Agricultural Marketing Boards in Ontario

In This Section

Topics

Agricultural Marketing Boards in Ontario

Author:	Graham Howe/OMAFRA
Creation Date:	20 June 2002
Last Reviewed:	6 August 2008

Introduction
Negotiating Boards
Boards with the Authority to Establish Price
Boards that Regulate Production and/or Marketing Through Quotas

Introduction

Approximately 60% of the value of all agricultural products produced by Ontario farms is marketed through twenty-one provincial marketing boards and three representative associations. In 2004/2005 that amounted to about $5 billion worth of farm commodities.

Marketing boards are primarily governed by farmers who are elected by their peers for terms of at least one year. The boards have electoral districts that strive for equitable representation of producers and production. One board has directors representing other sectors of their industry.

Marketing boards play an important co-ordination role in the marketing or selling of their commodities. The nature of that role is determined by each board's 'marketing plan'. These plans vary widely in the degree to which the board influences how producers sell their commodities and how companies that pur-chase agricultural commodities (i.e. food processors, dealers) source and purchase their requirements.

For example, some boards simply provide market information to their producer members and support research and promotion, while others also negotiate with processors to determine the price that will be paid to growers. Some take on the task of finding markets for all of the commodity produced by Ontario farmers and still others (six out of twenty-one), manage supply for the domestic market and, in some cases, the export market. These marketing functions all lend stability and predictability to the market for Ontario producers and the buyers of their commodities.

It is important to note that individual marketing plans change over time as market forces evolve. Regulated marketing systems adapt to meet the changing needs of buyers and producers; to adjust to changes in domestic and foreign marketplaces; to maintain orderly marketing; and to continue to work in the best interests of Ontario. The Ontario Farm Products Marketing Commission, an agency of the Ontario Ministry of Agriculture, Food and Rural Affairs, supports positive changes to marketing plans that are the outcome of discussions between a board and its industry partners.

The Commission is accountable for Ontario's regulated marketing system. It facilitates stakeholder discussions on individual marketing plans and it ensures the marketing boards operate within their authority. (To learn more about OFPMC, see its factsheet called "Role of the OFPMC in Ontario's Regulated Marketing System".)

Marketing boards also play an important role in research and promotion. The high cost of these activities can be more easily covered by a small contribution from each producer through the fees they pay to the board to cover its operating and program costs. The amount each producer contributes is based on the amount or value of their production. Investment in research and promotion helps every producer and their food industry partners. This is also true for the three 'representative associations' for coloured beans, canola and ginseng whose only authority is to collect a fee from growers to support research, education and promotion. Ontario has developed a reputation for quality products that are recognized around the world.

The province's twenty-one marketing boards can generally be divided into three categories based on what their marketing plan says about price discovery or quotas. These three categories are explained in the following tables.

In addition to the commodity-specific marketing functions that are outlined below, most marketing boards also provide the following common functions:

promoting their commodity to consumers and/or to those who purchase the product from the farm;
providing marketing information to their producer-members;
directly funding production and marketing research, or co-ordinating it from other sources; and
participating on industry advisory committees, as required, to improve their marketing system.

| Top of Page |

Negotiating Boards

The marketing plans for each of the following boards require each board and the companies that purchase their commodities to negotiate the minimum price that will be paid to producers and/or other terms and conditions of sale. The latter may in-clude the quality expected, total volume, delivery schedules etc. If an agreement is not reached by a predetermined date, the outstanding issues are settled by an arbitrator. Generally, buyers contract with individual growers for specific volumes prior to the planting season using contracts that have been approved by the board. These boards do not have the authority to limit production.

