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O. Reg. 264/02: CHICKENS - MARKETING

filed September 16, 2002 under Farm Products Marketing Act, R.S.O. 1990, c. F.9

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ONTARIO regulation 264/02

made under the

farm products marketing act

Made: September 11, 2002
 Filed: September 16, 2002
Printed in The Ontario Gazette: October 5, 2002

Amending Reg. 402 of R.R.O. 1990

(Chickens — Marketing)

1. Clauses 5 (b), (c) and (d) of Regulation 402 of the Revised Regulations of Ontario, 1990 are revoked and the following sub­stituted:

(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;

2. Sections 17, 18 and 19 of the Regulation are revoked and the following substituted:

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.

(2) The local board shall appoint five members to the negotiating agency.

(3) The licensed Ontario chicken processors shall appoint five members to the negotiating agency.

(4) The members appointed under subsections (2) and (3) shall be appointed for every two quota periods fixed by the local board.

(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.

(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.

(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.

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.

(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.

(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.

(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.

(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).

(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.

(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.

(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).

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.

(2) The Commission shall refer the matters in dispute to an arbitration board.

(3) The arbitration board shall be composed of one member, who shall be appointed by the members of the negotiating agency.

(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.

(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.

(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.

(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.

(8) The arbitration shall be conducted in accordance with the formula for minimum live prices for chickens in the Schedule.

3. The Regulation is amended by adding the following Schedule:

Schedule

1. In this Schedule,

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

“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,

(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;

“feed” means broiler chicken feed;

“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,

(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;

“producer margin” is $0.379 per kilogram from the date that this Schedule comes into force until the end of Quota Period A50, and thereafter means the producer margin that is renegotiated in accordance with this Regulation.

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.

Ontario Farm Products Marketing Commission:

Rod Stork

Chair

Gloria Marco Borys

Secretary

Dated on September 11, 2002.

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