In This Section |
Annual Report For Fiscal Year
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| Author: | OMAFRA Staff |
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| Creation Date: | 30 July 2009 |
| Last Reviewed: | 30 July 2009 |
The Ontario Farm Products Marketing Commission (Commission) is a regulatory agency without a governing board. It is established under the authority of the Ministry of Agriculture, Food and Rural Affairs Act.
The Commission is responsible for the direct administration and supervision
of two pieces of legislation, namely, the Farm Products Marketing Act
and the Milk Act. In 2008-09, that supervision included 21 agricultural
commodity marketing boards and four Section 12 representative associations
established under the legislation. While supervision of enabling legislation
is a cornerstone of the Commission's agency mandate, the Commission also
provides strategic leadership and intervention in the form of advice and
facilitation. In addition, the Commission provides education services
where it can contribute to the effective operation of Ontario's regulated
marketing structure and the boards that operate under the legislation.
"Dynamic, competitive agri-food sectors"
"To lead, supervise and direct Ontario's regulated marketing system to effectively adapt to change"
The Commission:
The Commission is directly accountable to the Minister of Agriculture, Food and Rural Affairs for its performance in fulfilling its mandate and its compliance with government policies. The Minister, in turn, is accountable to Cabinet and the Legislature for the Commission's fulfillment of its mandate and for reporting on its affairs.
The Commission is the central figure in Ontario's regulated marketing system and holds an important public trust in the exercise of its duties. Through its actions, the Commission ensures that individual commodity boards operate in an effective and responsible manner with due regard to the impact of their decisions on the agri-food sector and consumers, while at the same time maintaining the public policy goals of the legislation.
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Gerald Kamenz Chair President Buckstop Farms Ltd., Spencerville. Past President, Ontario Federation of Agriculture. Past member, Canadian Federation of Agriculture's Environment and Science Committee; Canadian Farm Debt Mediation Appeal Board; Canadian Agri-Food Research Council. Appointed December 10, 2008 |
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Elmer Buchanan Vice-Chair Partner in Elmlea Farm (alpacas, llamas and angora goats), Peterborough County. Former Ontario Minister of Agriculture, Food and Rural Affairs. Retired vice-principal, elementary and secondary school teacher, Hastings County. Appointed June 20, 2007 Current Appointment Expires June 24, 2010 |
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Deborah Whale Vice-Chair Owner/operator Clovermead Farms (dairy, beef and veal), Wellington County. Past board member Farm Credit Canada. Ontario Livestock and Poultry Council, Chair of Insurance Committee. Ontario Agricultural Hall of Fame, Board of Directors. Poultry Research Council, Board of Directors. Ontario Institute of Agrologists, Board of Directors. Appointed March 10, 2004 Current Appointment Expires June 19, 2012 |
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Tom Richardson Member Retired Acting Assistant Deputy Minister of Policy, Agriculture and Agri-Food Canada. Appointed March 23, 2005 Current Appointment Expires March 22, 2013 |
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Carolyn Fuerth Member Partner in Ewe Dell Family Farms (sheep and cash crop, plus provincially inspected abattoir), Essex County. Founding member of Ontario Agri-Food Education Inc. Past director, Ontario Federation of Agriculture. Appointed March 10, 2004 Current Appointment Expires March 10, 2012 |
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Jim Clark Member Executive Director Ontario Cattle Feeders' Association. Former Senior Policy Advisor (Stakeholder Relations) for Office of the Ontario Minister of Agriculture, Food and Rural Affairs. Appointed June 20, 2007 Current Appointment Expires June 19, 2011 |
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Bob Aumell Member Owner/consultant Aumell Agri-Consulting, specializing in managing change in agriculture. Retired from providing credit services to Canadian farmers, with Farm Credit Canada. Appointed March 23, 2005 Current Appointment Expires March 22, 2013 |
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Anna Andres Member Partner in tender fruit farm, Niagara Region, and part owner Niagara Harvest (cherry processing facility). Past President Niagara Peninsula Fruit and Vegetable Growers Association. Former member Produce Arbitration Board, and Agriculture, Food and Rural Affairs Appeal Tribunal Appointed June 14, 2005 Current Appointment Expires June 13, 2013 |
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Dave Hope Chair Assistant Deputy Minister, Appointed September 4, 2004 |
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Gord Coukell Vice-Chair Owner/operator Alcoma Farms (dairy), Simcoe County. Former Chair, Dairy Farmers of Ontario. Chair Ontario Livestock and Poultry Council. Founding member Ontario Farm Animal Council. Appointed June 1, 2005 Appointment Expired May 31, 2008 |
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Taketo Murata Member Owner/consultant Global Agribusiness Solutions. Associate of the George Morris Centre. Former member Food and Consumer Products Manufacturers of Canada. Former President Hunt-Wesson Canada and ConAgra Grocery Product Companies of Canada and International. Appointed October 5, 2005 Appointment Expired October 4, 2008 |
The Commission's mandate is to provide strategic leadership and supervise the 21 marketing boards and four Section 12 representative associations established under the legislation. Utilizing a performance management approach, staff that provides support to the Commission assessed all marketing boards and representative associations against effectiveness indicators in three areas:
These assessments provided areas for the Commission to focus their attention on and offer assistance to identified marketing boards in order to improve the effectiveness of those boards.
