ARCHIVED — Vol. 147, No. 17 — April 27, 2013

New Brunswick Blueberry Order

Statutory authority

Agricultural Products Marketing Act

Sponsoring agency

Farm Products Council of Canada

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the orders.)

Issue and objectives

The Agricultural Products Marketing Act (APMA), which was enacted in 1949, facilitates interprovincial and export trade by authorizing provincial commodity boards (see footnote 1) to regulate the marketing (see footnote 2) of commodities in interprovincial and export trade markets to the same extent that they regulate marketing in intraprovincial trade (e.g. the collection of levies and/or any other marketing activity for which the commodity board has been delegated the powers by their respective provincial government).

The proposed orders are needed to facilitate interprovincial and export trade, by extending the same powers that the provincial marketing boards currently exercise in intraprovincial trade. Currently, provincial commodity boards that have requested a delegation order cannot benefit from the delegated authority that facilitates interprovincial and export trade.

The granting of such delegation orders under the APMA would allow the provincial commodity boards to apply the provisions set out in their respective provincial marketing scheme in interprovincial and export trade markets. Each proposed delegation order would also provide greater funding to commodity boards by allowing the collection of levies in interprovincial and export trade, thus allowing the commodity boards to broaden the collective services, which would include

  • national and international marketing promotion of their products;
  • broadening research capacities (e.g. pest and disease control); and
  • research to promote the health benefits of their commodity product.

Furthermore, it is anticipated that the revenue of the commodity boards would increase as a result of being able to collect levies on products sold on the interprovincial and export trade market.

The objectives of this proposed regulatory action are to

  • strengthen and expand the commodity boards’ authority (e.g. formalizing the requirement that producers follow the prescribed requirements currently set out in their existing provincial marketing plan) that would regulate the interprovincial and export trade of their commodity; and
  • allow for the collection of levies for interprovincial and export trade to the same extent as those collected for intraprovincial trade.

Producers would be required to comply with the provisions as set out in their existing provincial marketing plan for all transactions in intraprovincial trade (e.g. all persons engaged in the production of commodities would be required to register with a commodity board, to pay registration fees and charges for services rendered by a commodity board, to pay a levy, and to pay penalties). In turn, the provisions set out in their provincial marketing plan could apply to transactions in interprovincial and export trade.

Description and rationale

The proposed orders would

  • permit designated commodity boards to regulate the marketing of agricultural products under their responsibility in interprovincial and export trade to the same extent that they regulate marketing in intraprovincial trade;
  • permit designated commodity boards to impose and collect levies on products moving in interprovincial and export trade at the same level as levies imposed on intraprovincial trade;
  • result in an improved provincial collective marketing scheme in interprovincial and export trade markets for all producers, particularly for those who mostly sell their commodity products outside the province;
  • not be granted to commodity boards if they did not have some power to regulate already granted to them by their provincial government as stated in subsection 2(1) of the Agricultural Products Marketing Act; and
  • not impact the national marketing approach of commodities as all levies collected, whether for intraprovincial or for interprovincial and export trade, would remain the same and would be charged to the producers.

The proposed orders would ensure the fair and equitable collection of funds for the interprovincial and export trade portion of the commodity boards’ business. The proposed Order would apply to the designated product(s) moving in interprovincial and export trade.

It is important to note that this proposal would not create any new powers for commodity boards beyond providing them with the powers in interprovincial and export trade that they currently possess in intraprovincial trade. Federal delegation orders would not be granted to commodity boards if they did not already have some power to regulate already granted to them by their provincial government as stated in subsection 2(1) of the Agricultural Products Marketing Act.

Currently, 82 delegation orders have been delegated to provincial commodity boards and all operate under a provincial marketing plan. This regulatory proposal would encourage interprovincial and export trade, by extending the existing powers that provincial marketing boards currently exercise within their respective province.

Consultation

The commodity boards have received 100% of the support of producers during annual meetings held in their respective provinces. Provincial supervisory boards and provincial departments of Agriculture were also consulted and fully support this initiative. This regulatory proposal would not alter the current regulatory approval process for putting in place a delegation Order or making any amendments thereto.

