Proposal to amend R.R.O. 1990, Regulation 440 (Vegetables for Processing – Marketing) regarding “green shippers”.
R.R.O. 1990, Regulation 440 (Vegetables for Processing – Marketing)
Regulation - Other
Bill or Act:
Farm Products Marketing Act
Summary of Decision:
Ontario Regulation 424/11 was filed with the Registrar of Regulation on August 31, 2011 amending R.R.O. 440 (Vegetable for Processing - Marketing). The amended regulation requires green shippers of peppers and cucumbers to take part in negotiations with OPVG regarding annual agreements on matters, such as minimum prices of vegetables and terms and conditions related to the marketing and producing of vegetables; and, allows the OPVG to require financial security, proof of financial security or performance bonds from green shippers.
November 12, 2010
Summary of Proposal:
The Ontario Processing Vegetable Growers (OPVG) is a “local board” recognized by the Commission under the authority of the Farm Products Marketing Act. As its name implies, the OPVG represents Ontario farmers who produce vegetables for processing. The Commission has delegated certain powers to the OPVG, including the authority to negotiate annually with vegetable processors to establish the prices that producers will receive for over a dozen vegetables produced in Ontario and used for processing. These vegetables include field cucumbers and peppers. The OPVG does not have any authority over cucumbers and peppers produced in greenhouses.
Typically the Commission transfers the power to require financial security, proof of financial responsibility, or performance bonds to local boards - such as the OPVG - for the businesses that the local board licences.
“Green shippers” are a relatively new entrant into the processing vegetable industry. A green shipper does not process raw products; instead, they will consolidate large quantities of unprocessed vegetables from a number of Ontario farmers and then resell these shipments to licensed processors. Unlike processors, who are licensed by the Commission, green shippers are licenced by the OPVG.
If approved, the proposed regulatory amendments would:
1. allow green shippers of peppers and cucumbers to formally take part in pricing negotiations with OPVG and vegetable processors;
2. allow the OPVG to require financial security, proof of financial responsibility or performance bonds from green shippers.
The proposed amendments would also adjust the deadline dates for the formation of negotiating agencies for cucumbers.
The Commission supports the request from the OPVG, processors and green shippers for these regulatory amendments to this Commission regulation.
Ontario Farm Products Marketing Commission
Address: 5th Floor, 1 Stone Rd. W., Guelph
Fax: 519-826 3400
August 31, 2011