Regulation - Minister

Amendments to R.R.O. 1990, Regulation 440 (Vegetables for Processing-Marketing) and R.R.O. 1990, Regulation 441 (Vegetables for Processing-Plan) under the Farm Products Marketing Act

Regulation Number(s):
R.R.O. 1990, Regulation 440
R.R.O. 1990, Regulation 441
Instrument Type:
Regulation - Minister
Bill or Act:
Farm Products Marketing Act
Summary of Decision:
The Ontario Farm Products Marketing Commission amended R.R.O. 1990, Reg. 440: Vegetables for Processing - Marketing, under the Farm Products Marketing Act.

The amendments:
- Allow tomato and carrot producers to collectively determine whether they wish to negotiate directly with a processor, or to have their agreements negotiated on their behalf by peer producers for each processor (i.e., through a negotiating agency);
- Enhance contract security for tomato and carrot producers, as these producers tend to make greater, long-term investments in their operations;
- Facilitate more effective conflict resolution for collective tomato and carrot negotiations by introducing a new mediation process that can progress to arbitration under exceptional circumstances; and
- Allow the Ontario Processing Vegetable Growers to focus on non-negotiating services that benefit its grower members (e.g., marketing, research, advocacy, etc.).
The Commission also amended R.R.O. 1990, Reg. 441: Vegetables for Processing - Plan, under the Farm Products Marketing Act.

The amendments are intended to enable broader producer participation in OPVG elections through an open, fair and transparent process, by:
- Establishing additional candidate and voter eligibility criteria.
- Establishing a process for appointing a returning officer, who will be responsible for overseeing OPVG's election process, including candidate nominations, ballot distribution, voting and ballot collection.
- Establishing rules to conduct proper candidate nominations, secure and confidential voting and ballot counting, and proper retention of election records.
- Requiring that board elections be conducted by mail and/or electronic means only.

The amendments also remove outdated statutory references and update the wording of certain provisions so that they are consistent with other Plan regulations.

The Regulations were filed with the Registrar of Regulations and are now in effect.
Further Information:
Proposal Number:
Posting Date:
April 18, 2019
Summary of Proposal:
The Ontario processing vegetable sector is a major contributor to Ontario's economy, with 16 processing facilities and 343 producers creating good jobs in Ontario communities. However, the sector has been experiencing challenges in recent years, threatening growth opportunities and putting jobs at risk.

At the direction of the Minister of Agriculture, Food and Rural Affairs, the Ontario Farm Products Marketing Commission (Commission) is proposing amendments to Regulation 440 to enable direct negotiation and contracting between tomato producers and processors. The Commission is also proposing amendments to align the Ontario Processing Vegetable Growers' (OPVG) delegated powers with direct contracting for processing tomatoes.

During the posting period, the Commission may also consider options for other processing vegetables.

OPVG will continue to have authority to license all processing vegetable producers and fix and collect licence fees to stimulate, increase and improve the marketing of processing vegetables. The Vegetables for Processing Industry Advisory Committee (IAC) will continue, and the Commission will consider establishing a separate advisory committee for processing tomatoes. The proposed amendments aim to promote processing investment, enable growers to be profitable, and result in a sector that is competitive and sustainable in the future.

As part of the Commission's commitment to enhancing board governance, amendments to Regulation 441 are being proposed to enable broader producer participation in selecting OPVG board members through an open, fair and transparent process using modern governance and election techniques.

The purpose of this posting is to provide industry participants and other interested parties with an opportunity to provide input on the proposed amendments.

The Commission intends to have the amendments finalized by early September 2019, ahead of 2020 crop negotiations.

Regulation 440 is a Commission regulation, which the Commission has the authority to amend. Amendments to Regulation 441 are made by the Commission subject to the Minister's approval.
Contact Address:
Kyle Kubatbekov
Farm Products Marketing Commission
1 Stone Rd W, Guelph, N1G 4Y2
Phone: 519-826-3437
Effective Date:
December 10, 2019