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Farm Products Marketing Act

R.R.O. 1990, REGULATION 402

Amended to O. Reg. 109/05

CHICKENS — MARKETING

Historical version for the period March 17, 2005 to September 19, 2005.

This is the English version of a bilingual regulation.

1. In this Regulation,

“chicken” means a chicken or any class or part thereof produced from the egg of a domestic hen; (“poulet”)

“local board” means Chicken Farmers of Ontario; (“commission locale”)

“plan” means the Ontario Chicken Plan; (“plan”)

“processor” means a person who slaughters chickens, and “processing” has a corresponding meaning; (“transformateur”)

“producer” means a person engaged in the production of chickens. (“producteur”) R.R.O. 1990, Reg. 402, s. 1; O. Reg. 528/96, s. 1.

2. This Regulation provides for the control and regulation in any or all respects of the producing and marketing within Ontario of chickens, including the prohibition of such producing and marketing in whole or in part. R.R.O. 1990, Reg. 402, s. 2.

3. Revoked: O. Reg. 404/95, s. 1.

Powers of Local Board

4. The Commission delegates to the local board the power,

(a) to require persons engaged in producing or marketing chickens to register their names, addresses and occupations with the local board;

(b) to require persons engaged in producing or marketing chickens to furnish such information relating to the production or marketing of chickens, including the completing and filing of returns, as the local board determines;

(c) to appoint persons to,

(i) inspect the books, records, documents, lands and premises and any chickens of persons engaged in producing or marketing chickens, and

(ii) enter on lands or premises used for the producing of chickens and perform a count of chickens;

(d) to stimulate, increase and improve the marketing of chickens by such means as it considers proper;

(e) to co-operate with a marketing board, local board, marketing commission or marketing agency of Canada or of any province in Canada for the purpose of marketing chickens;

(f) to do such acts and make such orders and issue such directions as are necessary to enforce the due observance and carrying out of the Act, the regulations and the plan. R.R.O. 1990, Reg. 402, s. 4.

5. The Commission delegates to the local board its powers to make regulations with respect to chickens,

(a) providing for the licensing of any or all persons before commencing or continuing to engage in the producing, marketing or processing of chickens;

(b) prescribing or providing for classes of licences and the imposition of terms and conditions of any class of licence;

(c) prohibiting persons from engaging in the producing, marketing or processing of chickens except under the authority of a licence and except in compliance with the terms and conditions of the licence;

(d) providing for the refusal to grant or renew, or the suspension or revocation of, a licence,

(i) where the applicant or licensee is not qualified by experience, financial responsibility or equipment to properly engage in the business for which the application was made or the licence granted, or

(ii) where the applicant or licensee has failed to comply with or has contravened the Act, the regulations, the plan or any order or direction of the Commission or local board or of a marketing agency of Canada;

(d.1) providing for the imposition, amount, disposition, and use of penalties, where, after a hearing, the local board is of the opinion that the applicant or licensee has failed to comply with or has contravened any term or condition of the licence or any provision of the Act, the regulations, any plan or any order or direction of the local board;

(e) prescribing the form of licences;

(f) providing for the exemption from any or all of the regulations, orders or directions under the plan of any class, variety, grade or size of chickens, or any person or class of persons engaged in the producing or marketing of chickens or any class, variety, grade or size of chickens;

(g) providing for the fixing of licence fees payable yearly, half-yearly, quarterly or monthly at different amounts or in instalments from any or all persons producing or marketing chickens and the collecting of the licence fees and the recovering of such licence fees by suit in a court of competent jurisdiction;

(h) requiring any person who receives chickens to deduct from the money payable for the chickens any licence fees payable to the local board by the person from whom he, she or it receives the chickens, and to forward such licence fees to the local board;

(i) requiring and providing for the furnishing of security or proof of financial responsibility or of a performance bond by a person or class of persons engaged in the producing, marketing or processing of chicken and providing for the administration, forfeiture and disposition of any money or securities so furnished and the proceeds therefrom;

(j) providing for the control and regulation of the marketing of chickens, including the times and places at which chickens may be marketed;

(k) providing for the control and regulation of agreements entered into by producers of chickens with persons engaged in marketing or processing chickens, and the prohibition of any provision or clause in such agreements;

(l) requiring any person who produces chickens to offer to sell and to sell the chickens through the local board;

(m) prohibiting any person from processing, packing or packaging any chickens that have not been sold by or through the local board;

(n) providing for the making of agreements relating to the marketing of chickens by or through the local board, and prescribing the terms and conditions of such agreements; and

(o) providing for the making of such orders and the issuing of such directions as are necessary to enforce the due observance and carrying out of the Act, the regulations, the plan or any order or direction of the local board. R.R.O. 1990, Reg. 402, s. 5; O. Reg. 404/95, s. 2; O. Reg. 443/97, s. 1; O. Reg. 264/02, s. 1.

