Vol. 147, No. 15 — July 17, 2013
Registration SOR/2013-144 July 5, 2013
FARM PRODUCTS AGENCIES ACT
Canadian Hatching Egg Producers Proclamation
Deputy of the Governor General
ELIZABETH THE SECOND, by the Grace of God of the United Kingdom, Canada and Her other Realms and Territories QUEEN, Head of the Commonwealth, Defender of the Faith.
To all to whom these Presents shall come or whom the same may in any way concern,
Deputy Attorney General
Whereas the Governor in Council, pursuant to subsection 16(1) of the Farm Products Agencies Act, by the Canadian Hatching Egg Producers Proclamation, established Canadian Hatching Egg Producers;
Whereas paragraph 17(1)(a) of that Act provides that the proclamation shall designate the farm product or farm products in relation to which Canadian Hatching Egg Producers may exercise its powers;
Whereas paragraph 17(2)(c) of that Act provides that the Governor in Council may, by proclamation, amend the terms of a marketing plan that Canadian Hatching Egg Producers is empowered to implement;
Whereas paragraph 17(2)(e) of that Act provides that the Governor in Council may, by proclamation, increase the number of members of Canadian Hatching Egg Producers;
Whereas paragraph 17(2)(f) of that Act provides that the Governor in Council may, by proclamation, provide for a term of appointment of members that varies from the term provided in the proclamation establishing Canadian Hatching Egg Producers;
Whereas, pursuant to the Federal-Provincial Agreement with respect to the establishment of a comprehensive broiler hatching egg marketing program in Canada, the Provinces of Saskatchewan and Alberta have joined Canadian Hatching Egg Producers;
And whereas, by Order in Council P.C. 2013-670 of June 6, 2013, the Governor in Council directed that a proclamation do issue amending the Canadian Hatching Egg Producers Proclamation in accordance with the annexed schedule;
Now know you that We, by and with the advice of Our Privy Council for Canada and pursuant to Order in Council P.C. 2013-670 of June 6, 2013, do by this Our Proclamation amend the Canadian Hatching Egg Producers Proclamation in accordance with the annexed schedule.
Of all which Our Loving Subjects and all others whom these presents may concern are required to take notice and to govern themselves accordingly.
In testimony whereof, We have caused this Our Proclamation to be published and the Great Seal of Canada to be hereunto affixed. WITNESS: STEPHEN WALLACE, Deputy of Our Right Trusty and Well-beloved David Johnston, Chancellor and Principal Companion of Our Order of Canada, Chancellor and Commander of Our Order of Military Merit, Chancellor and Commander of Our Order of Merit of the Police Forces, Governor General and Commander-in-Chief of Canada.
AT OTTAWA, this fourth day of July in the year of Our Lord two thousand and thirteen and in the sixty-second year of Our Reign.
Deputy Registrar General of Canada
GOD SAVE THE QUEEN
1. (1) The third paragraph of the Canadian Hatching Egg Producers Proclamation (see footnote 1) is amended by replacing “five” with “eight”.
(2) Paragraphs (a) and (b) of the fourth paragraph of the Proclamation are replaced by the following:
- (a) broiler hatching eggs and chicks produced in the Provinces of Ontario, Quebec, Manitoba, British Columbia, Saskatchewan and Alberta for chicken production and marketed in interprovincial or export trade; and
- (b) broiler hatching eggs and chicks produced for chicken production in the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador as well as Yukon, the Northwest Territories and Nunavut and shipped into the Provinces of Ontario, Quebec, Manitoba, British Columbia, Saskatchewan and Alberta in interprovincial trade and not for export.
