A proposed change in federal rules to clarify what a "made in Canada" label means on agricultural products is a step in the right direction, say two major farm groups on P.E.I.

'They're buying apple juice that's labelled "product of Canada" but the concentrate probably came from China or somewhere else.'— Raymond Loo, Certified Organic Producers Co-op

Under the proposed change, announced by Prime Minister Stephen Harper on Wednesday, the designation — either "made in Canada" or "product of Canada" — would only apply to food grown or produced in Canada. Currently, anything can bear that label as long as 51 per cent of the cost of creating it is spent in Canada.

The government plans to consult with key stakeholders over the proposed rule change.

Ian MacIsaac, executive director of the P.E.I. Federation of Agriculture, said Canadian food products must meet high standards and Canadians deserve to know what they're buying.

"It's a very positive move for our members and for consumers in general," said MacIsaac.

"We're very pleased that the federal government has recognized the need to clear up what exactly a 'product of Canada' label really means, and what it does mean to have a product that's made in Canada."

Raymond Loo, past president of the P.E.I. Certified Organic Producers Co-op, said Canadians are making more of an effort to buy Canadian-grown food, and the change would make it easier.

"It is one of the complaints that the agriculture community, whether it be organic or conventional, has had for a long, long time," said Loo.

"It's very confusing for consumers when they're buying apple juice that's labelled 'product of Canada' but the concentrate probably came from China or somewhere else."

Loo would like the policy to go a step further, with rules about what can be labelled locally grown or produced.