Executive Summary

The Ontario Farm Products Marketing Commission (commission) is at the core of Ontario's regulated marketing system and provides oversight and leadership to the province's 22 marketing boards and three section 12 representative associations (see Appendix 1 for Definitions and Appendix II for the Listing of Boards and Associations).

The commission actively works to implement its mandate and fulfill its regulated marketing and stakeholder collaboration initiatives by ensuring that individual commodity systems operate in an effective and responsible manner, while maintaining the public policy goals of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA).

The commission is a non-board governed provincial agency established under the authority of the Ministry of Agriculture, Food and Rural Affairs Act and exercises the powers given to it under the Farm Products Marketing Act (FPMA) and the Milk Act (MA).

One of the commission's key roles is to make regulations to delegate authorities to marketing boards, which the boards then use to represent the interests of producers and the sector. These authorities vary considerably among boards and may include powers to:

  • promote their commodity to consumers and/or to those who purchase the product from the farm;
  • provide marketing information to their producer-members;
  • directly fund production and market research, or co-ordinate it from other sources;
  • participate on industry advisory committees, as required, to improve their marketing system;
  • appoint members to negotiating agencies to negotiate the minimum price that will be paid to producers and/or other terms and conditions of sale;
  • set the price that will be paid to producers of a specific commodity; and/or
  • determine how much each farmer can produce and/or market through production quotas.

As an agency under the Agencies and Appointments Directive (AAD), the commission is required to submit an annual three-year plan that outlines its mandate, key objectives, and strategies to respond to the changing environment and support regulated marketing in Ontario.

Under the 2019-2022 Implementation Plan section, the business plan outlines how the commission will implement its objectives and identifies related measures of success.

OMAFRA provides resources to the commission to ensure that it has the ongoing capacity to fulfill its statutory and regulatory obligations, implement its strategic directions, and contribute to OMAFRA's strategic priorities.

The commission is directly accountable to the 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 mandate and for reporting on the commission's affairs.

The commission is supported administratively by staff members of the Ontario Farm Products Marketing commission Secretariat (Secretariat).

The commission's vision, mission and strategic objectives are built in support of the provincial government and the OMAFRA's priorities.

Vision: Dynamic, competitive agri-food sectors

Mission Lead: Supervise and direct Ontario's regulated marketing system to effectively adapt to change

Mandate: Advance an effective and accountable regulated marketing system that creates investment confidence and promotes economic growth in Ontario's agriculture and agri-food industries.

Strategic Objectives:

 

  1. Oversee and facilitate marketing board and representative association effectiveness and accountability.
  2. Foster enhanced stakeholder collaboration to achieve whole sector solutions.
  3. Advocate for Ontario's interests in regulated marketing nationally.

Strategy:

  • Administer the FPMA and MA, and the associated legislative and regulatory framework for the regulated marketing system in Ontario.
  • Develop and implement regulated marketing policy in collaboration with the Ontario Ministry of Agriculture, Food & Rural Affairs.
  • Oversee marketing boards to ensure that they operate within the powers and authorities delegated to them.
  • Provide leadership in the form of advice, facilitation, direction and education to Ontario's marketing boards and section 12 representative associations.

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, it ensures that individual commodity systems operate in an effective and responsible manner. This is done with consideration of the entire agri-food value chain, while at the same time maintaining the public policy goals of the legislation.

Commission members are appointed by the Lieutenant Governor in Council and are supported by OMAFRA staff. The members and staff participate in stakeholder meetings, represent Ontario's interests at the national level, foster collaboration/communication among the agri-food value chain, identify opportunities for Ontario agriculture improvement of the regulatory framework to adapt to emerging market trends and to position regulated sectors to look ahead and prepare for change.

At the strategic level, the commission strongly encourages all those within the value chain to work together to achieve Ontario's objectives. The commission advocates for Ontario's interests at both interprovincial and national forums.

The initiatives described below reflect the commission's ongoing commitment to its regulatory responsibilities under the legislation - its supervisory role with marketing boards and representative associations, fostering collaboration/communication among the agri-food value chain, improvement of the regulatory framework to adapt to emerging market trends and to position regulated sectors to look ahead and to prepare for change by assisting in identifying opportunities for Ontario agriculture.

Strategic Objectives

1. Oversee and facilitate marketing board and representative association effectiveness and accountability.

The commission supervises Ontario's marketing boards and section 12 representative associations to ensure that they:

  • Operate within the powers and authorities delegated to them
  • Perform effectively
  • Adhere to strong governance practices
  • Are accountable to their members
  • Are financially stable
  • Respond to market adjustments
  • Develop strong relationships along the value chain
  • Maintain open communication
  • Develop forward thinking strategic plans

The commission also develops and implements regulations within the regulated marketing system in collaboration with the OMAFRA, and provides leadership, educational programs, direction and advice to Ontario's marketing boards and section 12 representative associations.

