Annual report for fiscal 2021–2022

Message from the chair

In 2021–22, the Ontario Farm Products Marketing Commission ("the Commission") made significant strides in its commitment to become a best-in-class regulator.

Over the past year, we placed a special emphasis on continuous improvement and leading by example, dedicating our time and resources to address any and all areas of non-compliance and embedding within our operations new processes to enhance our internal efficiencies. We updated our memorandum of understanding with the minister after conducting a comprehensive review of its contents, for example, and completed work to ensure we were in compliance with the enterprise-wide planning and reporting requirements prescribed, as another.

The Commission also focused on further strengthening its external and internal relationships, delivering a considerable number of stakeholder-centric activities to empower marketing boards and representative associations to better understand, and adhere to, their delegated authorities. We are proud of the productive and robust relationships that we continue to have with these marketing boards and representative associations, especially as we seek to cultivate and nurture new relationships with other partners across the sector such as trade organizations. Internally, we have worked to ensure greater alignment and collaboration with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) and our relationship with the minister continues to be as strong as ever.

Sustaining these partnerships will be critical as we jointly strive to ensure that the regulated marketing system works effectively and provides for the sustainability and growth of the sector in the province of Ontario.

Amy Cronin
Chair, Ontario Farm Products Marketing Commission

Role of the Commission

The Ontario Farm Products Marketing Commission ("the Commission") is a non-board governed provincial agency established under the authority of the Ministry of Agriculture, Food and Rural Affairs Act (MAFRAA), and exercises the powers given to it under the Farm Products Marketing Act (FPMA), the Milk Act (MA) and O. Reg. 68/98 under the Commodity Boards and Marketing Agencies Act (CBMA).

The Commission is authorized to make independent regulatory decisions. It reports, and is directly accountable, to the Ontario Minister of Agriculture, Food and Rural Affairs. The minister, in turn, is accountable to Cabinet and the legislature for the Commission's fulfillment of its legal authority and for reporting on the Commission's affairs.

As a non-board governed provincial agency, the Commission does not have a specific mandate prescribed in the MAFRAA or other acts, and is not required to receive a mandate letter from the Government of Ontario. Based on the authorities provided to the Commission, the Commission summarizes its mandate as follows:

The Commission works to help drive the province's regulated marketing system forward. This is done to enable prosperous, thriving and dynamic agri-food industries within Ontario's economy, and to promote investment confidence.

This is done by:

1. Administering the provisions of the FPMA and the MA and certain regulations governing regulated marketing, making regulations under these acts governing regulated marketing and overseeing the activities of Ontario's marketing boards and section 12 (of the FPMA) representative associations to ensure that:
   1. marketing boards operate within the powers and authorities given to them; and,
   2. the lines of accountability are maintained.
2. Fostering enhanced stakeholder collaboration to achieve whole sector solutions through Industry Advisory Committees (IACs), and by advocating for Ontario's interests locally, nationally and globally.
3. Providing leadership and education in the form of advice, facilitation and direction to Ontario's marketing boards and section 12 representative associations in order to increase the effectiveness and efficiency of the regulated marketing system.
4. Directing the development and implementation of policy or regulations related to regulated marketing in Ontario in consultation with the minister and ministry.

Vision: prosperous, thriving, dynamic agri-food sector

The Commission works to help drive the province's regulated marketing system forward, enabling the agri-food sector to be successful in the marketplace. Passionate about supporting our stakeholders and growing the sector through the regulated marketing system, the Commission is focused on bringing Ontario food products to the tables of consumers, locally and globally.

As a regulator, the Commission is actively listening to the diverse needs of marketing boards and section 12 representative associations, and its value chain partners. It conscientiously brokers progressive, whole-sector solutions for this dynamic and competitive industry. The Commission works diligently to build respect, trust and collaboration between all commodity groups, producers, processors and their stakeholders.

Mission: Supporting the growth of Ontario's agri-food value chains so they are robust, creative and adaptive to change.