As a result of staff assessments and recommendations, the Commission met with seven marketing boards over the course of the year. The focus of these meetings varied, depending on the particular issues facing that sector. At some meetings, the Commission further assessed the boards for financial sustainability, communications with producers, use of authorities, governance structure, stakeholder relations and responsiveness to industry challenges, and looked for evidence of strategic planning.
Following the review meeting with Grape Growers of Ontario (GGO), the Commission commended GGO for undertaking a review of its governance structure. The Commission told GGO that it needed to complete the update on its by-laws and election procedures and encouraged the board to incorporate its strategic plan into its business plan. The Commission later re-emphasized to GGO the importance of complying with these requests. The board has now completed work on its strategic plan. The Commission continues to work with GGO on governance issues.
The Commission encouraged Chicken Farmers of Ontario (CFO), during its review, to engage in strategic planning and to work jointly with stakeholders to address national issues. The Commission will be seeking information on CFO staffing issues, strategic planning and updates on Chicken Farmers of Canada on an on-going basis. To that end, the Commission has requested that the board meet with the Commission quarterly to discuss these and other issues.
Of the 21 marketing boards and four Section 12 representative associations, twelve have current strategic plans. During the year, two boards completed updating their plans. Another four are in the process of updating their plans.
The Commission met with six marketing boards to discuss identified issues.
All 21 marketing boards and three of the four Section 12 representative associations complied with their regulatory responsibility to file audited financial statements with the Commission. Staff that supports the Commission are following up with the one association to ensure the report is filed. Financial reports were communicated to producers of the respective commodities.
Commission support staff analyzed these audited financial statements to evaluate items such as solvency, transparency, operating reserves, risk and use of funds, and compliance with Commission expenditure guidelines. As a follow-up, board finances were a topic of discussion at all review meetings the Commission held with boards.
The Commission determined to take a strong leadership role with the Ontario Sheep Marketing Agency (OSMA) to determine the future of the agency with respect to a number of governance issues. These included consulting producers on what type of organization and services they want, the definition of a producer, an examination of OSMA's board and district structures, board/staff relationships, board strategic planning, and the board's understanding of its marketing authorities with required general regulations, board policies and procedures to be in place. The agency has been directed to examine its current district structure and develop options for change; develop a training and learning plan for the board and staff by May 1, 2009; and complete its strategic plan (including an implementation and communication plan) by September 7, 2009. A staff analyst supporting the Commission is working with the board to ensure completion of this work.
In its October 2008 decision, the Commission instructed Ontario Pork to develop a new structure and governance model for the board. The Commission accepted the plan presented by the board and is moving forward with that plan, pending the outcome of appeals that are currently before the Agriculture, Food and Rural Affairs Appeal Tribunal.
Due to a lack of resources, no information on succession planning or conflict of interest for use by boards was developed or posted to the Commission's website.
The Commission offered two workshops during the year for new marketing board directors and senior staff. A total of 14 marketing boards chose to participate in the April and November 2008 workshops, sending a total of 29 elected directors and senior staff.
The goal of these workshops was to assist new directors to become more effective members of their respective boards. Topics covered in the training included regulatory authority of marketing boards, understanding the role of the Commission and its expectations of boards, and areas of governance such as confidentiality and effective director behavior.
Participants engaged in lively discussion at both workshops and indicated the workshop was valuable in increasing their understanding of regulations, the role of the Commission, and expectations of members, directors and the chair.