Marketing Board	Secretary/Manager	Unique Marketing Functions
Ontario Apple Growers Chair: Brian Gilroy	Kelly Ciceran P.O. Box 100 Vineland Station, Ontario L0R 2E0 (905)688-0990 (905)688-5915 (fax) kciceran@onapples.com	Annually negotiates prices and terms/conditions of sale for apples used in juice. Buyers contract with individual growers and pay them directly.
Grape Growers of Ontario Chair: Bill George Jr.	Debbie Zimmerman Box 100 Vineland Station, L0R 2E0 (905)688-0990 (905)688-3211 (fax) info@grapegrowersofontario.com www.grapegrowersofontario.com	Annually negotiates prices on an industry-wide basis for various classes of grapes used in wine, juice or jam; as well as prices for juice going into icewine and late harvest wine. Buyers contract with individual growers and payment cheques flow through the board to growers.
Ontario Potato Board Chair: David MacKenzie	Don Brubacher 485 Washington St. Elora, N0B 1S0 (519) 846-5553 (519) 846-8803 (fax) info@ontariopotatoes.ca www.ontariopotatoes.ca	Annually negotiates prices and terms/conditions of sale with individual companies for potatoes that will be processed into chips and soups/stews, or pre-peeled Buyers contract with individual growers and payment cheques flow through the board to growers for processing potatoes
Seed Corn Growers of Ontario Chair: Tim Kudroch	Executive Director - Mary Lynn Lister Santavy 825 Park Ave. West Chatham, N7M 5J6 (519) 352-6710 (519) 352-0526 (fax) info@seedcorngrowers.on.ca www.seedcorngrowers.on.ca	Annually negotiates growing premiums with individual companies for corn that will be sold as seed Buyers contract with individual growers and pay them directly
Ontario Soybean Growers Chair: Leo Guilbeault	General Manager - Dale Petrie Ontario AgriCentre Suite 201 100 Stone Rd.W Guelph, N1G 5L3 (519) 767-1744 (519) 767-2466 (fax) cansoy@soybean.on.ca www.soybean.on.ca	Annually negotiates terms of sale and charges for cleaning, handling and drying by dealers on an industry-wide basis Growers decide how much to plant and when to sell; buyers pay them directly
Ontario Tomato Seedling Growers’ Marketing Board Chair: Dave Dick	Lynda Baird Box 157 275 Talbot St. East Leamington N8H 3W2 (519) 326-4481 (519) 326-9062 (fax)	Annually negotiates prices and terms/conditions of sale with individual companies for tomato plants that will be used for processing tomatoes. Processors contract with individual seedling growers and pay them directly.
Ontario Processing Vegetable Growers Chair: Jim Reith	John Mumford 435 Consortium Court London N6E 2S8 (519) 681-1875 (519) 685-5719 (fax) opvg@opvg.org www.opvg.org	Annually negotiates prices and terms/conditions of sale with individual companies for 14 vegetables grown for processing – green beans, wax beans, lima beans, red beets, cabbage, carrots, cauliflower, sweet corn, cucumbers, green peas, peppers, pumpkins, squash and tomatoes. Processors contract with individual growers and pay them directly.

| Top of Page |

Boards with the Authority to Establish Price

The marketing plans for each of the following boards allow the board to 'set' the price that will be paid to producers and there are many ways in which a board can do this. Regardless of the method used, prices are established based on available market information including input from, or discussions with, buyers. Prices set by a board can be appealed to the Agriculture, Food and Rural Affairs Appeal Tribunal. These boards do not have the authority to limit production.