Working with our sector partners, the Commission provides oversight and authority to Ontario's regulated marketing system in order to enable whole sector solutions that lead to a more robust sector and economy.

Core values/guiding principles

• lead by example
• strive for excellence
• build and reinforce trust
• whole-chain perspective

Commission team

The Commission comprises a chair, vice chair and five members, all of which are appointed by the Lieutenant Governor in Council.

The diverse membership is made up of producers and processors with a variety of business, industry and commodity experience.

2021–22 members (as of March 31, 2022)

Amy Cronin, chair
First appointed to the position: May 07, 2020
Appointment expiry: May 06, 2022

Valerie Gilvesy, vice chair
First appointed to the position: August 17, 2017
Appointment expiry: August 16, 2022

Robert Anderson, member
First appointed to the position: May 13, 2015
Appointment expiry: May 12, 2022

Dan Cohoe, member
First appointed to the position: May 27, 2015
Appointment expiry: May 26, 2022

Bette Jean Crews, member
First appointed to the position: April 18, 2012
Appointment expiry: April 17, 2022

Ralph Dietrich, member
First appointed to the position: May 23, 2019
Appointment expiry: May 22, 2024

Cameron McWilliam, member
First appointed to the position: December 31, 2018
Appointment expiry: December 30, 2023

The Commission is also supported by the Ontario Farm Products Marketing Commission Secretariat ("the Secretariat") who provide Commission members with administrative support, advice, information and policy analysis on issues impacting each commodity.

The Commission's strategic measures of success

The Commission has developed several measures of success to help articulate desired strategic outcomes and provide direction to help inform its approach and activities. The measures are linked to, and align with, the performance targets and performance measures outlined in the 2022–25 business plan and discussed later herein.

Stakeholder focused

• The Commission's oversight and activities are valued by the marketing boards and section 12 representative associations, as well as associated value chain stakeholders.
• The Commission's focus on goals and objectives leads to efficient and transparent decisions.
• The Commission's decisions can be efficiently communicated to stakeholders with a clear understanding of the goals, responsibilities and authorities of the Commission.
• The Commission's involvement leads to enhanced regulation, solutions and outcomes that enable and promote success in the sector.
• More sector-wide value-chain collaboration develops through encouraging and utilizing IACs.
• The Commission earns stakeholder trust through its transparent communication and information sharing.
• Commission information is available online with appropriate access to enable stakeholders and the public to find pertinent information easily.

Best in class regulator

• The Commission evaluates its tools, processes and mandated functions on a regular schedule to determine the most productive and effective methods to achieve its goals. On completion of the evaluation, adjustments are created, and the new procedures are put into use. Histories of adjustments to processes are maintained for a record of progress.
• The strategic plan of the Commission is reviewed annually.

Professional team

• The Commission increases collaboration with the Minister, Ministry of Agriculture, Food and Rural Affairs and, through OMAFRA, other ministries to enable whole-sector approaches.
• The Commission provides resources, training and coaching to strengthen leaders.
• The Commission regularly and objectively evaluates its operations and performance.
• All stakeholders in the regulated sector value chain increasingly understand the value provided by our professional team.

Efficient, effective and creative team

• The Commission's unique position in the sector and with the ministry is leveraged for positive results.
• Established, high-functioning, collaborative value-chains that respect a variety of approaches.
• The successes of the Commission, as well as Ontario's regulated stakeholders and value chain partners, are recognized.

2021–22 accomplishments

Continued delivery during COVID-19

2021–22 and the second year of the COVID-19 pandemic did not add any net new challenges to the Commission in the execution of its activities and the fulfillment of its legal authorities:

• The Commission continued to hold its meetings virtually, transitioning to the Zoom technology to better support the needs of its members and meeting participants.
• The chair and the secretary/director met virtually with their stakeholder counterparts in a number of leadership meetings held throughout the year.
• As the year progressed, IACs regained momentum after slowing down slightly in 2020–21 as a result of the pandemic.
• Commission members and Secretariat staff attended marketing boards' and representative associations' annual general meetings, industry meetings and other events, which were predominantly held using a virtual or hybrid model.
• During 2021–22, the Commission received only one regulatory amendment request from industry related to COVID-19, the purpose of which was to accommodate the health and safety measures of industry participants.

