About Us
Structure of NHPPA
When consulting industry members on the structuring of the NHPPA, small and medium sized manufacturers voiced concern about the NHPPA being taken over by large companies if a membership organization structure was adopted. Whether or not this concern is warranted, there is a perception that some trade organizations in both Canada and the U.S. operate for the benefit of large members when the interests of large and small manufacturers conflict. For example, the Natural Products Association and the Council for Responsible Nutrition in the U.S. were cited as groups supporting the FDA’s Interim Final Rule on Good Manufacturing Practices for Dietary Supplements. Support for this Interim Final Rule is viewed as significant in that the new GMPs are expected to drive many small and medium manufacturers out of business. The FDA states in the Rule:
“We find that this final rule will have a significant economic impact on a substantial number of small entities Establishments with above average costs, and even establishments with average costs, could be hard pressed to continue to operate. Some of these may decide it is too costly and either change product lines or go out of business. The regulatory costs of this final rule will also discourage new small businesses from entering the industry. The DS [industry] has been characterized by substantial entry of small businesses”.
Because the NHPPA views the survival of small and medium manufacturers as vital to the NHP industry, it was decided to adopt a board-only structure. Voting membership will be limited to 5 to 7 members who will be responsible for electing the NHPPA Board. This will prevent the NHPPA from being taken over to promote the interests of one segment of the industry at the expense of other segments of the industry.
- ensures that the NHPPA is moving in the direction its stakeholders want it to move in;
- ensures that the NHPPA is getting the benefit of the input of its stakeholders, and
- better positions the NHPPA to obtain the co-operation of its stakeholders in working together on initiatives the stakeholders have requested.
The NHPPA will involve its stakeholders in the decision making and direction of the organization by taking direction from an Advisory Board of stakeholders. There is currently an interim Advisory Board fulfilling this role. A final Advisory Board will be selected annually by those NHPPA stakeholders who join the NHPPA as Associates. All NHPPA Associates will also have the right to submit proposals and comments to both the Advisory Board and the NHPPA Board.
