Amendments to Turkey Levies Regulation: Ontario Regulation 68/98: LEVIES OR CHARGES - TURKEY of the Commodity Board and Marketing Agencies Act (CBMAA)
O. Reg. 68/98: LEVIES OR CHARGES - TURKEY
Regulation - LGIC
Bill or Act:
Commodity Board and Marketing Agencies Act
Summary of Decision:
The Ministry has amended Ontario Regulation 68/98 Levies or Charges - Turkey, under the Commodity Board and Marketing Agencies Act (CBMAA). The regulatory amendments:
•Align the prescribed maximum levy amount (1.6 cents/kg turkey, live weight) with the current amount collected from turkey producers to fund TFC (1.8 cents/kg turkey, live weight)
•Allow for a temporary 1.25 cent/kg turkey, live weight marketing levy on both turkey producers and processors so they may jointly fund a national marketing program. The prescribed maximum levy on producers would temporarily be raised to 3.05 cents/kg then reduced to 1.8 cents/kg January 1, 2024.
•Change "Ontario Turkey Producers' Marketing Board" to "Turkey Farmers of Ontario" as the name of the board has changed.
•Allow TFC to directly collect the levies or continue to use TFO as its agent.
The regulation was filed with the Registrar of Regulations and went into effect Dec 1, 2020.
Analysis of Regulatory Impact:
There will be no administrative expense associated with implementing this change for affected stakeholders. Procedures for collecting levies to fund the TFC and TFO are already in place. There is no cost to government.
Benefits of the marketing program are expected to be increased turkey sales. Increased domestic consumption is the key to the sustaining Canada's turkey sector and accommodating increased imports arising from Canada's international trade obligations. The overall per-capita consumption (PCC) for turkey was 4.2 kg per capita in 2018. The industry hopes to increase PPC to 5.0 kg by 2023 (19%) through the national marketing initiative.
The cost to Ontario federally licensed turkey processors of the proposed marketing levy on intraprovincial turkey sales combined with the federal levy on interprovincial and export sales is expected to be $1,152,814 per year or $5,764,070 over the course of the five-year promotion.
Turkey producers will not incur additional costs for the promotion program as TFO will reduce its marketing activities so as not to overlap with the federal initiative. Ontario turkey producers have been paying the slightly higher administrative levy to fund TFC operations since 2016. The agency inadvertently increased the levy beyond the regulated maximum at that time. Ontario producers pay the lowest combined provincial and federal fees in Canada.
March 5, 2020
Summary of Proposal:
Ontario Regulation 68/98 Levies or Charges - Turkey, under the CBMAA, prescribes the maximum levy amount that can be collected by the Canadian Turkey Marketing Agency, commonly called Turkey Farmers of Canada (TFC) on turkey marketed intra-provincially.
On November 28-29, 2018 TFC approved a proposal for a national turkey marketing initiative to be funded through levies on producers and processors for five years - 1.25 cents/kg. The federal government has passed a levy order to allow the TFC to collect these funds on turkey marketed inter-provincially and exported. The proposed amendment would allow the funds to be collected on producers and federally-licensed processors in Ontario.
A further amendment would increase the maximum producer levy that funds TFC operations from 1.6 cents/kg to 1.8 cents/kg. This was last increased in 2003; the proposed increase is less than half the rate of inflation.
Finally, the regulation will be updated to update the name of Turkey Farmers of Ontario (TFO).
Turkey producers and federally-licensed processors in Ontario have been consulted and are expected to support the proposal. There is industry consensus that additional marketing is required as turkey sales have been flat and as imports are expected to increase.
Economic Development Policy Branch
1 Stone Road West
Guelph, ON N1G 4Y2
December 1, 2020