Driving strategy, operations and governance

The Commission made significant progress on better defining and continuously improving its strategy, operations and governance. These efforts help to advance its commitment of leading by example:

• In December of 2021, a new memorandum of understanding (MOU) between the chair and the minister was signed after a comprehensive review of its contents, replacing the previous memorandum that was signed in 2011.
• In June of 2021, the Commission approved its new 2021–24 strategic plan, which had been developed after extensive consultation in 2020–21.
• Building on the strategic plan, the Secretariat developed an operational plan for 2021–22 after undertaking a significant exercise to define, understand and analyze all of the work and/or activities anticipated by the Secretariat in direct support of the Commission as a non-board governed agency of the government and as part of the Policy Division of OMAFRA. This exercise, and the subsequent operational plan, enabled more effective operational planning and delivery expectations by weighing the capacity (time/effort), human resources (people) and budget (direct operating) available to do the work in general, and the corresponding risks, implications and opportunities associated overall.
• The Secretariat completed procuring a third-party consultant to carry out a governance review of the Commission, to be undertaken and completed in 2022–23. This project will address the final outstanding recommendation from the Treasury Board Secretariat's Agency Modernization Initiative, and provide findings, recommendations and guidance that will help better define the goals, deliverables and work of the Commission as it looks to modernize its approach in delivering on its regulatory responsibilities.
• The Commission, supported by the Secretariat, also resumed its governance 101 training for its stakeholders, delivering a workshop over two half-days on December 1 and December 2, 2021.

Ensuring agency compliance

In 2021–22, the Commission also focused resources on ensuring compliance with the requirements of the Management Board of Cabinet's Agencies and Appointments Directive, as well as other corporate and legislated requirements:

• A number of annual reports and business plans were drafted, approved and published to bring the Commission into full compliance with these outstanding requirements from previous fiscal years.
• Annual and quarterly compliance and reporting activities were embedded into the operations of the Secretariat to ensure adherence with the Agencies and Appointments Directive, the Accessibility for Ontarians with Disabilities Act and the Emergency Management and Civil Protection Act.

Agency resourcing

• The Commission membership remained consistent during the 2021–2022 fiscal year.
• The process to appoint a new Commission member was undertaken during 2021–22, however the appointment of William George by the Lieutenant Governor in Council, was not completed until April 7, 2022 (fiscal period 2022–23).
• The Ontario Farm Products Marketing Commission Secretariat held firm on its allocated Full-Time Equivalents (FTEs).  Staff changes did occur resulting from staff accepting new development assignments elsewhere in the OPS, retirements and OPS exits.

Performance targets: overview

To carry out its role, the Commission focuses on four key areas of work within two key areas of focus (i.e., Regulated Marketing Policy and Operational Coordination and Management).

The first, core agency work, focuses on the commission's regulated marketing policy efforts and includes activities with each of the marketing boards and section 12 representative associations. This work involves regulatory amendments, relationship management, reporting and compliance, for instance. The Commission and Secretariat focus most of their efforts on this area of work.

The second, project work, includes temporary endeavours with definite beginning and end dates that develop or deliver clarifications, enhancements or supports for the core agency work area.

The third, core compliance work, focuses on maintaining the Commission's and the Secretariat's compliance with applicable directives, legislation, policies and regulations as an agency of the Government of Ontario.

The fourth, core corporate work, includes efforts by Secretariat staff that relate to being employees of OMAFRA and the Ontario Public Service, such as performance planning, that may not directly relate to the Commission's work.