Boards and representative associations are currently dealing with several challenges, including:

  • Changing consumer demands
  • Market segmentation
  • Product differentiation
  • Consolidation of food processors and retailers
  • Increased variance among producers' marketing needs
  • Trade
  • Impacts from a changing world economy

As such, the commission is working closely with industry to ensure that the regulatory framework evolves to reflect current market realities.

2. Foster enhanced stakeholder collaboration to achieve whole sector solutions.

Building stronger relationships along the value chain helps create trust, communication and cooperation, which in turn leads to innovation, collaborative research and increased business opportunities.

The commission encourages the use of Industry Advisory Committees (IAC), particularly in regulated sectors where producer, processor, retailer, and/or buyer relationships can become strained. IACs facilitate a collaborative approach to identifying and managing issues facing a sector. The process strengthens relationships and helps the industry better manage industry challenges.

The commission spends considerable time facilitating industry discussions to ensure other stakeholders along the value chain have an opportunity to bring their views and ideas forward for consideration. When necessary, the commission can engage a mediator or facilitate discussions itself to resolve disagreements amongst industry stakeholders.

3. Advocate for Ontario's interests in regulated marketing nationally.

As a signatory to federal/provincial/territorial agreements on supply managed commodities, the commission's goal is to ensure that national systems are responsive to changing markets and that they continue to serve Ontario's economic interests. Ontario's regulated marketing systems need to meet the needs of the entire sector. The commission encourages the fostering of relationships among producers, food processors, consumers, retailers and other sector stakeholders and encourages them to work together in an open and transparent fashion to achieve Ontario's objectives.

Environmental Scan

The issues and opportunities outlined below currently impact Ontario's regulated marketing sector.

External Factors

International/Interprovincial Trade

Ontario relies heavily on trade, with agri-food exports reaching $14.9 billion in 2017.

Canada United States Mexico Trade Agreement

The United States is Ontario's number one trading partner, with Ontario-U.S. bilateral agri-food trade totaling $28.8 billion in 2017.

On September 30, 2018, Canada, the U.S. and Mexico announced the completion of negotiations toward a new Canada-United States-Mexico Agreement (CUSMA). The proposed CUSMA will preserve existing duty-free trade between the three countries and will maintain well- established supply chains and relationships.

Under the agreement, Canada was able to secure the following outcomes for agriculture:

  • New market access for refined sugar and sugar-containing products, as well as certain dairy products (including cheese, cream, milk beverages, butter);
  • Tariff elimination for peanut butter, whey and margarine, including liberalized rules of origin for margarine;
  • Alignment of the definition of "specially defined mixtures" with Canada's definition in its World Trade Organization schedule to ensure tariff rate quotas are not circumvented. This removes uncertainty and unpredictability for the chicken and turkey sectors;
  • A consultation mechanism for parties to address domestic support that may be trade distorting;
  • A modernized Committee on Agricultural Trade which will provide a forum for parties to address issues and trade barriers;
  • Maintenance of commitments that reflect the unique character of the sale of wine and spirits in Canada; and
  • Progress that builds on commitments from the previous North American Free Trade Agreement's chapter on sanitary and phytosanitary (SPS) measures, while maintaining a CUSMA party's ability to protect human, animal and plant life or health.

The agriculture Chapter also includes obligations for agricultural biotechnology, including provisions that recognize and support the fundamental principles that encourage innovation and facilitate trade in products of agricultural biotechnology.

As part of the overall agreement, Canada has agreed to:

  • Provide new market access to the U.S. for dairy, poultry, and egg products;
  • Eliminate tariffs for whey powder and margarine;
  • Ensure the elimination of current milk Classes 6 and 7; component prices for these products will be calculated based on an agreed U.S. reference price;
  • Limit export for skim milk powder, milk protein concentrate, and infant formula with surcharges above the export thresholds.
  • Allow U.S. grown wheat varieties registered in Canada to receive an official Canadian grain grade.
Canada-European Union Comprehensive Economic and Trade Agreement

The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) has been in force provisionally since September 21, 2017.

Ninety-four per cent of agricultural tariffs under the agreement have been eliminated between Canada and the EU through the CETA.

Ontario-EU two-way agri-food trade reached more than $3.3 billion

Canada-United Kingdom Trade Relationship Post-Brexit

On March 29, 2017, the United Kingdom of Great Britain and Northern Ireland (UK) invoked Article 50 of the Lisbon Treaty and notified the European Council of its intention to withdraw from the EU on March 30, 2019. EU leaders have now backed a six-month extension until October 31, 2019. However, the UK may leave before this date if the withdrawal agreement is ratified by the UK and the EU before then. This withdrawal from the EU is also known as "Brexit".