Marketing Board	Secretary/Manager	Unique Marketing Functions
Ontario Asparagus Growers’ Marketing Board Chair: Brenda Lammens	Denton Hoffman Box 587 1283 Blueline Road Simcoe N3Y 2N5 (519) 426-7529 (519) 426-9087 (fax) info@asparagus.on.ca www.asparagus.on.ca	Establishes annual prices, terms and conditions of sale for asparagus grown for processing. Processors contract with the board which then contracts with growers for a specific volume. Collects payments from processors on behalf of the growers.
Ontario Bean Producers’ Marketing Board Chair: Gilbert VanSteelandt	Tino Breuer 4206 Raney Crescent London N6L 1C3 (519) 652-3566 (519) 652-9607 (fax) whitebeans@ontariobeans.on.ca www.ontariobeans.on.ca	Producers can elect to market their beans independently. Presently most of Ontario’s beans are sold directly by producers to dealers. White pea beans not elected for direct sale, are sold by the board. These beans are delivered to board appointed dealer - agents who handle and store for the board. Board offers for sale by tender, a specific quantity at a set price based on international market conditions. Board pools returns from sales and pays growers.
Ontario Fresh Grape Growers’ Marketing Board Chair: Larry Hipple	Adrian Huisman Box 100 Vineland Station L0R 2E0 (905) 688-0990 (905) 688-5915 (fax) adrian@ontariotenderfruit.com www.ontariotenderfruit.com	Establishes prices, terms and conditions of sale. Licenses dealer/shippers who pay growers directly.
Ontario Greenhouse Vegetable Growers Chair: Len Roozen	Kristen Callow 245 Talbot St. W. Suite 103 Leamington N8H 1N8 (519) 326-2604 1-800-265-6926 (519) 326-7842 (fax) admin@ontariogreenhouse.com www.ontariogreenhouse.com	Publishes recommended prices for greenhouse tomatoes, cucumbers and peppers. Appoints agents who pay growers directly.
Ontario Pork Producers' Marketing Board Chair: Curtiss Littlejohn	(Vacant) 655 Southgate Drive Guelph N1G 5G6 (519) 767-4600 1(877)668-7675 (877-ONT-PORK) (519) 829-1769 (fax) comm@ontariopork.on.ca www.ontariopork.on.ca	Producers can contract to deliver directly to a processor; the board is party to these contracts. The board also sells market hogs on behalf of producers through con-tracts arranged with processors or on the spot market. All buyers pay the board, which then pays producers.
Ontario Potato Board Chair: David MacKenzie	Don Brubacher 485 Washington St. Elora, N0B 1S0 (519) 846-5553 (519) 846-8803 (fax) info@ontariopotatoes.ca www.ontariopotatoes.ca	Establishes weekly prices for fresh potatoes. Licenses packers who pay growers directly for fresh potatoes
Ontario Sheep Marketing Agency Chair: Allan Burn	Norma Collett 130 Malcolm Road Guelph N1K 1B1 (519) 836-0043 (519) 836-2531 (fax) general@ontariosheep.org www.ontariosheep.org	Sheep and wool are primarily sold through open market pricing; the board provides an optional forward contracting and pricing service for growers and meat processors. Appoints sales agents who pay growers directly.
Ontario Tender Fruit Producers’ Marketing Board Chair: Len Troup	Adrian Huisman Box 100 Vineland Station L0R 2E0 (905) 688-0990 (905) 688-5915 (fax) adrian@ontariotenderfruit.com www.ontariotenderfruit.com	Responsible for five tender fruits - peaches, pears, plums, sour cherries and sweet cherries. Establishes annual prices, terms and conditions of sale for product grown for processing. Processors contract with individual growers and payment cheques flow through the board to growers. Establishes weekly prices for tender fruit sold on the fresh market. Licenses fresh produce dealer/shippers who pay growers directly.
Ontario Wheat Producers’ Marketing Board Chair: David Whaley	Larry Shapton Ontario AgricCentre 100 Stone Road W. Suite 201 Guelph N1G 5L3 (519) 767-6537 (800) 943-2809 (519) 767-9713 (fax) generalmail@ontariowheatboard.com www.ontariowheatboard.com	A percentage of Ontario's wheat is sold by the board through its agents while most is sold off-board Producers have five pricing options through the board (cash price on de-livery; forward, minimum or basis pricing contracts; pooling).

| Top of Page |

Boards that Regulate Production and/or Marketing Through Quotas

The following boards have the authority to determine how much each farmer can produce and/or market through quotas. Generally, these provincial boards have an agreement with some or all of the other provinces to estimate future national demand for their commodity and to share the required production based on each province's historical share of the market. Prices that will be paid to growers are either:

set by the board based on avail-able market information as well as input from, or discussions with, buyers or
negotiated by the board with the buyers.