(3) Paragraph (a) of the fifth paragraph of the Proclamation is replaced by the following:
- (a) to implement a quota system for persons engaged in the marketing of chicks produced in the Provinces of Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador or Yukon, the Northwest Territories or Nunavut for chicken production and marketed in the Provinces of Ontario, Quebec, Manitoba, British Columbia, Saskatchewan and Alberta;
2. (1) The definitions “non-signatory provinces” and “signatory provinces” in section 1 of the schedule to the Proclamation are replaced by the following:
“non-signatory provinces” means the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador as well as Yukon, the Northwest Territories and Nunavut; (provinces non signataires)
“signatory provinces” means the Provinces of Ontario, Quebec, Manitoba, British Columbia, Saskatchewan and Alberta. (provinces signataires)
(2) The definition “Commodity Board” in section 1 of the schedule to the Proclamation is amended by striking out “and” at the end of paragraph (c) and by adding the following after paragraph (d):
- (e) Saskatchewan, the Saskatchewan Broiler Hatching Egg Producers’ Marketing Board, and
- (f) Alberta, the Alberta Hatching Egg Producers; (office provincial de commercialisation)
(3) Paragraph (a) of the definition “Commodity Board” in section 1 of the schedule to the French version of the Proclamation is replaced by the following:
- a) En Ontario, la Ontario Broiler Hatching Egg & Chick Commission;
3. (1) Paragraph 2(2)(a) of the schedule to the Proclamation is replaced by the following:
- (a) the Commodity Board of each signatory province shall appoint one member, who is a resident of Canada, from among those of the Commodity Board’s directors who are actively engaged in the production of broiler hatching eggs and, where that member is involved in the setting of broiler hatching eggs in incubators, the hatchery of that member shall be licensed by the provincial Commodity Board that is authorized to license or, in the case of the Province of Quebec, shall be covered by an association of hatcheries accredited by that province’s supervisory board;
(2) Subsection 2(3) of the schedule to the Proclamation is replaced by the following:
(3) A Commodity Board or the Canadian Hatchery Federation may appoint a person with the same qualifications for membership as are required for a member to be appointed by the Board or Federation to be a temporary substitute member to act in the place of each member appointed by it when that member is absent, is unable to act or is elected Chairperson of the Agency and to hold office as a temporary substitute member until the member in whose place the temporary substitute member is appointed to act ceases to be a member.
(3) Subsection 2(6) of the schedule to the Proclamation is repealed.
4. The table to section 6.1 of the schedule to the Proclamation is replaced by the following:
Province or Area
Total Number of Chicks
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Proclamation.)
The Farm Products Marketing Agencies Act of 1972 (FPMAA), now known as the Farm Products Agencies Act (FPAA), provides the legal foundation for the four national marketing (see footnote 2) agencies (Chicken Farmers of Canada, Egg Farmers of Canada, Turkey Farmers of Canada and the Canadian Hatching Egg Producers), which are responsible for implementing and administering their respective marketing plans. These marketing plans describe the quota, licensing, and levy systems to be implemented, as well as provisions for review and other general items specific to the regulated commodity in question. The FPAA also provided the legal foundation for the creation of the Canadian Beef Cattle Research, Market Development and Promotion Agency. Promotion and research agencies provide a stable funding source for research, market development and promotional activities through levies, referred to as check-offs, on beef and beef products.
The FPMAA also allowed for the creation of the National Farm Products Council (NFPC), also referred to by its applied name, the Farm Products Council of Canada (FPCC). The NFPC is a public interest oversight body responsible for ensuring that the national supply management system for poultry and eggs works in the balanced interest of producers, processors and consumers and can withstand public scrutiny. The national supply management system is unique to Canada as federal and provincial laws allow farmers to work together to determine how much of each commodity needs to be produced in order to meet consumer demand. By matching the supply with the demand, supply management results in a stable supply with fair prices. This is achieved through the approval of quota regulations, levies orders and licensing regulations as well as reviewing each national marketing agency’s annual business plan, budget and policies.
A federal-provincial agreement (FPA) links the federal and provincial jurisdictions so as to achieve the necessary cooperation and coordination between the two. An agreement also sets out the specific obligations and responsibilities of the signatory parties so that the agencies are able to implement a particular marketing plan.
Canadian Hatching Egg Producers (CHEP), which was created in 1986, is a national marketing agency administered by a fivemember board. The board of directors is presently comprised of one representative from each provincial commodity board (see footnote 3) (Ontario, Quebec, Manitoba, and British Columbia) as well as a representative from the Canadian Hatchery Federation (CHF).
