Overview

Regulatory authority for marketing boards in Ontario comes primarily from the Farm Products Marketing Act and the Milk Act. This legislation outlines the powers and responsibilities of the participants in the regulated marketing system.

Generally, the purpose of the two acts is to:

  • stimulate, increase and improve the production or marketing of identified farm products
  • provide for the control and regulation of the producing and marketing within Ontario of identified farm products
  • control the quality of dairy products (under the Milk Act)

Marketing boards are bodies corporate representing producers of one or more specific agricultural commodities in all, or in a specific part, of Ontario. Marketing boards are producer elected, controlled and financed. Various authorities are delegated to each board by the Ontario Farm Products Marketing Commission (commission) to regulate the production and/or marketing of the relevant farm product. All producers of the specified commodities are required to produce and/or market the products according to the board's regulations. A common authority delegated to boards is the authority to collect a mandatory licence fee from producers to fund their operations.

Each board's delegated authorities and structure are set out in:

  • A "plan" regulation that establishes the board and its governance. This is a Cabinet regulation.
  • A "marketing" regulation that establishes the authorities that have been delegated to the board by the commission and also the authorities that have been retained by the commission. This is a commission regulation. Each board brings its authorities into effect through its own regulations.

There are several other pieces of legislation and regulation that have impact on marketing boards and their authorities including, but not limited to, the Farm Products Marketing Act, the Milk Act, the Ministry of Agriculture, Food and Rural Affairs Act, the Commodity Board Members Act, and the federal Agriculture Products Marketing Act.

Criteria for review of requests by the commission

The commission will review all requests against several criteria including:

  • cost/benefit to the industry and province
  • strength of the strategic plan and operational plan
  • evidence regarding the extent to which information on the request for the establishment of a marketing board including the proposed program and its costs and benefits, has been provided to and discussed with all producers of the product
  • evidence regarding the extent to which information has been provided and discussed with other affected parties (such as dealers, processors, trade, consumers)

Applicant group

A group of producers in Ontario or any part thereof request to the commission that a marketing board be established to control and regulate the production or marketing of a farm product. The commission must be convinced the applicant group is representative of the persons engaged in the production of the farm product before recommending the establishment of a marketing board to the Minister.

Steps in the application process

Achieving marketing board status is a multi-step process that normally takes several months or more to complete. Each application will be considered by the commission on an individual basis, using the following process as a guideline.

Step 1

The interested group contacts the Secretary to the commission, to express an interest in becoming a marketing board. A marketing analyst will be assigned to work closely with the organization to provide advice on developing a proposal to the commission and on an ongoing basis throughout the entire process.

Step 2

The applicant group submits a written request and a proposal to the commission (refer to Application requirements).

Step 3

The commission reviews the request and proposal (refer to Criteria for review of requests by the commission).

Step 4

The commission normally holds one or more meetings with representatives of the applicant group to discuss the proposal and application. Meetings may occur at any time during the process.

Step 5 (a)

The commission decides whether or not to proceed. The commission may require additional work to be done before proceeding. If, however, the commission decides not to proceed at this point, a revised proposal may be submitted at a future date.

Step 5 (b)

If the commission decides to proceed, the commission holds an Expression of Opinion vote among all producers of the farm product. The organization must work with the commission to develop a voting list of all producers in Ontario. Steps must be taken to ensure that the list is as comprehensive as possible. This may include the placement by the organization of a public notice in a general farm newspaper or trade magazine.

The purpose of the vote is for the commission to assess whether the majority of the Ontario producers are in favour of the establishment of a marketing board for that specific farm product and with applicant group's proposed program (read commission guidelines fact sheet Producer Expression of Opinion Votes).

Step 6

If the commission supports the proposal, it recommends to the Minister of Agriculture and Food that a marketing board be established. The recommendation would be accompanied by the commission's analysis of producer and industry support, an assessment of economic benefits and costs, and any other relevant information (refer to Criteria for review of requests by the commission).

Step 7

If the Minister supports the recommendation, notice of the proposed regulatory amendments are posted on the Ontario government's regulatory registry to seek any comments. If the Minister remains supportive after reviewing any comments, the Minister makes a recommendation to the Cabinet to approve the establishment of a marketing board. If Cabinet supports the Minister's recommendation, the Lieutenant Governor in Council makes the Plan regulation. Such regulations can only come into effect on January 1 or July 1. Simultaneously, the commission approves the Marketing regulation.

Step 8

To bring its delegated authorities into effect, a marketing board must approve its own regulation(s).

Application requirements

The request and proposal to the commission should include:

Data

  • a proposed definition of the farm product
  • a proposed definition of a producer of the farm product
  • an estimate of the total number of producers of the product in Ontario
  • a petition in favour of support for the proposal signed by at least 15% of the total estimated number of producers
  • any other information requested by the commission

Licence fee proposal

  • details regarding the initial suggested licence fee
  • the proposed procedure for collection of licence fees payable by the producer
  • details of any exemptions from payment of licence fees

Documentation on the level of support for the proposal by affected parties

  • evidence that the request for licence fee authority, the proposed program of the association and its cost/benefit has been provided to and discussed with all producers
  • evidence that the request for establishment of a marketing board and the proposed program has been provided to and discussed with all affected parties, such as the purchasers of the product and other appropriate stakeholders in the industry
  • information on support for or negative reaction to the proposal by the affected parties

Strategic plan

The long term (three to five year) strategic plan should address the following elements:

  • mission statement
  • situation assessment
  • strategy
  • long term objectives
  • financial projections, broken down by the various anticipated activities of the board
  • cost-benefit analysis for the industry

Operational plan

A one-year business operational plan should include the following:

  • objectives
  • action plans (such as marketing, research, education)
  • financial plan (for example, a monthly projection of income and expenses)
  • staffing and operation of marketing board office (such as location, proximity to producers and customers, responsibilities of staff)