Based on the previous year's assessment, the Commission offered a financial management seminar to marketing boards and representative associations in December 2008. A total of 34 directors and senior staff from 12 boards and associations participated in the day-long training. Several participants stated the most valuable part of the day was learning about defining value and developing measures of success along with improving financial reporting at the annual meeting. Several also found it insightful to learn about the role of the auditors versus the role of the board of directors.
The Commission, on approval of the Minister, conducted an expression of opinion vote on a proposal to create a single marketing board to replace the organizations that represent Ontario's corn, soybean and wheat producers. The vote was requested by the Ontario Corn Producers' Association, the Ontario Soybean Growers and the Ontario Wheat Producers' Marketing Board. The mail-in vote was held between September 9 and 30, 2008.
Producers registered with the three organizations received an information
summary and ballot with the following question:
"Are you in favour of a single marketing board for corn, soybeans
and wheat described as 'Grain Farmers of Ontario' in the enclosed
information summary?"
A total of 70.4% of corn, soybean and wheat producers representing 72.2% of the eligible acreage of those casting valid ballots voted in favour of the question. A total of 4,639 producers who received a ballot participated in the vote.
Based on the results of the vote, work has begun on the regulatory process necessary to create the new 'Grain Farmers of Ontario' marketing board. The Commission established an Oversight Committee, consisting of the chairs and vice-chairs of the three organizations, and three Commission representatives. (one of whom is chair of the committee)
In September 2008, the necessary regulation was filed to officially
designate Flowers Canada (Ontario) Ltd. as the representative association
of greenhouse floriculture growers. Following a meeting of the association's
board of directors with the Commission, the association filed its
annual report, audited financial statement, adjusted budget, list
of elected directors, updated operational plan, by-laws, and procedure
for collection of grower license fees with the Commission. Flower
growers had voted in favour of designating Flowers Canada (Ontario)
Ltd. as their representative association in 2007-08.
All of the marketing boards and Section 12 representative associations that met with the Commission for a review meeting demonstrated how they are collaborating within their respective industries.
During Chicken Farmers of Ontario's review meeting, the Commission encouraged the board to work jointly with stakeholders to address both provincial and national issues affecting processors.
Following release of its decision on the pork industry, the Commission communicated with pork producers on the status of the transition to the new open marketing environment. The Commission also met with Ontario Pork and with other stakeholders to discuss the decision.
Ontario Apple Growers agreed to work with the Commission to co-sponsor a Processing Apple Industry Forum to be held in July 2009. The forum will bring all sectors of the industry (juice and other processing) together, with the aim of building better communication between producers, marketers and processors. The idea for the forum originated with the Juice Apple Advisory Committee which is chaired by the Commission.
The Commission approved a policy to ensure the sharing of information between parties to an arbitration and the arbitrator prior to an arbitration hearing. The Commission now requires parties to a dispute to share their briefs with each other and the arbitrator, a minimum of three business days prior to the arbitration. At a minimum, a party's brief must contain the party's reasoning and evidence supporting its' final offer. Agencies in sectors that negotiate prices, terms and conditions have or are in the process of updating their negotiating guidelines to ensure adherence to the Commission's policy by 2010. The policy was followed by the 2009 processing vegetable sector with respect to a tomato price arbitration.
When issues arise within an industry, the Commission attempts to facilitate the development of solutions with the full involvement of producers and their processor/buyer partners. On occasion, the Commission deems that a formal hearing is the best alternate for resolving an issue within a sector.
The Commission called a hearing under the Ministry of Agriculture, Food and Rural Affairs Act and the Farm Products Marketing Act regarding the role and powers of the Ontario Pork Producers' Marketing Board. Based on a pre-hearing conference at which all interested parties identified issues they wanted the Commission to consider, the Commission determined the scope of the hearing.
The Commission's decision following the October 2008 hearing
contained four parts:
The Commission held a licensing hearing for Caneast Foods Ltd. after receiving a request from the Ontario Processing Vegetable Growers that the processor's license be reviewed. Based on evidence given at the hearing, the Commission concluded that Caneast Foods Ltd. had failed to comply with applicable legislation. The Commission required Caneast Foods Ltd. to provide the Commission with a signed irrevocable letter of credit in the amount of $10,000, to be held by the Commission for two years. In addition, the Commission stated it expects the Ontario Processing Vegetable Growers to facilitate a more positive working relationship between the board and Caneast.