Performance targets: core agency work

Representing the bulk of its efforts, the Commission, supported by the Secretariat, achieved the following in 2021–22:

• At the request of the Ontario Flue-Cured Tobacco Growers' Marketing Board, the Commission amended:
  • Ontario Regulation 306/09: Tobacco — Plan, to update the composition of the marketing board from a Commission-appointed board to one elected by producer members; and,
  • Ontario Regulation 208/09: Tobacco — Marketing, to establish a licensing system for tobacco producers and provide the marketing board with the authority to set and collect licence fees.
• At the request of the Ontario Potato Board, the Commission amended:
  • Ontario Regulation 247/99: Potatoes — Marketing, to change the name of the "soups and stews" negotiating agency to the "frozen products" negotiating agency, to provide processing potato negotiating agencies with the ability to decide whether to appoint an observer to witness negotiations and to remove outdated references to the Farm Products Grades and Sales Act and the Canada Agricultural Products Act (Canada).
• At the request of the Grain Farmers of Ontario, the Commission amended:
  • Ontario Regulation 484/09: Grain — Plan, to remove a requirement for the marketing board to undertake a mandatory review of its district structure every five years; and,
  • Ontario Regulation 485/09: Grain — Marketing, to remove restrictions on the Wheat Price Risk Mitigation Fund, to delegate authority to the marketing board to establish funds consistent with its mandate and to revoke provisions related to wheat marketing no longer in use.
• At the request of the Dairy Farmers of Ontario, the Commission amended:
  • Regulation 761: Milk and Milk Products and Regulation 753: Grades, Standards, Designations, Classes, Packing and Marking under the MA, to give producers the option to store larger amounts of cow and goat milk in vertical bulk tanks on-farm, to help reduce the burden and costs for dairy processors and to stimulate economic growth in the sector while maintaining strong health and safety standards.
• The Commission brought 33 negotiated agreements and three arbitrated awards into force for apples, chicken, eggs (pullets), grapes for processing, potatoes, seed-corn and vegetables for processing.
• The Commission issued 30 licences to grape processors.
• The Commission made:
  • 88 appointments to IACs for apples, asparagus, beans, berries, chicken, dairy, eggs, grain, grapes for processing, hatching eggs and chicks, pork, sheep, veal and vegetables for processing
  • Two appointments to the Ontario Greenhouse Vegetable Growers and the Ontario Processing Vegetable Growers Marketing Boards
  • One appointment to an arbitration panel for vegetables for processing (cucumbers)
• The following 14 marketing boards and one representative association participated in a review with the Commission: Asparagus Farmers of Ontario, Berry Growers of Ontario, Chicken Farmers of Ontario, Dairy Farmers of Ontario, Grape Growers of Ontario, Ontario Apple Growers, Ontario Bean Growers, Ontario Broiler Hatching Egg and Chick Commission, Ontario Fresh Grape Growers' Marketing Board, Ontario Greenhouse Vegetable Growers, Ontario Pork, Ontario Potato Board, Ontario Tender Fruit Growers, Turkey Farmers of Ontario and Ontario Canola Growers' Association.
• The Commission met with its federal counterparts at the Farm Products Council of Canada, as well as stakeholder industry associations such as the Ontario Dairy Council and the Wine Growers of Ontario.
• Commission members and Secretariat staff participated in 14 IAC meetings held in 2021–22 for such sectors as berries, chicken, dairy, grain, grapes for processing, greenhouse vegetables and sheep.

Performance targets: project work

In 2021–22, efforts to enhance core agency work through temporary endeavours continued. The Secretariat supported the Commission in continuing to advance work on the following projects:

• The Secretariat continued to migrate web content from the gov.on.ca website to the more consistent and user-friendly Ontario.ca website.
• The Secretariat, as previously mentioned, developed a comprehensive operational plan for 2021–22, weighing the capacity (time/effort), human resources (people) and budget (direct operating) available to complete the work and/or activities anticipated and the corresponding risks, implications and opportunities.
• A third-party consultant was procured to complete a governance review of the Commission in 2022–23, which will provide recommendations to help the Commission better define its goals, deliverables and work in the pursuit of its modernization.

