Addition of Onions to R.R.O 1990, Regulation 441 (Vegetables for Processing - Plan) and under R.R.O. 1990, Regulation 440 (Vegetables for Processing - Marketing)
R.R.O 1990 Regulation 441 (Vegetables for Processing--Plan)
R.R.O 1990 Regulation 440 (Vegetables for Processing—Marketing)
Bill or Act:
Farm Products Marketing Act
Summary of Decision:
An amendment to R.R.O. 1990 Regulation 441 (Vegetables for Processing - Plan) was made by the Lieutenant-Governor-In-Council and subsequently filed with the Registrar of Regulations on June 21, 2013. The amendments came into force on July 1, 2013. A complementary amendment to R.R.O. 1990 Regulation 440 (Vegetables for Processing - Marketing) was made by the Ontario Farm Products Marketing Commission on June 19, 2013 and was filed with the Registrar of Regulations on June 21, 2013. The amendments to Regulation 440 will come into force on November 1, 2013. The effect of the two amendments is to add "Spanish-type onions used for onion rings" to the regulatory authorities of the Ontario Processing Vegetable Growers.
April 3, 2013
Summary of Proposal:
The Ontario Processing Vegetable Growers (OPVG) is a marketing board established under the Farm Products Marketing Act (FPMA). Marketing boards may be delegated a number of regulatory authorities by the Ontario Farm Products Marketing Commission ("Commission").
Under Regulation 440, the OPVG has been delegated a number of authorities with respect to 13 vegetables grown for processing.
The main regulatory authorities are the negotiation of prices, terms and conditions for the sale of the vegetables from growers to processors. The agreements between growers and processors are brought into effect by the Commission. For onions, stakeholders agree that the negotiations would occur in the late fall of each year. Disagreements arising from the negotiation process are resolved by final offer arbitration.
Producers pay a licence fee to finance OPVG activities; producers pay a fee of about 1% of the gross value of their applicable vegetable sales. These fees are collected by the processor and remitted to the OPVG.
The Commission retains the authority to licence processors. Ontario processors must be licenced to contract for vegetables and to buy vegetables. Any contravention of: negotiated contracts; the FPMA; Regulation 440; or, other regulations could, after a hearing by the Commission, be grounds for the revocation or suspension of a Commission's licence as a processor of vegetables.
In the fall of 2012, on behalf of the three known onion growers, OPVG asked the Commission to add onions sold for onion rings to its authorities. There is currently only one Ontario processor.
On February 14, 2013, the Commission agreed in principle to support OPVG's proposal and to recommend it to the Minister of Agriculture and Food, and subsequently to the Cabinet.
There are two regulations that would require amendments in order to add onions to OPVG's authorities:
- Regulation 441 (Vegetables for Processing - Plan). Amendments of this nature (i.e. adding an additional agricultural commodity to the regulatory authorities) require approval by the Lieutenant-Governor-in-Council.
- Regulation 440 (Vegetables for Processing - Marketing). This is a Commission regulation that the Commission has the authority to amend.
Ontario Farm Products Marketing Commission
1 Stone Rd. W., Guelph, ON, N1G 4Y2
Phone: 519 826-3242
Fax: 519 826-3400
July 1, 2013