At the time of the UK's departure from the EU, the UK will cease to be considered a party to the EU treaties and, thus, will lose those treaties' benefits and obligations. This withdrawal will affect all treaties between Canada and the EU, including CETA.

Canada is committed to maintaining predictable and stable trade relations with the UK following its withdrawal from the EU. Canada is closely following ongoing negotiations between the UK and the EU.

There may be a time-limited transition period following Brexit during which the UK would, in some respects, continue to be treated as a Member State of the EU. Depending on the outcome of this possible situation, Canada would agree to have the UK remain a party to CETA and all other Canada-EU agreements.

Should the EU and the UK not reach an agreement on their future relationship in time for Brexit, the Government of Canada is considering a transitional agreement with the UK that would allow a seamless transition of CETA, while respecting the UK's lack of jurisdiction to negotiate free trade agreements while it is a Member State of the EU Post-Brexit. Once the UK has the legal competence to negotiate trade agreements, Canada will work with the UK to ensure we take full advantage of our particular bilateral trade relationship.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force on December 30, 2018, having been ratified by Canada, Japan, Australia, New Zealand, Mexico and Singapore.

The CPTPP has formed one of the largest trading areas in the world, accounting for nearly 13.5 per cent of global GDP.

As a group, the CPTPP member countries are Canada's third-largest trading partner, with bilateral foreign direct investment amounting to $122.2 billion in 2016.

Under CPTPP, more than three quarters of Canada's agriculture and agri-food products benefit from duty-free access. Some sectors, including dairy, poultry and eggs, are concerned that the tariff-rate quotas may negatively affect them.

Potential International Agreements

There are opportunities for additional increased international trade through potential trade agreements and alliances with China, Mercosur (a South American trade bloc formed by Argentina, Brazil, Paraguay and Uruguay), the Pacific Alliance (a Latin American trade bloc formed by Chile, Colombia, Mexico and Peru), the Association of Southeast Asian Nations (Cambodia, Brunei, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam).

Canadian Free Trade Agreement

The Canadian Free Trade Agreement has been in effect since July 1, 2017. CFTA establishes a regulatory cooperation process to help address regulatory barriers to interprovincial trade.

World Trade Organization Challenge

In January 2018, Australia initiated a World Trade Organization (WTO) trade challenge against Canada on how wine is sold in Ontario, British Columbia, Quebec and Nova Scotia.

The dispute is in regard to the sale of wine in grocery stores, including shelf space requirements; and preferential tax rates for domestic wines compared to imports at provincial wine retail stores and wine boutiques (off-site winery retail stores that have moved inside of grocery stores).

On September 26, 2018, a dispute settlement panel was established. The U.S., New Zealand, Russia, Korea, India, South Africa, Chinese Taipei, China, Chile, EU, Argentina and Mexico all reserved their rights as interested third parties in the dispute.

OMAFRA is providing input into the federal government's negotiating position/concessions regarding potential impacts to Ontario's grape growing and winery sectors, as well as funding program considerations.

Economic

Economic Growth

In response to the growing strength of Canada's economy, in 2017 the Bank of Canada raised interest rates for the first time in almost seven years.

Minimum Wage

The Making Ontario Open for Business Act, 2018 (Bill 47) came into force on January 1, 2019.

The bill repeals amendments made under Bill 148, the Fair Workplaces, Better Jobs Act, 2018, which caused employers, especially the agricultural sector, concern about new scheduling rules, equal pay despite employment status, a new public holiday pay formula, and a minimum wage increase to $15 per hour. The minimum wage will remain at $14/hour until annual increases, tied to inflation, restart in 2020.

Labour Shortages

Access to labour is a critical and urgent issue for Ontario's agri-food sector. The Canadian Agricultural Human Resource Council estimates that Canada's agri-workforce shortages are doubling every 10 years, which cost the sector $1.5 billion in lost sales in 2014. The Council projects Ontario's labour shortage to grow to 46,000 vacancies by 2025. Ontario's agri-food sector labour issues include:

  1. accessing labour due to a lack of overall availability; and
  2. the availability of appropriately skilled labour.

These issues can be addressed through advocacy with relevant federal and provincial organizations; utilization of immigration programs such as the Temporary Foreign Workers Program, the Seasonal Agricultural Workers Program and the Ontario Immigrant Nominee Program; identification of relevant skills development programs; and supporting industry interest and effort in analyzing the potential impact of automation in the sector.

Environmental/Biological

Climate Change

Climate change continues to be a major concern for consumers, industry and the federal government.

