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 2020-2023 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 own members
  • Are financially stable
  • Respond to market adjustments
  • Develop strong relationships along the value chain
  • Maintain open communication
  • Develop forward thinking strategic plans  
  • Develop and execute annual operational plans to achieve objectives

The commission also develops and implements regulations within the regulated marketing system in collaboration with 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
  • Impacts from covid-19 pandemic response

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 $16.6 billion in 2019.

Canada-United States-Mexico (Trade) Agreement

The United States is Ontario’s number one trading partner, with Ontario agri-food exports to the U.S.  totaling $13.1 billion in 2019.

On July 1, 2020 a new Canada-United States-Mexico Agreement (CUSMA) came into effect. The CUSMA largely maintains reciprocal duty-free trade in agri-food with the exception of supply managed products, sugar/sugar containing products and beverage alcohol

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 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 of CUSMA 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;
  • Canada is required to meet higher levels of reporting for the U.S. into Canadian supply management pricing strategies;
  • 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 have been eliminated between Canada and the EU through the CETA.

As part of the agreement, Canada provided new market access for Cheese imports from the EU.

Ontario- agri-food exports to the EU totaled $912 million in 2019.

Canada-United Kingdom Trade Relationship Post-Brexit

The UK and EU are in a post-Brexit transition period until December 31, 2020 (unless extended) and are negotiating their future relationship including trade.

Canada-UK trade is governed by CETA until December 31, 2020 (unless extended). Canada and the UK have each stated their intent to maintain free trade.

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, and has been ratified by Canada, Japan, Australia, New Zealand, Mexico, Singapore and Vietnam.

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

As part of the agreement, Canada provided increased market access for dairy, poultry and eggs.

Under CPTPP, more than three quarters of Canada’s agriculture and agri-food products benefit from duty-free access

The US has now entered into a trade agreement with Japan with similar tariff reductions as under CPTPP.

MERCOSUR

Canada is engaged in negotiating a free trade agreement with Mercosur countries (Argentina, Brazil, Paraguay and Uruguay).  No formal positions have been put forward on agri-food products.

Mercosur is expected to seek increased Canadian market access for eggs, dairy, beef, wine, and refined sugars.

Canadian Free Trade Agreement

The Canadian Free Trade Agreement has been in effect since July 1, 2017, when it replaced the Canadian Agreement on Internal Trade which came into force in 1995.  

The CFTA established a regulatory cooperation process to help address regulatory barriers to interprovincial trade. 

World Trade Organization Wine Dispute with Australia

In 2018, Australia initiated a WTO challenge against Canada regarding Canadian measures governing the sale of wine, which discriminate against imported wine. 

On July 27, Canada and Australia announced a Mutually Agree Solution (MAS) regarding the federal, Nova Scotia and Ontario measures.  Negotiations with Quebec continue.

The MAS on Ontario measures includes:

  • Phase out of the restricted wine authorizations (as already planned).
  • Phase out of the discriminatory aspects of the basic wine tax for off-site stores (but not for on-site stores) over a three-year period.
  • Allow for more wineries to qualify as “small wineries” (increased from less than 200,000 litres to less than 375,000 litres annually) in order to qualify for the 50% shelf-space requirement for unrestricted wine authorizations and reduce the shelf-space requirement from 50% to 40% over three years.
  • Ontario will provide semi-annual transparency reports to Australia.

Economic

Economic Growth

The Canadian and US economies continue to recover following severe COVID related disruptions. Economic activity is growing in both countries while unemployment is trending down. However, neither economies have fully recovered and risks remain elevated. Monetary authorities are expected to keep interest rates at close to zero per cent and keep expanding their balance sheets alongside continued government actions to support businesses and households.

Minimum Wage

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

The bill repealed 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 October 2020.

Labour Shortages

Access to labour is a critical and urgent issue for Ontario’s agri-food sector. The Canadian Agricultural Human Resource Council, in their June 25, 2019 labour market forecast to 2029, estimates Canada’s agri-workforce shortage to double by 2029 to 123,000 from 63,000 in 2017. 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 diseases 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.  Staffing and budgetary restraints continue to impose risk on effective board oversight and policy/regulation delivery.

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. Approach to the delivery of this training will need to evolve in the future to accommodate desire for virtual and flexible learning opportunities.

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.

2020–2023 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 accountabilityfootnote 1

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

2020-2023 Annual Agency Accountability (AAD) 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 2020-2023.

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 2019-20 Ministry Allocation  2020-21 Ministry Allocation 
Transportation and Communications $55,000 $62,000
Services $357,000 $634,600
Supplies and Equipment $15,000 $6,000
Total $427,000 $702,600

*Changes in reporting: commission’s resource requirements (staffing and financials) which are absorbed by OMAFRA, have been excluded. 

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 and five members.  However, the vice-chair is currently acting as the interim chair until a new chair is appointed.  Once a new chair is appointed the commission will be comprised of seven individuals including the chair, a vice-chair and five 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’s 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-Québec 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.

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

Footnotes

  • footnote[1] Back to paragraph All measures of success and performance targets are subject to any limitations imposed upon the commission in the event of an emergency, such as the Coronavirus disease (COVID-19) outbreak.