Performance targets: core compliance work

In 2021-22, the Commission dedicated a greater amount of its time and resources to address any and all areas of non-compliance. Through these efforts, the Commission, supported by the Secretariat, achieved the following:

• Nine mandatory requirements for 2021–22  under the Agencies and Appointments Directive, the Accessibility for Ontarians with Disabilities Act and the Emergency Management and Civil Protection Act, and other corporate requirements including:
  • the drafting, approving and publishing of the 2020–21  annual report
  • the drafting, approving and publishing of the 2022–25  business plan
  • the drafting, approving and publishing of an updated memorandum of understanding with the minister following a comprehensive review of its contents
  • the completion of an annual compliance attestation
  • the completion of quarterly risk evaluation and reporting
  • the completion of quarterly Agency Modernization Initiative reporting
  • the completion of quarterly expense information
  • the completion of an annual accessibility compliance report
  • the completion of an annual business services emergency plan
• Three mandatory requirements under the Agencies and Appointments Directive not fulfilled in previous fiscal years were fulfilled in 2021–22, including:
  • the approval and publishing of the 2019–20 annual report
  • the approval and publishing of the 2020–23 business plan
  • the drafting, approving and publishing of the 2021–24  business plan

Performance measures

The performance measures identified in the 2022–25 business plan focused on the Commission's core agency work as part of regulated marketing efforts and engagement with the 22 marketing boards and three section 12 representative associations that it oversees. While some measures also touched on the Commission's efforts related to agency compliance, corporate initiatives and/or projects to support improvements or other opportunities, only those that relate to the Commission's core agency work were able to be meaningfully quantified.

The table below lists the results realized during the 2021–22  fiscal year for these performance measures:

Note: An agency governance review project that will be completed during 2022–23 is expected to include a review of the performance measurement approach for the agency, for use in future Commission business plans and annual reports.

Financial performance

The Commission's resource requirements, including staffing and financials, are absorbed by OMAFRA and are incorporated into the ministry's business plans and financial statements, which are subjected to review by Ontario's Auditor General.

During the 2021–22 fiscal period, OMAFRA allocated $573,000  for the direct operating expenditures shared by the Commission and the Secretariat. Initially, a portion of these allocated funds were intended to support the hiring of consultants to carry out a variety of internal projects. After the completion of an operational plan by Secretariat staff, though, the decision was made to prioritize those resources for the delivery of a single governance review project to be executed by external consultants. The completion of a governance review project will satisfy an outstanding recommendation made by the Treasury Board/Management Board of Cabinet in its Agency Modernization Initiative. While this governance review project was expected to begin within the 2021–22 fiscal period, the project is now not anticipated to start until April of 2022 due to the timeframes associated with the procurement process. As such, this expense will be reflected in the 2022–23 fiscal period.

Like in 2020–21, expenses were reduced and cost savings were realized in 2021–22 due to the COVID-19 pandemic. Commission meetings and nearly all industry meetings continued to be held using a virtual format, which significantly reducing travel expenses. Additionally, while the Commission resumed its governance 101 training workshop, a virtual format was adopted, resulting in cost savings from previous workshops.

Actual expenditures for the period were $254,430 under the allocated budget.

Reporting of appointee remuneration

Glossary of terms

Ontario Farm Products Marketing Commission ("the Commission")

The Commission is a provincial agency (a non-board-governed regulatory agency) under the Management Board of Cabinet's Agencies and Appointments Directive (AAD). It does not have its own staff or organizational structure but relies on OMAFRA for support.

Ontario Farm Products Marketing Commission Secretariat ("the Secretariat")

The Secretariat is a branch within OMAFRA Policy Division. The director (secretary of the Commission) of the Secretariat has a dual reporting role to the Commission and to Policy Division's assistant deputy minister.