Food Safety

More and more countries are requiring stringent record keeping and traceability control systems to enhance food safety. Canada has an opportunity to increase sales domestically and internationally by branding itself as a supplier of safe and high-quality food. Ontario is focused on reducing prescriptive regulations and administrative burden.

Animal Health and Welfare

Growing consumer focus on animal health and welfare is impacting industry practices, such as livestock housing and transportation.

Foreign and domestic disease and pests are also a constant concern for producers, as outbreaks lead to trade restrictions, border closures, increased biosecurity measures and economic losses. Ontario's ability to mitigate disease outbreaks through its high standard biosecurity measures has made it an optimal location to set up poultry and livestock operations.

Pharmaceuticals used to treat, control or prevent disease, or to improve production or growth, have led to an increase in antimicrobial resistance, which has been identified as posing a significant health risk to both animals and humans. Canada is addressing this issue by implementing legislation that will reduce antibiotic use by requiring producers to obtain a veterinarian prescription for any antimicrobial drugs.

Market Changes

Demographic trends such as population growth, immigration, an aging population, income, lifestyle and ethno-cultural diversity are shaping consumer trends and demands.

Consumers are increasingly looking for convenient, high quality, healthy, safe, diverse, locally grown and made food that is produced with a low environmental impact.

Currently, Ontario is struggling to gain market share in some sectors, which represents missed opportunities for both primary production and processing. Being able to meet changing consumer needs will be key to ensuring growth and success.

Internal Factors

Although the commission is an arms-length, non-board governed agency, it is accountable to the Ontario government through the Minister of Agriculture, Food and Rural Affairs and is supported by OMAFRA for its budget, staff, legal counsel and other services.

For the commission to operate efficiently under the authorities granted to it, two-way communication with OMAFRA is crucial.

The commission is governed by the Agencies and Appointments Directive (AAD) and related government directives.

The Secretariat administrative workload may impact the ability of the Secretariat to develop proactive strategic policy initiatives.

Mitigating Challenges and Risks

The commission needs to work closely with its boards and representative associations to effectively prepare for and adapt to issues and market and environmental changes. Through ongoing risk identification, assessment and planning, the commission, in consultation with its stakeholders and OMAFRA, will be able to develop mitigation strategies to help protect the sector.

Secretariat staff provide expert policy analysis and recommendations to the commission on regulated marketing issues to assist them in making well-informed decisions.

Commission members are actively engaged in helping mitigate risk by attending board and representative association meetings and Industry Advisory Committees. Members, most of whom are directly involved in the agri-food industry themselves, bring a wealth of experience to the table on issues facing the industry.

The commission will continue to be engaged in, and a signatory to, federal/provincial/territorial agreements on supply managed commodities to ensure that national systems continue to serve Ontario's economic interests.

The commission holds an annual governance training session, which is open to all board and representative association directors and senior staff. The session is designed to educate directors and staff on how to operate an effective board and to respond appropriately to opportunities, challenges and risks in their respective sectors.

External Risks

International/Interprovincial Trade

Risk: Changes to international trade agreements could lead to additional trade considerations, as well as increased national and international competition.

Mitigation Strategies:

  • Strong relationships will be key to increase cooperation and collaboration along the value chain
  • The commission will work with industry to identify and introduce flexibility into marketing systems by providing a fair and balanced regulatory approach
  • Boards and representative associations will need to look at new products, technologies and markets to compete nationally and internationally.

Economic

Risk: The current global and national economic climate poses risks to Ontario's agri-food sector in terms of sustainability, competitiveness and innovation.

Mitigation Strategies:

  • The commission will work with Ontario's boards and representative associations to ensure regulated marketing systems are flexible enough to accommodate trends such as buying local, organic production, niche markets and new market entrants.
  • The commission will challenge the sector to find pricing mechanisms that reward value-added activities as well as encourage an operating environment for producers that allows for innovation, differentiation and growth.

Risk: Ontario's lack of market share in some supply managed sectors has an economic impact across the value chain within the province.

Mitigation Strategy:

  • The commission will work with the supply managed sectors to develop plans to maintain and/or increase Ontario's share of national allocations and advance Ontario's interests.

Environmental/Biological

Risk: New plant and animal diseases could negatively affect production, sustainability of the effected commodity, trade, consumer health and the economy.

Mitigation Strategy:

  • The commission will encourage boards to work together to share ideas and develop procedures on how to mitigate environmental or biological risks.

Market Changes

Risk: Changing consumer demands in terms of local, organic, ethno-culturally diverse products and production is a risk to those sectors that do not diversify, innovate or adapt their products.

Mitigation Strategies:

  • The commission will encourage its boards and representative associations to work with producers and food processors on product differentiation, innovation and stakeholder collaboration to help adapt to changing consumer demands for more nutritional, locally-grown, organic and/or ethno-culturally diverse food.

