Ontario Farm Products Marketing Commission

News: Release of the Decision of the Commission Panel

In the matter of: The Farm Products Marketing Act, R.S.O. 1990, c.F.9
And in the matter of: Sections 4, 5, 6 and 7 of Regulation 440- Vegetables for Processing - Marketing

And in the matter of: Jema International Food Products Inc.
To: Jema International Food Products Inc.
1232 County Road 20
Leamington, ON
N8H 3V7

Attn: Mr. Franco Cammuso

("Jema")

And To: Ontario Processing Vegetable Growers
435 Consortium Crt
London, ON
N6E 2S8

Attn: Mr. John Mumford

("OPVG")

Before

Deborah Whale, Chair; Anna Andres, Member; Tom Richardson, Member

Apperances

For Jema

Tim Hogan, Counsel to Jema
Franco Cammuso, General Manager

For OPVG

Rob Wilson, Counsel to OPVG
John Mumford, General Manager
Ken Hamm, Producer
Phil Richards, Past Chair of OPVG

Decision and Order of the Commission

A hearing was convened by the Ontario Farm Products Marketing Commission ("the Commission") on Tuesday, March 20, 2012, in the Farm Products Marketing Commission Boardroom on the 5th Floor of the Ontario Government Building, One Stone Road West, Guelph, Ontario.

The purpose of the hearing was to consider:

  1. whether Jema has failed to comply with or has contravened any term or condition of its licence to process vegetables under Regulation 440, or the Farm Products Marketing Act, the regulations, the plan or any order or direction of the Commission;
  2. whether to require that Jema furnish the Commission with security;
  3. whether to require Jema to pay a penalty;
  4. whether the Commission should impose terms and conditions on Jema's licence as a processor of vegetables: and,
  5. whether to suspend or revoke Jema's licence as a processor of vegetables.

At the beginning of the hearing, counsel for Jema admitted that Jema had failed to meet certain obligations under the Farm Products Marketing Act ("Act") with respect to the 2011 tomato crop. This included Jema's failure to pay growers for tomatoes, to pay crop insurance premiums on behalf of growers, and to deduct grower licence fees and remit them to OPVG as required under the Act. Counsel for Jema advised the Commission that Jema's failure to comply with these requirements was not willful, but occurred due to unexpected financial circumstances.

Counsel for Jema indicated that Jema and OPVG had arrived at a proposed agreement for settling the matters that were the subject of the hearing. He and counsel for OPVG presented the terms of their proposed settlement, and asked that the Commission approve them, and order them into effect.

After questioning of counsel and representatives of Jema and OPVG, and Mr Hamm, the grower present at the hearing, the Commission decided to approve in principle, the terms of the settlement proposed by Jema and OPVG.

Therefore, Pursuant to paragraph 3(1) of the Farm Products Marketing Act and section 5 and subsection 7(1) of Regulation 440, the Commission orders that:

  1. Jema's licence to process vegetables under Regulation 440 will continue in effect and shall be subject to the following terms and conditions:
    1. On or before May 15, 2012, Jema shall make full payment to the Ontario Processing Vegetable Growers in the amount of $363,977.81 and reasonable interest in an amount to be agreed on by OPVG and Jema. This represents amounts owing to producers and OPVG in respect of the 2011 crop of tomatoes purchased by Jema;
    2. On or before May 18, 2012, Jema shall provide the Commission with an irrevocable letter of credit issued by a Schedule "A" Canadian bank in the amount of $250,000 as security for the performance of Jema's obligations under the Farm Products Marketing Act. The letter of credit shall be in a form acceptable to the Commission and reasonably acceptable to OPVG and shall have an effective date that is on or before May 18, 2012 and an expiry date that is no earlier than November 30, 2012;
    3. On or before August 1, 2012, Jema shall provide the Commission with a second irrevocable letter of credit issued by a Schedule "A" Canadian bank in the amount of $250,000 as security for the performance of Jema's obligations under the Farm Products Marketing Act. The letter of credit shall be in a form acceptable to the Commission and reasonably acceptable to OPVG and shall have an effective date that is on or before August 1, 2012 and an expiry date that is no earlier than November 30, 2012.
  2. In the event that Jema fails to comply with or contravenes any of the above terms and conditions, upon notice in writing to that effect by OPVG to the Commission and to Jema's counsel, Jema's licence shall be revoked by the Commission without recourse to a hearing.

Dated at Guelph, Ontario this 21st day of March, 2012

Deborah Whale
Vice Chair, Ontario Farm Products Marketing Commission

The Minister's Directive to Ontario Farm Products Marketing Commission Regarding Compliance With The Agreement on Internal Trade Panel Report on Dairy Blends

Regulation 439/10 brought into force to provide greater flexibility and stability to Ontario's hog marketing system.

2009 HIAC Summary Report is now available -

The 2009 HIAC Summary Report is now available for viewing. The report provides a synopsis and listing of the recommendations resulting from the committee's work from November 2008 to June 2009.

To request a copy of this summary please contact:

Emily MacDonald
Ontario Farm Products Marketing Commission
Administrative Services Representative
519.826.3437
email: emily.macdonald@ontario.ca

November 25, 2010 - Ontario Farm Products Marketing Commission - Decision - Ferndale Vineyards Inc.

Other Information:

 


For more information:
E-mail: ontariofarm.productsmarketing.omafra@ontario.ca
Author: OMAFRA Staff
Creation Date: 12 June 2008
Last Reviewed: 04 July 2011