Industry advisory committees continue to be an important vehicle whereby the Commission encourages dialogue among stakeholders. The Commission plays an active role in facilitating constructive industry discussions at these meetings. In 2008-09, the Commission and staff providing support to the Commission facilitated discussions in a number of commodity sectors - fresh and juice apples, processing grape, soybean, white bean, greenhouse vegetables, and tobacco.
The Commission re-established the Hog Industry Advisory Committee following release of its 2008 Pork Hearing decision, to provide input and feedback to the Ontario Pork Producers' Marketing Board as it moves away from sole authority for the marketing of hogs in the province. The committee, made up of representatives from the hog producing and processing sector, met weekly throughout the winter. Appeals before the Agriculture, Food and Rural Affairs Appeal Tribunal on the Commission's decision have put a stay on implementation of that decision, but the preparation work of the committee continues.
Through the Tobacco Advisory Committee, composed of the Ontario Flue-Cured Tobacco Growers' Marketing Board and industry stakeholders, a crop agreement for the 2008 crop was negotiated. This is the last such agreement as the role of the board is diminished given the removal of the quota system through a quota buy out by the federal government. Tobacco will still be produced based on a provincial licensing system with direct contracts between producers and licensed buyers of tobacco. Going forward, the Commission will be determining the future role of the board.
This initiative is a long term goal. It will continue to take considerable effort for signatories in all affected provinces and territories to reach unanimous agreement. The Commission continues to take a pro-active role in moving this initiative forward.
The Commission signed the revised P5 dairy agreement. The revisions made the agreement more functional by dividing it into two parts - operating and federal-provincial agreement. P5 members include Quebec, Ontario, New Brunswick, Nova Scotia and Prince Edward Island.
The Commission sent a letter to the National Farm Products Council (NFPC) supporting the need for both quota and levy orders to be submitted to NFPC in a timely manner so that both would be approved. The Commission believes that action is needed to maintain the integrity of the supply managed system for eggs.
The Commission continued to meet with Dairy Farmers of Ontario (DFO) and the Ontario Dairy Council (ODC) to discuss the issue of harmonized milk allocation policy between Ontario and Quebec. Under the Commission's lead, a tri-lateral agreement was reached in June 2008. The Commission, DFO and ODC agreed to a mechanism that would allow for the permanent, inter-provincial transfer of processing quota.
During 2008-09, the Commission, through its chair, reinforced
its position on supply management to Ontario signatories as opportunities
arose through speeches, attendance at meetings and correspondence.
Membership in NAASA, allows the Commission to share ideas and information with similar organizations in other jurisdictions. NAASA supports an environment that encourages participants in the regulated marketing sector to progressively adapt the regulated systems to new market environments. The Chair's participation in this forum promotes good will with regulatory agencies across the country and provides invaluable networking opportunities. Similar issues arise in many provinces and Ontario benefits from the experiences of other provinces, while sharing its experiences with them.
The Commission has a responsibility to ensure that regulations evolve to reflect market realities, to the benefit of Ontario. As marketing boards become pressured to do more for their producers to keep up with the pace of industry change and remain competitive, the Commission is committed to enhance competitiveness through regulatory change and the removal of regulatory barriers to investment and growth.
The Ontario Asparagus Growers' Marketing Board updated its local board regulations and organization by-laws. This work undertaken by the board was a direct result of the Commission's regulation modernization project.
As a result of producer complaints and Commission concerns over operations of the Ontario Sheep Marketing Agency (OSMA), the Commission directed OSMA to consult with sheep producers on several issues. One area of input was on what type of organization OSMA should be in the future to best meet the needs of producers. These consultations took place at fall district meetings of the board to which all producers were invited. The Commission has directed OSMA to examine its current district structure and develop options for change.
Following the announcement and commencement of the Federal government's Tobacco Transition Program, the Commission deemed it necessary to limit the actions of the Ontario Flue-Cured Tobacco Growers' Marketing Board to within the scope of the powers and authorities granted to it by the Commission under regulations 435 and 436. The Commission ordered the tobacco board to limit expenditures to those costs necessary to pay for day-to-day operations. The Commission specifically limited the board's ability to expend board funds on helping growers to transition out of tobacco, to determine a future role for the board, to pay for costs associated with the transition program, and on litigation. Further, the Commission ordered the board to ensure that all fees and other amounts charged to producers and buyers for the next year not exceed reasonable costs incurred by the board. These measures are in an effort to preserve the net assets held by the board.