CHEP (the Agency) estimates the annual national and provincial demand for broiler hatching eggs and prepares a federal quota regulation (see footnote 4) and an orderly marketing regulation (see footnote 5) to allocate the upper limits of eggs for each provincial commodity board. The Agency enacts the regulations for the provinces once approved by the NFPC, and they are then published in the Canada Gazette, Part II.
Broiler hatching egg producers are divided into two groups: signatory and non-signatory provinces. Signatory provinces, which include the provinces of Ontario, Quebec, Manitoba and British Columbia, can vote on all Agency decisions and are represented on the board of directors. Non-signatory provinces or territories, which include Nova Scotia, New Brunswick, Prince Edward Island, Saskatchewan, Alberta, Newfoundland and Labrador, the Northwest Territories, Yukon and Nunavut, are not part of CHEP and are therefore not represented on the board.
All signatory and non-signatory provincial commodity boards are allotted their share of the quota production by using a combination of criteria specified in the Canadian Hatching Egg Producers Proclamation (CHEP Proclamation), the Canadian Broiler Hatching Egg and Chick Orderly Marketing Regulations, and the Canadian Hatching Egg Producers Quota Regulations, which establish the allocation process for all provinces. The provincial commodity boards in turn allot quotas to the producers. In 2010, there were 252 hatching egg producers.
This amendment is being sought at the request of CHEP and the provinces of Alberta and Saskatchewan and will readmit the province of Alberta and admit the province of Saskatchewan into the existing FPA. In order to legally bring them into the existing FPA as signatory members, an amendment to the CHEP Proclamation is required.
Since 2009, Saskatchewan and Alberta have both entered into operating arrangements with the Agency that provided them a voice during board of directors meetings and afforded the representatives from each province many of the rights and privileges accorded to representatives from the existing member provinces. Thus, both provinces pay the national levy to the Agency and abide by any policy decisions coming from the Agency. However, neither Saskatchewan nor Alberta is able to move any motions or vote on any decisions, nor can they hold the position of Chair or Vice-Chair.
Over the past few years, CHEP has engaged in efforts to renew and modernize the existing FPA, which will reflect current policies and practices and bring Alberta and Saskatchewan into the agreement as signatory members. The adhesion of Alberta and Saskatchewan into the agreement has now been finalized.
Alberta joined the Agency in 1986 and withdrew in December 2004 (the Agency did not amend its Proclamation until 2007) as the province was constantly facing production penalties and pressure from the Agency and other signatory provinces to adjust its provincial allocation methodology to better conform to the national allocation methodology. The allocation issue was that Alberta’s import share of their total provincial domestic market was significantly lower than the other member provinces, which caused imports to move from Alberta to other provinces. Since then, the issues between the Agency and Alberta were resolved by eliminating the production penalty and reaching an agreement that moves Alberta’s import share of their domestic supply up to the level of other member provinces.
In 2001, the Agency began to draft a renewed FPA for broiler hatching eggs. During that time, Saskatchewan expressed interest in joining the Agency. Saskatchewan decided to wait for the renewed FPA as it seemed the drafting process was progressing and the draft FPA would be completed within a couple of years. As mentioned above, the drafting of the renewed FPA has not been finalized and additional discussions are required. As a result, while additional discussions take place, Saskatchewan has taken the decision to sign the existing FPA.
The renewal of the FPA, which remains a priority for the Agency, will resume now that Alberta and Saskatchewan have been added as signatory provinces.
The major amendments to the Canadian Hatching Egg Producers Proclamation will
- —Amend paragraph 2(2)(a), a residency requirement, that signatory provinces must appoint board members from their respective provinces to being a Canadian resident. This would allow provincial commodity boards greater flexibility in determining who would represent them on the Agency board of directors.
- —Amend subsection 2(3) to permit CHF to appoint an alternate (temporary substitute) member and to allow for an independent Chair of the Agency. Pursuant to paragraph (2)(a), whenever a member is absent or unable to act, a temporary substitute member of the Agency can be appointed to act in the place and stead of the member appointed by that commodity board.