This regulatory proposal is not controversial in nature. No groups, organizations or individuals have opposed any new orders made pursuant to the APMA in the past. In the last six years, consultations regarding the APMA have also proven to be very positive.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to this proposal, as there are no costs to small business.

Implementation, enforcement and service standards

The commodity boards that have requested a delegation Order are responsible for the administration of the proposed Order; therefore, they must comply with the requirements of the Act, subsection 2(1) which states the following: “The Governor in Council may, by order, grant authority to any board or agency authorized under the law of any province to exercise powers of regulation in relation to the marketing of any agricultural product locally within the province, to regulate the marketing of that agricultural product in interprovincial and export trade and for those purposes to exercise all or any powers like the powers exercisable by the board or agency in relation to the marketing of that agricultural product locally within the province.”

Commodity boards set the levy amounts for the upcoming year and approve any changes to their provincial regulations during their annual meetings. Amendments are voted on by producers and are implemented by the commodity boards for that year. The information regarding these changes is then disseminated in various ways to ensure compliance information is available with such orders (e.g. publication in provincial gazette and/or approval of orders by a supervisory board and/or publication of information in newsletters and/or on their Web sites).

Primary contact

Laurent Pellerin
Chairman
Farm Products Council of Canada
Telephone: 613-759-1560

Secondary contact

Marc Chamaillard
Director
Corporate and Regulatory Affairs
Farm Products Council of Canada
Telephone: 613-759-1706

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to section 2 (see footnote a) of the Agricultural Products Marketing Act (see footnote b), proposes to make the annexed New Brunswick Blueberry Order.

Interested persons may make representations concerning the proposed Order within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice, and be addressed to Pierre Bigras, Manager-Regulatory Affairs, Farm Products Council of Canada, Central Experimental Farm, Building 59, 960 Carling Avenue, Ottawa, Ontario K1A 0C6 (tel.: 613-759-1555; fax: 613-759-1566; email: pierre.bigras@agr.gc.ca).

Ottawa, April 18, 2013

JURICA ČAPKUN
Assistant Clerk of the Privy Council

NEW BRUNSWICK BLUEBERRY ORDER

INTERPRETATION

1. The following definitions apply in this Order.

  • “Act” means the Natural Products Act, S.N.B. 1999, c. N-1.2. (Loi)
  • “blueberries” means blueberries that are produced in New Brunswick. (bleuets)
  • “Commodity Board” means Bleuets NB Blueberries constituted in accordance with the Act. (Office)
  • “Supervisory Board” means the New Brunswick Farm Products Commission continued by the Act. (Organisme de surveillance)

INTERPROVINCIAL AND EXPORT TRADE

2. The Commodity Board and the Supervisory Board are authorized to regulate the marketing of blueberries in interprovincial and export trade and, for that purpose, with respect to persons and property situated within New Brunswick, to exercise all or any powers like the powers exercisable by them in relation to the marketing of blueberries locally within the province under the Act.

LEVIES AND CHARGES

3. The Commodity Board and the Supervisory Board, in relation to the powers granted to them by section 2 with respect to interprovincial and export trade, are authorized to

  • (a) fix, impose and collect levies or charges from persons within New Brunswick who are engaged in the production or marketing of blueberries and, for those purposes, to classify those persons into groups and fix the levies or charges payable by the members of the different groups in different amounts; and
  • (b) use the levies or charges for their purposes, including the creation of reserves, the payment of expenses and losses resulting from the sale or disposal of any blueberries and the equalization or adjustment among blueberry producers of money realized from the sale of blueberries during any period that they may determine.

COMING INTO FORCE

4. This Order comes into force on the day on which it is registered.

[17-1-o]

  • Footnote 1
    Commodity board (created under provincial laws) means an organization created by producers to market their products that is funded by the farmers of those crops. The leadership and strategies of the commodity boards are set through votes by the farmers. Commodity boards also fund other ventures beneficial to their members, such as research.
  • Footnote 2
    Marketing includes advertising, assembling, buying, financing, offering for sale, packaging, processing, selling, shipping, storing and transporting.
  • Footnote a
    S.C. 1991, c. 34, s. 2
  • Footnote b
    R.S., c. A-6