Given that growers are exiting out of the production of tobacco,
the Commission will be continuing to look at the future role and
function of the tobacco board. The board has removed the tobacco
production quota system in Ontario and will not be granting any
person who receives payment under the program a right to produce
tobacco in Ontario.
The Commission is committed to providing enhanced, efficient and effective service to the regulated sector.
The Commission supported numerous regulatory amendments for marketing boards.
The Commission made changes in four sectors related to grower representation. A regulation governing Turkey Farmers of Ontario now stipulates that only producers elected to district committees are eligible for election to the board. Due to a reduction in grower numbers, the Commission with minister approval changed the ratio for electing district committee members in the apple regulation. Ontario Processing Vegetable Growers, due to the closure of the CanGro processing facility in Exeter and the resulting decline in grower numbers, sought a reduction in the number of directors on the board and the number of directors in District 2. Regulations affecting Ontario Apple Growers and Dairy Farmers of Ontario both now provide for newly elected directors to take office at the first meeting following the annual meeting.
The Commission also approved changes to the marketing authorities of two marketing boards. The Commission delegated to Ontario Sheep Marketing Agency the authority to fix prompt payment discounts, delayed payment penalties and interest on licence fees owing. The Commission amended the milk plan to provide for re-classification of 20 litre containers of un-homogenized milk back into class 2 and to provide for mandatory time temperature recorders as of August 1, 2008.
The Commission revoked two regulations that were no longer in
use (Burly Tobacco - Dissolution of Local Board and Marketing;
Rutabagas - Marketing) and repealed the Greenhouse trustee regulation.
Following negotiation processes, the Commission brought into force negotiated agreements and arbitrated awards in the following sectors - chicken, processing potato, processing grape, tomato seedling, processing vegetables and seed corn. The Commission appointed arbitrators for processing vegetables and processing grape negotiations, and in a matter between the Ontario Processing Vegetable Growers and Campbell's Soup on the carrot agreement. The Commission also appointed an observer for the Frito Lay and Ontario Potato Board negotiations.
The Commission licenses processors in the following industries - asparagus, processing grape, potato, tender fruit, processing vegetable - and dealers in the seed corn industry. A total of 343 processor/dealer licences were in effect in 2008. There were 16 more grape licences and 5 less vegetable licences than in 2007.
The Commission made several appointments over the course of the year:
The Commission initiated the use of meeting, self, and annual evaluation forms with a view to improving the effectiveness and efficiency of Commission meetings and member performance. One result was the decision to hold regular monthly meetings beginning in 2009, with meetings to be held the third Wednesday and Thursday of the month. Teleconference meetings continue to be used as needed and when appropriate.
The Commission's Governance Committee provided input into the Commission's strategic planning day which resulted in the Commission Business Plan for 2009-10. The committee also developed core competencies or position descriptions for Commission members and vice-chairs, which were later adopted by the Commission.
The provincial Conflict of Interest Commissioner approved the Commission's conflict of interest policy contained in its Code of Conflict. The Commission reviewed its responsibilities related to conflict of interest.
The Cabinet decision to move to a part-time chair was implemented
in fall 2008 with the appointment of a private citizen from the
agri-food sector. At the same time, the Ministry re-organized
its staff support to the Commission. The Commission Secretariat,
consisting of a Director/Secretary to the Commission, along with
an Executive Assistant and two Administrative Services Representatives
provides expert policy advice and support to the Commission. The
Regulated Marketing Unit, Strategic Policy Branch, consisting
of a Manager, a Senior Policy Advisor, six Marketing Analysts,
and one Administrative Services Representative provide policy
advice and support to the Commission.
The Commission operates under the budget of the ministry and therefore does not have its own audited financial statements. The Commission's resource requirements are incorporated under the ministry's business plan. A description of these resources is presented below:
Operating Expenditures
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Actual 2007-08 |
Actual 2008-09 |
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Salaries & Benefits
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$1,170,919
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$1,273,421
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ODOE
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$304,505
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$760, 874*
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Recoveries
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($)
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$3,300
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TOTAL
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$1,475,424
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$2,030,995 |
Commission Secretariat
Regulated Marketing Unit
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