Internal Factors

Administrative

Risk: Commission Secretariat administrative workload may impact the ability of the Secretariat to develop proactive strategic policy initiatives in relation to regulated marketing in Ontario.

Mitigation Strategy:

  • The Secretariat will streamline its processes and incorporate an operational plan within the commission's strategic plan to better serve the needs of the commission and regulated marketing in Ontario.

Commission-OMAFRA Alignment

Risk: The commission and OMAFRA each have their own mandates, which may impact regulated marketing; creating the potential for misalignment.

Mitigation Strategies:

  • The Chair will communicate directly with the Minister and Deputy Minister to ensure they are advised of all activities and issues that concern the regulated marketing sector.
  • The Chair will consult with the Minister, as appropriate, on broad government policy initiatives or legislation being considered by the government that may impact the commission's mandate and the regulated marketing sector.
  • The Chair will consult with the Minister on public communications strategies and publications.
  • The Chair will keep the Minister informed of the results of stakeholder and other public consultations and discussions related to regulated marketing.
  • The Director of the Secretariat and Secretariat staff will maintain open communication with OMAFRA staff.

Resources

Risk: Commission's dependency on OMAFRA provided resources impact the timeliness of some commission initiatives.

Mitigation Strategy:

  • The commission will work within the limits of the resources provided but will take proactive steps to streamline the processes which it is able to influence.

2019 - 2022 Implementation Plan

1. Oversee and Facilitate Marketing Board and Representative Association Effectiveness and Accountability.

The regulated marketing system needs to adapt to meet the changing needs of stakeholders to maintain orderly marketing or to adjust to changes in domestic and foreign marketplaces. The changes can be as simple as refinements to operations, or as significant as the termination of marketing authorities or plans.

The commission strives to ensure that the regulated system remains dynamic; marketing boards operate within the powers and authorities given to them; the lines of accountability are maintained; and public interest in the system is well served.

The commission will continue to work with its boards and representative associations to identify and implement effective frameworks/practices that foster good governance and ethical conduct. These may include regulatory amendments, training opportunities, guidelines and policy documents.

The agricultural industry has the capacity to grow and the commission has a role in facilitating this goal. The commission will work to address any potential impediments to growth as it relates to regulations.

Towards achieving strategic objective #1, the commission will:

Strategic Objective #1. Oversee and facilitate marketing board and representative association effectiveness and accountability

