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Challenge to new rules

This article was originally published in Foodnews

THREE Canadian cheese manufacturers filed a legal challenge this week to new regulations in the country that will force them to use more expensive ingredients, leading to higher production costs and retail prices. Saputo Inc, Canada's largest cheese maker, together with the Canadian divisions of Kraft Foods and Parmalat, said the regulations would limit their use of modified milk or dairy ingredients, requiring them to use more full-fat milk. While this would boost milk farmers' returns, cheese prices will have to be raised.

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