6. (1) All chickens shall be marketed through the local board. R.R.O. 1990, Reg. 402, s. 6 (1).

(2) No person shall market chickens except through the local board. R.R.O. 1990, Reg. 402, s. 6 (2).

7. The Commission vests in the local board the following powers:

1. To direct and control by order or direction, either as principal or agent, the marketing of chickens, including the times and places at which chickens may be marketed.

2. To prohibit the marketing of any class, variety, grade or size of chickens.

3. Revoked: O. Reg. 194/92, s. 1.

4. To fix and impose service charges from time to time for the marketing of chickens.

5. To purchase or otherwise acquire such quantity or quantities of chickens as the local board considers advisable and to sell or otherwise dispose of any chickens so purchased or acquired. R.R.O. 1990, Reg. 402, s. 7; O. Reg. 194/92, s. 1.

8. (1) Any person who produces and processes chickens shall, not later than the 31st day of January in any year, furnish to the local board a statement of the amount of chicken produced and used for processing in the preceding year. R.R.O. 1990, Reg. 402, s. 8 (1).

(2) Any person who produces and processes chickens shall pay licence fees monthly to the local board in the same amounts as are prescribed by the local board under clause 5 (g) for every kilogram of chicken produced and processed. R.R.O. 1990, Reg. 402, s. 8 (2).

(3) Any person who produces and processes chickens shall forward to the local board the licence fees payable in any month not later than the 15th day of the following month. R.R.O. 1990, Reg. 402, s. 8 (3).

9. The local board may recover from any person by suit in a court of competent jurisdiction any licence fees payable to the local board. R.R.O. 1990, Reg. 402, s. 9.

Quotas

10. (1) The Commission authorizes the local board,

(a) to require that chickens be marketed on a quota basis;

(b) to prohibit any person to whom a quota has not been fixed and allotted for the marketing of chickens or whose quota has been cancelled from marketing any chickens;

(c) to prohibit any person to whom a quota has been fixed and allotted for the marketing of chickens from marketing any chickens in excess of such quota; and

(d) to prohibit any person to whom a quota has been fixed and allotted for the marketing of chickens produced on lands or premises in respect of which such quota has fixed and allotted from marketing any chickens other than chickens produced on such lands or premises. R.R.O. 1990, Reg. 402, s. 10 (1).

(2) The Commission authorizes the local board,

(a) to fix and allot to persons quotas for the marketing of chickens on such basis as the local board considers proper;

(b) to refuse to fix and allot to any person a quota for the marketing of chickens for any reason that the local board considers proper; and

(c) to cancel or reduce, or refuse to increase, a quota fixed and allotted to any person for the marketing of chickens for any reason that the local board considers proper. R.R.O. 1990, Reg. 402, s. 10 (2).

11. (1) The Commission authorizes the local board,

(a) to require that chickens be produced on a quota basis;

(b) to prohibit any person to whom a quota has not been fixed and allotted for the producing of chickens or whose quota has been cancelled from producing any chickens;

(c) to prohibit any person to whom a quota has been fixed and allotted for the production of chickens from producing any chickens in excess of such quota; and

(d) to prohibit any person to whom a quota has been fixed and allotted for the producing of chickens on lands or premises in respect of which such quota was fixed and allotted from producing any chickens other than chickens produced on such lands and premises. R.R.O. 1990, Reg. 402, s. 11 (1).

(2) The Commission authorizes the local board,

(a) to fix and allot to persons quotas for the producing of chickens on such basis as the local board considers proper;

(b) to refuse to fix and allot to any person a quota for the producing of chickens for any reason that the local board considers proper;

(c) to cancel or reduce, or refuse to increase, a quota fixed and allotted to any person for producing chickens for any reason that the local board considers proper, and without limiting the generality of the foregoing, to cancel or reduce any such quota as a penalty where the local board believes on reasonable grounds that the person to whom the quota was fixed and allotted has contravened the Act or the regulations; and

(d) to permit any person to whom a quota has been fixed and allotted for the producing of chickens to produce any chickens in excess of such quota on such terms and conditions as the local board considers proper. R.R.O. 1990, Reg. 402, s. 11 (2).