- —Delete subsection 2(6), which limits under subsection (2) the appointment of any member for a maximum of four consecutive terms; and
- —Remove from the French text in the interpretation section of the Proclamation “Commission ontarienne de commercialisation des œufs d’incubation et des poussins de poulet” and replace it with its official name, “Ontario Broiler Hatching Egg & Chick Commission.”
This proposal will allow the provinces of Alberta and Saskatchewan to
- —be signatory members;
- —vote on Agency business; and
- —add three extra members to the Agency’s board of directors, bringing the total from five to eight, including a second member of CHF who can serve as an alternate member.
The addition of the provinces of Alberta and Saskatchewan as signatories will ensure better representation within the national supply management system. It will also serve to stabilize the hatching egg sector by adding two provinces and one extra member from CHF to the board.
The amendments stated above will facilitate the operations of the Agency and will also allow for greater succession planning by removing the limitations of tenure and residency and allow for an independent Chair of the Agency.
Preliminary discussions were held with the provincial commodity boards and supervisory boards (see footnote 6) from all of the current signatory provinces, as well as with Alberta and Saskatchewan. Every board indicated their support for this approach. Formal consultations on the amendment of the existing Proclamation to allow Alberta and Saskatchewan to join CHEP followed in November 2011. Since then, a series of meetings have taken place between the signatory provinces, CHEP and NFPC. In addition, multiple discussions between provincial supervisory boards and the NFPC have occurred.
In order to finalize these consultations, the NFPC, Agriculture and Agri-Food Canada and CHEP sent out letters clearly explaining the amendments to the Proclamation to all current signatory provinces, as well as the provinces of Alberta and Saskatchewan. The non-signatory provinces and territories were copied on these letters as well. After extensive consultations with signatory provinces and Alberta and Saskatchewan, all parties expressed their support for the amendments of the CHEP Proclamation.
This amendment to the Proclamation was published in the Canada Gazette, Part I, on February 23, 2013, for a period of 30 days and no comments were received.
The amendments are consistent with the wording found in the Proclamationand will provide more flexibility to the provinces in determining who, subject to their own legislation, will represent them on CHEP’s board of directors. These amendments will also expend and aid in the administration of the board with regard to the appointment of a substitute member for the CHF and an independent Chair. The elimination of term limits will allow for greater continuity on the board and facilitate succession planning.
7. Implementation, enforcement and service standards
Implementation of this proposal is being brought forward pursuant to subsection 16(1) of the FPAA, which states that “the Governor in Council may, by proclamation, establish an agency with powers relating to any farm product or farm products the marketing of which in interprovincial and export trade is not regulated under the Canadian Dairy Commission Act if the Governor in Council is satisfied that a majority of the producers of the farm product or of each of the farm products in Canada is in favour of the establishment of an agency.” The enforcement of any provisions in this amendment is the responsibility of CHEP, under the monitoring of NFPC, and may be found clearly identified in the CHEP Proclamation, the FPA and all applicable provisions of the FPAA.
Corporate and Regulatory Affairs
Farm Products Council of Canada
Farm Products Council of Canada
- Footnote 1
- Footnote 2
Marketing includes advertising, assembling, buying, financing, offering for sale, packaging, processing, selling, shipping, storing and transporting.
- Footnote 3
Provincial commodity board (created under provincial laws) means an organization created by producers to market their products that are funded by the farmers of those crops. The leadership and strategies of the commodity boards are set through votes by the farmers. They also fund other ventures beneficial to their members such as research.
- Footnote 4
A quota regulation enables an Agency to establish a quota system for persons engaged in the marketing of broiler hatching eggs chicks produced in a signatory province.
- Footnote 5
An orderly marketing regulation enables an Agency to establish a quota system for persons engaged in the marketing of broiler hatching eggs chicks produced in a non-signatory province, yet marketed into a signatory province.
- Footnote 6
A supervisory board is a provincial (or territorial) government organization mandated to supervise the operations of provincial (or territorial) commodity boards within a province (or territory).