Vol. 145, No. 5 — March 2, 2011

Registration

SOR/2011-33 February 10, 2011

AGRICULTURAL PRODUCTS MARKETING ACT

ARCHIVED — British Columbia Cranberry Order

P.C. 2011-206 February 10, 2011

His Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to section 2 (see footnote a) of the Agricultural Products Marketing Act (see footnote b), hereby makes the annexed British Columbia Cranberry Order.

BRITISH COLUMBIA CRANBERRY ORDER

INTERPRETATION

1. The following definitions apply in this Order.

“Act” means the Natural Products Marketing (BC) Act, RSBC 1996, c. 330. (Loi)

“Commission” means the British Columbia Cranberry Marketing Commission. (Commission)

“cranberries” means any variety of cranberries (vaccinium macrocarpon) grown in the area to which the Plan relates. (canneberge)

“Plan” means the British Columbia Cranberry Marketing Scheme, 1968. (plan)

INTERPROVINCIAL AND EXPORT TRADE

2. The Commission is authorized to regulate the marketing of cranberries in interprovincial and export trade, and for those purposes may, with respect to persons and property situated within British Columbia, exercise all or any powers like the powers exercisable by it in relation to the marketing of cranberries locally within that province under the Act and the Plan.

LEVIES AND CHARGES

3. The Commission may, in relation to the powers granted to it by section 2,

(a) fix, impose and collect levies or charges from persons within British Columbia who are engaged in the production or marketing of cranberries or any part of cranberries and for that purpose may 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 the purposes of the Commission, including the creation of reserves, the payment of expenses and losses resulting from the sale or disposal of cranberries and the equalization or adjustment among producers of cranberries of money realized from the sale of cranberries during any period that the Commission may determine.

COMING INTO FORCE

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

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issue and objectives

The British Columbia Cranberry Marketing Commission (“Commission”) is a provincial commodity marketing board with the authority to promote, regulate and control in any and all respects, to the extent of the powers of the Province, the transportation, processing, packing, storing and marketing of cranberries. The BC Cranberry Marketing Scheme was enacted by the Province of BC in 1968 by BC Regulation 259/68. It was updated in 2004 by BC Order in Council No. 1086.

As over 90% of the cranberries grown in British Columbia enter interprovincial and international trade, the Commission requires an extension of its provincial authority to impose and collect levies on all BC cranberry production. As these levies are currently all being paid voluntarily by every affected grower without exception, the Order is formalizing the current voluntary system and has a neutral impact.

This Order

• strengthens and clarifies the Commission’s authority;
• imposes and allows for the collection of levies on cranberries moving to interprovincial and international trade; and
• uses the funds generated by the levy to provide services to growers, notably production research, health benefits research and national and international promotion of cranberries.

Description and rationale

The Order ensures the fair and equitable distribution of the costs of providing services to growers and administering the Commission. The federal Order applies to all BC-grown cranberries moving to interprovincial and export trade. The levy is the same as the levy imposed on growers marketing cranberries within British Columbia. All levies are withheld by buyers (first receivers) from funds otherwise due to growers and remitted directly to the Commission on behalf of those growers.

The BC Investment Agriculture Foundation (“IAF”), with funding from Agriculture and Agri-Food Canada and the BC Ministry of Agriculture and Lands, financially supports the Commission’s research and promotion programs. Generally, IAF matches producer levies for specific projects, meaning the producer levies are, in effect, doubled to fund grower services. The Commission’s ability to receive grower levies takes on an added importance.

Levies are only imposed and collected on BC cranberry growers; no other sector of the industry pays levies and no other commodity is subject to the Commission’s authority. Levies are currently $0.003/lb (3 tenths of 1 cent per pound) and, when applied to an average annual BC cranberry crop of 80 000 000 lbs, yields average annual revenues of $240,000. The annual cost of operating the Commission is approximately $100,000, leaving $140,000 for grower services, and when matched by IAF the total funds available for services are approximately $280,000.

Consultation

This federal order was supported unanimously by all BC cranberry growers at four successive Commission Annual General Meetings (2006–09). Additionally, the support of the BC Cranberry Growers Association was given by formal motion of their members.

The need for the BC Cranberry federal Order is also supported by the British Columbia Ministry of Agriculture and Lands and by the British Columbia Farm Industry Review Board.

The Order was published in the Canada Gazette, Part I, for 30 days and no representations were received.

Implementation, enforcement and service standards

All growers and handlers of BC-grown cranberries must obtain an annual license issued by the Commission. One requirement of the licence is that the applicant must be and remain to be in good standing with the Commission, meaning that in order for the applicant to renew a license, levies must be remitted to the Commission as required by the Commission’s General Order.

The British Columbia Cranberry Marketing Commission meets annually with each buyer to review any issues and to ensure compliance with its Orders. All buyers are required to submit records of pounds handled and of levies retained and submitted.

Contact

Claude Janelle
Executive Director
Farm Products Council of Canada
344 Slater Street
Ottawa, Ontario
K1R 7Y3
Telephone: 613-995-0682
Email: claude.janelle@agr.gc.ca

Footnote a
S.C. 1991, c. 34, s. 2

Footnote b
R.S., c. A-6