Strategies Implementation/Actions Measures of Success/Performance Target
Provide leadership to regulated marketing in Ontario
  • Ensure commission operates in an open and transparent fashion
  • Provide advice, facilitation and direction to Ontario's marketing boards and representative associations
  • Clearly communicate the commission's expectations to boards about the authorities granted to them
  • Investigate and mediate disputes, including providing for facilitation/ negotiation/ arbitration and conduct hearings if necessary
  • Bring negotiated agreements between producers and processors, and arbitrated awards, into force
  • Administer the licensing program for processors of grapes, vegetables, potatoes, asparagus, and tender fruit, and for dealers of seed corn
  • Transparency is demonstrated by publishing the commission's governance documents online and posting proposed regulation amendments on the Regulatory Registry for public comment
  • Advice and/or direction is provided to the boards and representative associations as required
  • Boards understand the commission's expectations including the authorities and powers granted to them
  • Disputes are investigated, and when necessary facilitation, negotiation or arbitration is provided
  • Negotiated agreements and awards between the boards and processors are brought into force within three months of receipt of the signed agreement
  • Processor and dealer licences are considered by the commission within three months of receipt of a completed application
Monitor effectiveness of boards and assess their performance
  • Enhance the commission's oversight and monitoring practices of marketing boards and representative associations
  • Formal review of each board (board representatives meet with the commission) at regular intervals
  • Complete a board analysis annually, covering:
    • Board governance
    • Finances
    • Market overview
    • Sector analysis
    • Value proposition to members
    • Opportunities for sector growth
    • Industry relations
    • Key activities (research, promotion and marketing etc.)
    • Providing value to the province of Ontario
  • Engage board and representative association Chairs to foster open communication
  • A more robust assurance framework will be developed and implemented to ensure boards are operating appropriately and within their delegated authorities
  • A more rigorous and standardized board review process will be developed
  • A minimum of eight boards / representative associations appear before the commission for a formal review annually
  • Complete assessment of each board is conducted by Secretariat staff annually, in accordance with the enhanced assurance framework
  • The commission Chair meets regularly with board and representative association Chairs to further align industry and government priorities
Ensure boards demonstrate sound financial management
  • Assess the annual financial statements of all boards and representative associations, including reviewing financial reserve policies, trends and financial ratios
  • Ensure that boards and representative associations are financially sound, sustainable and have sufficient financial reserves to address potential sector issues
Encourage boards to engage in long term planning
  • Encourage boards to have a strategic plan in place to provide direction and context to their decision making and actions
  • Encourage boards to strive towards diversity in their membership
  • Encourage boards to develop succession plans for their organizations
  • Boards are expected to provide the commission with a copy of their strategic plan and commission direction is provided when necessary
  • Boards are encouraged to have a diverse membership as it relates to various factors, including size of operation, age, gender etc.
  • Boards are encouraged to demonstrate succession planning efforts and assistance is offered as necessary
Creation of a regulatory environment that supports the needs of the regulated boards
  • Review of board regulations to ensure authorities meet the needs of the board and/or the industry
  • Pursue regulation amendments to meet industry and market needs
  • Ensure boards are acting within the authorities granted by their regulations
  • Develop regulations to support new commodities within the regulated marketing system
  • Number of regulations reviewed to address the needs of the board and/or the industry
  • Number of regulations amended to meet industry and market needs
  • Review of board activities and ongoing initiatives to ensure they are adhering to the authorities delegated to them
  • Number of new regulations created or amended to support commodity additions to regulated marketing
Provide training to boards and section 12 representative associations
  • Deliver training on best practices, good governance, and financial management, which is designed as an introductory session for new directors
  • Evaluate commission-led training sessions for relevance and value to the participants
  • All new directors and senior staff of boards and representative associations are encouraged to participate in commission governance training
  • Participants are satisfied that the session is relevant and appropriate to their needs, as demonstrated by a minimum 80 per cent satisfaction rating on the evaluation form
Modernization of the current ethical framework for boards
  • Work with stakeholders to identify opportunities to strengthen and modernize the current ethical framework, so that it provides for a consistent, effective mechanism for:
    • Setting parameters of acceptable conduct and standing of board members; and
    • Preventing and addressing obstructive and inappropriate conduct on the part of board members
  • A consistent, provincial framework is in place to provide boards and representative associations with supports to develop/update local ethical frameworks (including policies, procedures and practices).
  • Regulatory amendments, if necessary, and non-regulatory supports, are made available to boards and representative associations.
Commission is knowledgeable about regulated marketing and factors influencing the system
  • Attract experienced, knowledgeable industry experts to join the commission
  • Demonstrate the commission's commitment to diversity
  • Ensure that commission members have the necessary skills, knowledge and expertise to make well informed decisions
  • Inform commission members of industry issues to help them understand the market context for the various commodities
  • Ensure that Secretariat staff have the necessary skills, knowledge and expertise to support the commission and the boards
  • Retain commission member and Secretariat staff expertise within the commission to continue operations during times of transition
  • The breadth of knowledge and experience of commission members
  • The diversity of the commission membership is demonstrated across various factors.
  • A commission member training plan is developed and implemented
  • Commodity information is provided to the commission members by Secretariat staff to ensure the members are well informed on issues impacting each industry
  • Commission Secretariat training plans are developed and implemented
  • A succession plan for members and staff is developed and implemented

2. Foster Enhanced Stakeholder Collaboration to Achieve Whole Sector Solutions

The commission pursues a comprehensive approach to respond to evolving market trends. Wherever possible, the commission attempts to facilitate the development of solutions with the involvement of the entire value chain. The commission fully recognizes that marketing boards (as representatives of their producers) and processors share the responsibility for achieving sector solutions through their willing participation in industry discussions. The commission seeks to achieve solutions developed by industry players but will impose solutions using the regulatory powers available where necessary.

Currently there are 21 different Industry Advisory Committees (IAC) established within marketing regulations under the FPMA (see appendix IV). IACs include representatives from the marketing board, value chain stakeholders, commission members and Secretariat staff. Although not all IACs are currently active, additional IACs are being added over time to regulations as the existence of an IAC allows sectors to have an established body in place to manage any emerging industry issues. While the individual objectives of each IAC vary, they all seek to engage the various sector players to work collaboratively for the benefit of the entire industry. For example, the Greenhouse Vegetable IAC has established an unprecedented level of collaboration among members of the greenhouse vegetable value chain, from producers through to retailers, resulting in successful marketing campaigns. Other sectors are now expanding their IAC membership in an attempt to achieve the success of the Greenhouse Vegetable IAC model.

