry Preparation for TFA Labeling Rule

• Reformulation of food products to eliminate or
  reduce TFA
• Alternative sources of TFA-reduced products
• Modification of hydrogenation process
• Interesterified oils
• Natural oils (e.g., palm, corn, cottonseed)
• Trait enhanced oils (e.g., low linolenic soy, mid
  oleic soy, mid and high oleic sunflower)

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Challenges to Industry in Developing Trans Fat
Alternatives

• Functionality
• Technology
• Availability
• Economics

8
U.S. Dietary Guidelines 2005

• Official dietary advice from Federal Government
• U.S. Dietary Guidelines Advisory Committee (DGAC)
  recommendations to HHS and USDA in report of
  8-30-04
• Final guidelines expected in early 2005

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DGAC Recommendations Regarding Fats Oils

• High fat diets ( 35 energy) increase saturated
  fat intake and provide excess calories.
• Low fat Diets (EFA and may adversely affect HDL-C.
• Reduce saturated fat, trans fat and cholesterol
  to lower HDL-C.

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DGAC Recommendations (Continued)

• Consume 2 servings of fish per week for Omega-3
  fatty acids intake.
• Trans fat should be less than 1 energy.
• First reduce saturates, second reduce TFA and
  cholesterol.

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1 TFA Intake Limit Implications

• 1 TFA naturally occurring TFA (ruminant
  tissue) plus heat-generated TFA. No allowance
  for process-generated TFA
• No scientific evidence to support quantitative
  intake value.
• Difficult to achieve 1 TFA intake level at this
  time.

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1 TFA Implications (Continued)

• 1 TFA limitation begs for 1 daily value on food
  label.
• 35 TFA level required before effects on LDL-C
  or HDL-C observed.
• 2.6 TFA average U.S. intake.

14
Consumer Advocacy Group Actions

• CSPI petitions FDA to ban partially hydrogenated
  vegetable oil (PHVO) on 5-18-04.
• CSPI petitions FDA to require restaurants to
  identify foods containing PHVO on 7-22-04.
• Trans Free America challenges McDonalds
  restaurants on use of PHVO as frying medium.

15
Depiction of Heart Attack Victim in NY
Times(9-24-04)
16
IMO Shipping Regulations(Marpol Annex II
Revision)

• Substances carried at sea recategorized based on
  chemical and physical characteristics and
  environmental effects on marine life.
• Oils and fats category to change (more
  restrictive)
• Substance categories dictate type of ship for
  carriage

17
IMO Shipping Regulations (Continued)

• International Bulk Chemical (IBC) Code sets
  construction and equipment standards for ships.
• IBC lists fats and oils that may be carried after
  January 1, 2007
• Reclassification of oils/fats places them in Type
  2 ships
• Shipping capacity adequacy questioned
• Shipping rates affected?

18
Status of Bioterrorism Act Regulations of FDA

• Food Facility Registration (Interim Final Rule)
• Prior Notice of Imported Food (Interim Final
  Rule)
• Administrative Detention (Final)
• Recordkeeping (Proposed)

19
Oil Spill Prevention Control and Countermeasure
(SPCC) Rule Amendments

• Rule applies to all non-transportation onshore
  facilities having more than 1320 gallons of oil.
• New compliance date by which SPCC plans must be
  amended (February 17, 2006).
• New implementation date for amended SPCC plans
  (August 18, 2006).

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SPCC (Continued)

• Vegetable oil/animal fat differentiation from
  petroleum oils still not addressed
• Integrity testing of storage tanks
• Leak testing of valves and pipes
• Secondary containment
• Issues specific to vegetable oils/animal fats

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Key Food Legislation

• National Food Labeling Uniformity Act
• Requires state food laws to be uniform with
  federal law.
• Eliminates California Proposition 65 type
  statutes
• Food Allergen Labeling Act
• Labels food ingredients containing major food
  allergens in laymens terms e.g., casein (milk)
• Exempts highly refined oils
• Level of allergenic material presence problematic
  (e.g., lecithin in flavoring, soy in fermentation
  cultures)

22
Congressional Outlook

• Presidential Election Year politics will prevent
  partisan agreement on most issues.
• Vast majority of 13 appropriations bills require
  placement in continuing resolution.
• Gallup poll disapproval rating 52 (10 pts higher
  than at 2002 elections).
• Expect continued deep divisiveness.

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Senate

• GOP likely to continue/expand majority (51-48)
• 5 Democratic retirements in south (GA, SC, NC,
  LA, FL)
• Democratic majority would require wins in all 7
  toss up contests. Highly unlikely.
• Early primaries damage to Republicans not as bad
  as expected.
• Economy and jobs picture improving.

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House of Representatives

• GOP may hold current 229 to 206 advantage
• Very difficult for Democrats to pick up 12 seats.
  (Incumbent win rate is over 90.)
• Redistricting helped GOP in 5 states (CO, KY, FL,
  VA, TX)

25
Pre-Debate Polls (9-30-04)

• GALLUP/CNN
• Bush 52 Kerry 44 (Sept. 24-28)
• PEW RESEARCH
• Bush 48 Kerry 40 (Sept. 22-26)
• ABC/Washington Post
• Bush 51 Kerry 45 (Sept. 23-26)

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Post-Debate Polls

• GALLUP/CNN
• Bush 49 Kerry 49 (Oct 1-3)
• Zogby
• Bush 46 Kerry 43 (Oct 1-3)
• ABC/Washington Post
• Bush 51 Kerry 46 (Oct 1-3)

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Bush Gaining Female and Black Vote

• (9-26-04)
• 2000 Election 2004 CBS/NY Times
• Women Gore 54 Bush 48
• Bush 43 Kerry 43
• Married Women Gore 48 Bush 59
• Bush 49 Kerry 32
• (6-10-04) (10-3-04)
• Black Voters Kerry 83 Kerry 73
• (PEW Poll) Bush 6 Bush 12

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Electoral State Tally (10-5-04)

• Leading
• States Electoral Votes
• Bush 31 292
• Kerry 16 200
• Leading Outside Margin of Error
• Bush 22 215
• Kerry 7 119