12. (1) The Commission authorizes the local board to use any class of licence fees, service charges and other money payable to it, for the purpose of paying the expenses of the local board, carrying out and enforcing the Act and the regulations and carrying out the purposes of the plan. R.R.O. 1990, Reg. 402, s. 12 (1).

(2) The Commission authorizes the local board to establish a fund in connection with the plan for the payment of any money that may be required for the purposes mentioned in subsection (1). R.R.O. 1990, Reg. 402, s. 12 (2).

13. Revoked: O. Reg. 194/92, s. 2.

Power to Conduct Pools

14. The Commission authorizes the local board to conduct a pool or pools for the distribution of all money received from the sale of chickens and, after deducting all necessary and proper disbursements and expenses, to distribute the remainder of the money received from the sale in such manner that every producer receives a share of the remainder of the money received from the sale in relation to the amount, class, variety, grade or size of chickens delivered by the producer, and authorizes the local board to make an initial payment on delivery of the chickens and subsequent payments until all of the remainder of the money received from the sale is distributed to the producers. R.R.O. 1990, Reg. 402, s. 14.

15. The Commission authorizes the local board to require the price or prices payable or owing to the producers for chickens to be paid to or through the local board and to recover such price or prices by suit in a court of competent jurisdiction. R.R.O. 1990, Reg. 402, s. 15.

16. The Commission authorizes the local board to appoint agents, to prescribe their duties and terms and conditions of employment and to provide for their remuneration. R.R.O. 1990, Reg. 402, s. 16.

Negotiating Agency

17. (1) There shall be a negotiating agency consisting of two parties, one of which represents the local board and one of which represents the licensed Ontario chicken processors. O. Reg. 264/02, s. 2.

(2) The local board shall appoint five members to the negotiating agency. O. Reg. 264/02, s. 2.

(3) The licensed Ontario chicken processors shall appoint five members to the negotiating agency. O. Reg. 264/02, s. 2.

(4) The members appointed under subsections (2) and (3) shall be appointed for every two quota periods fixed by the local board. O. Reg. 264/02, s. 2.

(5) The local board and the licensed processors shall notify each other and the Commission in writing of the names and addresses of their appointees at least 23 weeks before the beginning of the first of the quota periods for which they are negotiating the price. O. Reg. 264/02, s. 2.

(6) If the Commission is not notified by the time set out in subsection (5), it shall appoint the members necessary to complete the negotiating agency. O. Reg. 264/02, s. 2.

(7) If a member of the negotiating agency dies, resigns, or is unable or unwilling to act, the local board, the licensed processors or the Commission, as the case may be, shall appoint a replacement and advise the other parties of his or her name and address. O. Reg. 264/02, s. 2.

18. (1) Subject to subsections (6) and (7), the negotiating agency may settle by agreement minimum live prices for chickens or for any class, variety, grade or size of chickens in accordance with this section. O. Reg. 264/02, s. 2.

(2) Subject to subsection (3), the minimum live price for chickens shall be negotiated every two quota periods fixed by the local board and in accordance with the formula in the Schedule. O. Reg. 264/02, s. 2.

(3) The producer margin component of the minimum live price for chickens as described in the Schedule may be negotiated once every six quota periods fixed by the local board. O. Reg. 264/02, s. 2.

(4) Despite subsection (3), the producer margin component of the minimum live price for chickens as described in the Schedule may be renegotiated more often than once every six quota periods if exceptional and unforeseen circumstances exist. O. Reg. 264/02, s. 2.

(5) If the producer margin is renegotiated in accordance with subsection (4), any renegotiated producer margins shall remain in effect for the balance of the six quota period set out in subsection (3). O. Reg. 264/02, s. 2.

(6) Subject to subsection (8), whenever the negotiating agency negotiates to determine the category pricing grid, it shall give notice to interested organizations who have requested to receive such notice, including the Canadian Restaurant and Foodservices Association, and those organizations shall be entitled to participate in the negotiations. O. Reg. 264/02, s. 2.

(7) Subject to subsection (8), if an interested organization, including the Canadian Restaurant and Foodservices Association, wishes the negotiating agency to negotiate the category pricing grid, the organization may, upon request to the negotiating agency, initiate and participate in the negotiations. O. Reg. 264/02, s. 2.

(8) The participation by interested organizations under subsections (6) and (7) is limited to participation in the negotiations to determine the category pricing grid, but does not include the right to proceed under section 19 to arbitration and to file a statement with the Commission under clause 19 (1) (b). O. Reg. 264/02, s. 2.