Towards achieving strategic objective #2, the commission will:

Strategic Objective #2. Foster Enhanced Stakeholder Collaboration to Achieve Whole Sector Solutions

Strategies Actions/Implementation Measure of Success/Performance Target
Provide leadership to facilitate stakeholder collaboration
  • Provide opportunities to bring stakeholders together to achieve sector solutions
  • Utilize Industry Advisory Committee (IAC) meetings to enhance communication along the value chain, to solve industry issues and take advantage of market opportunities
  • Encourage boards to collaborate with processors and other value chain members
  • Commission provides facilitated discussions to promote collaboration among stakeholders
  • The number of active and effective IACs
  • An increase in the number of IAC meetings held annually and an expansion of IAC membership, where warranted
  • Board demonstrated consultation with relevant stakeholders to resolve issues or collaborate with other players in their value chain
Consultation with stakeholders
  • Encourage boards to conduct consultation sessions to determine stakeholder support for various initiatives
  • Demonstrate the value of stakeholder input on various initiatives
  • Demonstrate support for stakeholder consultation
  • The commission encourages boards to engage in stakeholder consultations, particularly if they are seeking commission support on an initiative
  • The commission hosts consultation sessions to gather feedback from stakeholders when necessary
  • Commission website is used as a tool to communicate to stakeholders and the public
Increase inter-board networking and relationship building
  • Encourage boards to collaborate with other boards on issues of joint concern
  • Encourage boards to look to other regulated boards for examples of best practices.
  • Encourage boards to seek opportunities for inter-board networking and relationship building
  • Demonstrated collaboration among boards on issues of joint concern
  • Boards utilize existing models for application in their own sector
  • Demonstrated engagement and collaboration with other boards
Engagement with industry
  • Regularly engage stakeholders to build relationships across the value chain and foster collaboration
  • Demonstrate industry involvement through member and/or staff attendance at annual general meetings (AGMs), district meetings board meetings and other sector events, as appropriate, creates increased awareness of industry issues
  • Invite stakeholder groups to commission meetings to provide insights into the agri-food industry and to provide the commission with a fulsome perspective on issues
  • The number of stakeholder events attended by commission members and/or Secretariat staff
  • The number of AGMs attended by commission members and/or staff
  • Stakeholder groups appear before the commission to provide insights to issues impacting their sector
Encourage industry to be proactive in developing sector solutions
  • Encourage boards and stakeholders to work collaboratively to achieve sector solutions
  • Demonstrated achievement of a sector solutions by industry

3. Advance Ontario's Interests in Regulated Marketing Nationally

The commission participates in national regulated marketing systems. It seeks to ensure that the national supply and non-supply managed sectors adapt to internal and external forces and allow for economic growth in Ontario while respecting inter-provincial and international obligations. A key to success is to encourage collaboration and cooperation along a commodity's entire value chain in Ontario and to ensure there is a unified Ontario position when working with other jurisdictions and trading partners.

Structural rigidity of the Canadian national supply management system can be a barrier to addressing needed changes for the system at the provincial level. However, the commission's objective to advance Ontario's interests in regulated marketing should help support industry by ensuring a robust supply management system both provincially and nationally.

Towards achieving strategic objective #3, the commission will:

Strategic Objective #3. Advance Ontario's Interests in Regulated Marketing Nationally

Strategies Actions/Implementation Measure of Success/Performance Target
Support Ontario's growth initiatives
  • Work with the supply managed sectors to develop strategies to maintain and/or increase Ontario's share of national allocation
  • Encourage boards to pursue growth opportunities
  • Ontario's share of national allocation of supply managed production is maintained or increased over time
  • During formal board reviews, boards report on their growth initiatives/ strategies
Promote Ontario's interests at the national level
  • Encourage industry players to establish and present a united position at national discussions
  • Support regulated marketing in Ontario by taking into consideration the needs of the value chain
  • Encourage boards to strengthen non-supply managed national organizations and ensure value for money at the national level
  • Advise and consult with national agencies on issues related to federal-provincial agreements to make them more flexible and market responsive
  • Maintain awareness of national and international trade issues impacting the supply managed commodities and advocates support of regulated marketing and supply management
  • All supply managed commodities are encouraged to develop a united position when dealing with national issues
  • Commission encourages its boards to work at the national level to address the needs of the value chain
  • Strategic alliances are built with federal/provincial/territorial counterparts to support non-supply managed organizations
  • Policy decisions are made and regulatory changes are implemented to adapt to the needs of an evolving marketplace
  • Commission is aware of national and international trade issues
Assist in the creation of marketing boards and/or Section 12 designations
  • Provide advice and assistance to producer groups that wish to create a marketing board or Section 12 representative association under the FPMA or MA
  • Conduct expression of opinion votes (EOV) to determine producer support
  • Expansion of regulated marketing to additional farm products through the creation of a new board or Section 12 representative association
  • Conduct EOV to determine producer support
Consider consumer interests
  • Consider consumer needs when making policy decisions/ regulation amendments
  • Post proposed regulation amendments posted onto the Regulatory Registry for public comment

2019-2022 Annual Agency Accountability Performance Targets

The chart below identifies the annual compliance requirements under the AAD as well as one of the commission's key agency initiatives for 2019-2022.

