Vegetable Processing Industry - Directive Updates

This page was published under a previous government and is available for archival and research purposes.

The Commission is continuing its work with the processing vegetable sector to help maximize opportunities for growth, innovation and sustainable change to help develop positive sector renewal for the long term.

On August 17, 2016, Jeff Leal, Minister of Agriculture, Food and Rural Affairs directed the Commission to develop an engagement plan to consult with interested processing vegetable stakeholders, including producers and processors, around any proposed amendments to the regulatory framework for the industry (Regulation 440).

The work that has been done, and continues to be done, ensures that we support stakeholder needs and their long term economic viability, while maintaining regulated marketing in Ontario.

Term Contract Amendments to Reg. 440

March 29, 2018 - An amendment has been made to a term contract clause under R.R.O. 1990, Reg. 440: Processing Vegetables - Marketing.

The amendment extends the notice period for termination without cause to no less than one year.

Proposed Term Contract Amendments to Reg. 440

February 8, 2018

The Ontario Farm Products Marketing Commission is proposing an amendment to the term contract clause under R.R.O. 1990, Regulation 440: Vegetables for Processing - Marketing. Details of the proposed amendment proposed amendment will be posted on the Service Ontario Regulatory Registry until March 26, 2018.

Final Filed Reg. 440 Amendments

Amendments to R.R.O. 1990, Regulation 440 (Vegetables for Processing - Marketing) were filed with the Registrar of Regulations on December 21, 2017.

The amendments are intended to help promote growth, innovation and job creation in the processing vegetable industry by creating opportunities for growers and processors to work together for the benefit of the entire value chain.

Statement from the OFPMC Chair, Jim Clark

December 21, 2017

"On August 17, 2016, the Minister of Agriculture, Food and Rural Affairs directed the Commission to consult with stakeholders around potential amendments to Regulation 440 and that any proposed changes be evidenced based supported by an independent economic analysis of the processing vegetable industry.

The amendments have been finalized following the Commission's work to meet the directive, and take into consideration the feedback received through the registry posting, broad stakeholder consultations, an informal industry advisory committee, as well as information collected through the economic analysis.

The amendments to Regulation 440 are intended to:

Encourage proactive communication and collaboration among value chain partners through an Industry Advisory Committee
Support regulated marketing by ensuring that the Ontario Processing Vegetable Growers continue to be involved in establishing the way minimum prices are negotiated for crops where there are numerous processors, while providing all processors and their growers the opportunity to develop customized agreements to meet specific needs
Encourage productive discussions that lead to agreements that meet the needs of processors and their growers
Establish protocols to help prevent future negotiation impasses by allowing either the processor or growers to initiate conciliation and requiring that negotiating agency members meet with growers prior to deciding to proceed to arbitration

The Commission will monitor the implementation of these amendments to ensure that they are supporting the industry as intended.

The decisions that the Commission has made, and the work that we continue to do, will help support stakeholder needs and their long term economic viability, while maintaining regulated marketing in Ontario.

The health and vitality of the processing vegetable sector are critical to not onlythe province's economy, but to the communities and livelihoods of thousands of Ontarians.

I would like to thank everyone who has provided their input and support over the past year. The Commission truly believes that by strengthening relationships across the value chain, we can help rebuild this industry and set it up for a successful future."

- Jim Clark, Chair, OFPMC

Statement from Minister of Agriculture, Food and Rural Affairs

November 2017 Proposed Reg. 440 Amendment Stakeholder Consultations

On November 3rd and November 23rd, the Commission held consultations, facilitated by Meyers Norris Penny (MNP), with stakeholders to discuss proposed amendments to Regulation 440.

Consultation Report Summary

August 2017 Broad Sector Consultations

During the week of August 14, 2017, the Commission held four consultation sessions, facilitated by Meyers Norris Penny (MNP), to gather input and feedback on what changes are required to help the processing vegetable industry become more competitive and prosperous.

Three sessions (August 14, 15 and 16) were held for processing vegetable stakeholders and one session (August 18) was held for those not directly involved in the industry.

Consultation Report Summary

Vegetable Processing Sector Economic Analysis

In response to the minister's directive, a detailed economic analysis of industry competitiveness and opportunities for growth has been developed by Al Mussel and Kevin Grier of Agri-Food Economic Systems.

To complete this work, Mr. Mussel and Mr. Grier reached out to growers, processors and other sector stakeholders to gather information and data.

February 2017 Processing Vegetable Industry Consultations

An open consultation meeting was held with all interested vegetable stakeholders on Thursday, February 16, 2017 in Chatham. During the meeting, stakeholders discussed opportunities for collaboration within the industry, ways to improve relationships, as well as a potential pilot project that would feature some direct contracting capabilities for the 2017 tomato crop. February 16, 2017 Consultation Report

A separate workshop was held with only tomato growers and processors on February 23, 2017 in Chatham as an opportunity to discuss potential solutions to help resolve issues around Regulation 440. February 23, 2017 Consultation Report

2017 Crop Negotiations

2017 negotiation committees included growers who had participated in OPVG negotiations previously, as well as growers who were new to the process.

The new negotiating committee setup allowed processors to negotiate with growers who would be contracting with them, as well as growers with negotiating experience to participate and be heard.