Marketing Board	Secretary/Manager	Unique Marketing Functions
Chicken Farmers of Ontario Chair: Bill Woods	Jennifer Mackie Box 5035 3320 South Service Road Burlington L7R 3Y8 (905) 637-0025 (905) 637-3464 (fax) info@cfo.on.ca www.cfo.on.ca	Allots production quotas to growers. Negotiates live prices for various weight categories with processors every eight weeks. Participates in a national supply program through Chicken Farmers of Canada.
Dairy Farmers of Ontario Chair: Bruce Saunders	Peter Gould 6780 Campobello Rd Mississauga L5N 2L8 (905) 821-8970 (905) 821-3160 (fax) general@milk.org www.milk.org	Allots production and marketing quotas to producers. Buys all milk sold off the farm (except contracted export milk) and sells it to dairies and processing plants. Sets prices for fluid and industrial milk based on the target return estab-lished by the Canadian Dairy Commission and the provisions of the P6 agreement. Has an agreement with five eastern provinces to pool returns from fluid and industrial milk sales. Negotiates the price of farm-separated cream with processors. Participates in a national program for industrial milk through the Canadian Milk Supply Management Committee.
Ontario Broiler Hatching Egg & Chick Commission Chair: Jim Rickard	Bob Guy 251 Woodlawn Rd. W. Suite 213 Guelph N1H 8J1 (519) 837-0005 (519) 837-0464 (fax) info@obhecc.com www.obhecc.com	Board of directors consists of four hatching egg producers who are appointed by the producer association and four hatchery representatives who are appointed by that industry's trade association. Allots production and marketing quotas to breeder growers and hatching egg producers. Establishes hatching egg and chick prices. Establishes terms and conditions of standard contracts between producers and hatcheries. Licenses hatcheries and broker/dealers who pay growers directly. Participates in a national supply program through the Canadian Broiler Hatching Egg Marketing Agency.
Egg Farmers of Ontario Chair: Carolynne Griffith	Harry Pelissero 7195 Millcreek Drive Mississauga L5N 4H1 (905) 858-9790 (905) 858-1589 (fax) eggboard@eggsite.com www.eggsite.com	Allots production and marketing quotas to producers. Establishes prices based on a national cost of production formula and market forces. Participates in a national supply program through the Canadian Egg Mar-keting Agency.
Ontario Flue-Cured Tobacco Growers’ Marketing Board Chair: Linda Vandendriessche	(Vacant) Box 70 Tillsonburg N4G 4H4 (519) 842-3661 (519) 842-7813 (fax) otb@ontarioflue-cured.com www.ontarioflue-cured.com	Allots basic and production quota to individual growers. Negotiates an annual guaranteed minimum average price for the total crop with guaranteed minimum prices for each of 70 tobacco grades. Sets an annual crop target after discussions with the leaf manufacturing companies and the leaf exporters' association through the Tobacco Advi-sory Committee. Conducts a Dutch Clock Auction at two locations through which all tobacco is sold. Buyers pay the board which then pays growers.
Turkey Farmers of Ontario Chair: Ingrid DeVisser	Janet Schlitt 100 Conestoga College Blvd. Suite 1120 Kitchener N2P 2N6 (519) 748-9636 (519) 748-2742 (fax) info@turkeyfarmers.on.ca www.turkeyfarmers.on.ca	Allots production and marketing quotas to producers. Establishes prices based on a cost of production formula and after discussions with processors regarding market conditions Participates in a national supply program through the Canadian Turkey Marketing Agency.

In This Section

Topics