Arbitration

19. (1) If the negotiating agency does not arrive at an agreement by 4 p.m. on the day which is 22 weeks before the beginning of the first of the two quota periods on all matters that it may settle by agreement or decides before that date that an agreement cannot be reached, it shall submit in writing to the Commission,

(a) a signed agreement concerning any matters agreed to; and

(b) a statement of the final position of each of the parties on each matter in dispute. O. Reg. 264/02, s. 2.

(2) The Commission shall refer the matters in dispute to an arbitration board. O. Reg. 264/02, s. 2.

(3) The arbitration board shall be composed of one member, who shall be appointed by the members of the negotiating agency. O. Reg. 264/02, s. 2.

(4) If the member of the arbitration board has not been appointed at least 21 weeks before the beginning of the first of the two quota periods, the Commission shall make the appointment. O. Reg. 264/02, s. 2.

(5) If the member of the arbitration board dies, resigns or is unable or unwilling to act before he or she has made an award, the negotiating agency or the Commission, as the case may be, shall appoint a new member and the new member shall continue and complete the arbitration. O. Reg. 264/02, s. 2.

(6) The arbitration board shall make its award by 4 p.m. on the day which is 19 weeks before the beginning of the first of the two quota periods by selecting without modification one of the final positions on each matter submitted by the parties, and shall provide written reasons for the selection at least 18 weeks before the beginning of the first of the two quota periods. O. Reg. 264/02, s. 2.

(7) The arbitration board shall not make an award if the parties reach an agreement on all matters in dispute and inform the board of that fact before an award is made. O. Reg. 264/02, s. 2.

(8) The arbitration shall be conducted in accordance with the formula for minimum live prices for chickens in the Schedule. O. Reg. 264/02, s. 2.

Transitional

20. (1) Sections 17, 18 and 19 as they read immediately before the coming into force of Ontario Regulation 264/02 continue to apply to negotiations and arbitrations for quota periods before Quota Period A52, but all negotiations and arbitrations with respect to Quota Period A52 shall be done in accordance with sections 17, 18 and 19 as they read after the coming into force of Ontario Regulation 264/02. O. Reg. 321/02, s. 1.

(2) Any action done with respect to a quota period before Quota Period A52 in accordance with sections 17, 18 and 19 as they read immediately before the coming into force of Ontario Regulation 264/02 shall be deemed to be valid for all purposes of the Commission. O. Reg. 321/02, s. 1.

SCHEDULE

1. In this Schedule,

“chick” means a chicken that is less than seven days of age; (“poussin”)

“chick price” means,

(a) for the purposes of paragraph 2, the regulated live chick price established by the Ontario Broiler Hatching Egg and Chick Commission for sexed mixed chicks expressed in cents per kilogram of live chicken as set for Quota Period A45, and adjusted as necessary in accordance with this Regulation,

(b) for the purposes of paragraph 5, the regulated live chick price established by the Ontario Broiler Hatching Egg and Chick Commission for sexed mixed chicks expressed in cents per chick as set for Quota Period A45, and adjusted as necessary in accordance with this Regulation; (“prix du poussin”)

“feed” means broiler chicken feed; (“nourriture”)

“feed price” means,

(a) for the purposes of paragraph 2, the weighted average stated price derived from a minimum of three independent feed mills located in Ontario, with the largest volume of sales of chicken broiler feed, expressed in cents per kilogram of live chicken as set for Quota Period A45, and adjusted as necessary in accordance with this Regulation,

(b) for the purposes of paragraph 4, the weighted average stated price derived from a minimum of three independent feed mills, located in Ontario, with the largest volume of sales of chicken broiler feed, expressed in dollars per tonne as set for Quota Period A45, and adjusted as necessary in accordance with this Regulation; (“prix de la nourriture”)

“producer margin” is $0.379 per kilogram until the end of Quota Period A50, and thereafter means the producer margin that is negotiated in accordance with this Regulation. (“marge de profit du producteur”)

2. The formula to determine the minimum live price for chicken is as follows:

minimum live price = producer margin + chick price + feed price

3. In each case the producer margin component, as determined by negotiation and if necessary arbitration, will take into account the impact of the costs incurred by producers in the producing and marketing of chickens.

4. For every $5/tonne change in the feed price, the minimum live price will be adjusted by one cent in the corresponding direction.

5. For every one-cent change in the chick price, the minimum live price will be adjusted by one-half cent in the corresponding direction.

O. Reg. 264/02, s. 3; O. Reg. 321/02, s. 2.