Goal Actions/Implementation Measure of Success/Performance Target
Compliance with the Agencies and Appointments Directive
  • Annual three-year business plan
  • Annual report
  • Ministry risk assessments
  • Business Service Emergency Plan (BSEP)
  • Accessibility for Ontarians with Disabilities Act (AODA) compliance report
  • Revise and update MOU between the Chair and the Minister
  • Submit a three-year business plan to the Minister by the deadline and post the plan on the commission's website
  • Submit an annual report to the Minister by the deadline and post the report on the commission's website
  • Submit quarterly risk assessments to the ministry by the deadlines
  • Submit an updated BSEP to the ministry by the deadline
  • File an AODA compliance report by the deadline
  • New MOU is completed by the deadline
Increase collaboration with the ministry
  • Increase collaboration between the commission and the ministry
  • Efforts are made by the commission and the ministry to work in a more collaborative fashion on overlapping issues
  • More information is shared by both organizations
Client Service
  • Response to client requests or complaints
  • Client response target is within two business days

Resources to Meet Goals and Objectives

Budget

The commission operates under a budget allocation by the Ministry of Agriculture, Food and Rural Affairs and therefore does not have its own audited financial statements. The commission's resource requirements are incorporated into the ministry's business plan.

Commission Direct Operating Expenditures 2018-19 Ministry Allocation 2019-20 Ministry Allocation
Transportation and Communications $90,000 $55,000
Services $485,000 $357,000
Supplies and Equipment $25,000 $15,000
Total $600,000 $427,000

The resources, services and support provided by the ministry have served the commission well in fulfilling its mandate. The commission continues to use its resources prudently.

Human Resources

The commission is supported by 10 full-time equivalent (FTE) Secretariat staff positions who are employees of the Ontario Public Service.

In order to fulfill its mandate, the commission currently includes six provincially-appointed individuals, including: the chair; vice chair and four members.

The Secretariat supports the commission by providing administrative support, policy analysis, information and advice on issues to enable the commission to make informed decisions. Support from OMAFRA's legal services branch is a significant resource required to achieve the commission's objectives.

Initiatives Involving Third Parties

The commission frequently collaborates with third parties, such as other provincial and national supervisory bodies, or their equivalent, on regulated marketing issues of mutual concern. The commission engages facilitators or arbitrators to resolve contentious industry issues when necessary. Third party individuals have been used to facilitate training sessions and consultations when required. However, the commission has not normally entered formal third-party initiatives with other levels of government, private businesses or with not-for-profit organizations.

Communications Plan

The commission uses a targeted and proactive communication approach with stakeholders and works to be open and transparent in all its processes. It also communicates its expectations of boards and representative associations regarding effective performance.

The commission maintains a website that provides relevant information about Ontario's regulated marketing sector. All public communications are coordinated with the Minister's Office and requires their approval. Under the requirements of the AAD, commission governance documents such as its business plan, annual report and memorandum of understanding, are publicly posted on the site. Under the Management Board of Cabinet Travel, Meal and Hospitality Directive, commission member travel, meal and hospitality expenses are also publicly posted on the site. In 2017, the commission expanded the use of the website as a communications tool and is continuing this practice.

Under the commission's media protocol, the Chair is the spokesperson for all media requests. As required under the Ontario-Quebec Trade and Cooperation Agreement, a summary of all proposed regulation amendments is posted on the provincial Regulatory Registry for a minimum of 45 days, allowing an opportunity for the public to comment.

Original signed by Jim Clark, Chair of the Ontario Farm Products Marketing Commission.

Appendix I: Glossary of Terms

Glossary of Terms

Regulated Marketing System

The Farm Products Marketing Act (FPMA) and the Milk Act (MA) are the legal foundations of the regulated marketing system in Ontario. Through these two acts, the Ontario government provides 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 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.

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.

Appendix II: Listing of Boards and Representative Associations

Marketing Boards

The Milk Act provides authority to one marketing board that regulates milk and cream.

  • Dairy Farmers of Ontario

Regulations made under The Farm Products Marketing Act underpin the other twenty-one marketing boards in Ontario as well as the three representative associations designated under Section 12 of the Act.

  • Asparagus Farmers of Ontario
  • Berry Growers of Ontario
  • Chicken 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

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

Appendix III: Industry Advisory Committees

Industry Advisory Committees for each commodity are enabled through the respective Marketing Regulation. The following committees currently exist in regulation:

  • Asparagus Industry Advisory Committee
  • Fresh Asparagus Industry Advisory Committee
  • Bean Industry Advisory Committee
  • Berry 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