Regulated Marketing System

The Farm Products Marketing Act (FPMA), the Milk Act (MA) and MAFRAA govern the regulated marketing system in Ontario. Through acts, and overlapping federal legislation, provide Ontario farmers with the opportunity to market their commodities as a group through a compulsory marketing board system. The legislation outlines the powers and responsibilities of the participants in the regulated marketing system.

Marketing Boards

Marketing boards are corporate bodies established under the FPMA or the MA (termed "local boards" within the FPMA) that represent the interests of producers of a particular regulated product in the marketplace. Marketing boards are generally producer elected, controlled, and financed. Authority is delegated through the FPMA or the MA to each board to allow them to regulate the production and/or marketing of their commodities.

Current list of marketing boards:

• Asparagus Farmers of Ontario
• Berry Growers of Ontario
• Chicken Farmers of Ontario
• Dairy Farmers of Ontario
• Egg Farmers of Ontario
• Grain Farmers of Ontario
• Grape Growers of Ontario
• Ontario Apple Growers
• Ontario Bean Growers
• Ontario Broiler Hatching Egg and Chick Commission
• Ontario Flue-Cured Tobacco Growers' Marketing Board
• Ontario Fresh Grape Growers' Marketing Board
• Ontario Greenhouse Vegetable Growers
• Ontario Pork Producers' Marketing Board (Ontario Pork)
• Ontario Potato Board
• Ontario Processing Vegetable Growers
• Ontario Sheep Marketing Agency (Ontario Sheep Farmers)
• Ontario Tender Fruit Growers
• Ontario Tomato Seedling Growers' Marketing Board
• Seed Corn Growers of Ontario
• Turkey Farmers of Ontario
• Veal Farmers of Ontario

Section 12 Representative Associations

Section 12 of the FPMA allows Cabinet to designate an existing, incorporated producer association as the representative association for all producers of a specified farm product. The FPMA authorizes the association to collect a licence fee from those producers. These associations are not involved in the marketing of the commodity, but conduct programs to stimulate, increase and improve the production and/or marketing of the farm product by way of research, promotion, and other means.

Current list of section 12 representative associations:

• Flowers Canada (Ontario) Inc.
• Ontario Canola Growers' Association
• Ontario Ginseng Growers' Association

Industry Advisory Committees (IACs)

Industry Advisory Committees (IACs) are sector-specific committees enabled through the respective commodity's marketing regulation. These committees typically consist of a Chair who is a Commission member and are supported by Secretariat staff.

Current list of IACs:

• Asparagus Industry Advisory Committee
• Fresh Asparagus Industry Advisory Committee
• Bean Industry Advisory Committee
• Berry Industry Advisory Committee
• Broiler Hatching Egg and Chick Industry Advisory Committee
• Chicken Industry Advisory Committee
• Dairy Industry Advisory Committee — Milk
• Dairy Industry Advisory Committee — Transportation of Milk
• Dairy Industry Advisory Committee — Processors
• Eggs Industry Advisory Committee
• Fresh Apple Industry Advisory Committee
• Juice Apple Industry Advisory Committee
• Fresh Grapes Industry Advisory Committee
• Grain Industry Advisory Committee
• Grapes for Processing Industry Advisory Committee
• Greenhouse Vegetable Industry Advisory Committee
• Hog Industry Advisory Committee
• Sheep Industry Advisory Committee
• Tender Fruit Industry Advisory Committee
• Turkey Industry Advisory Committee
• Veal Industry Advisory Committee
• Vegetables for Processing Industry Advisory Committee

Secretariat's areas of focus

• Regulated marketing policy specifies work done by policy advisors with/for marketing boards and section 12 representative associations and/or related to the applicable legislation and regulations.
• Operational coordination and management specifies work done by all other Secretariat staff in supporting efforts across the agency and work done by the secretary/director in supporting efforts across the agency.