BRITISH COLUMBIA VEGETABLE MARKETING COMMISSION. Decision Regarding. Island Vegetable Co-operative Association

Transcription

1 BRITISH COLUMBIA VEGETABLE MARKETING COMMISSION Decision Regarding Island Vegetable Co-operative Association Request for Authority to Market Greenhouse Vegetables COMMISSION PANEL: APPLICANT: INTERVENERS: David Taylor, Chair John Newell, Member Cory Gerrard, Member Hugh Reynolds, Member Blair Lodder, Member Tom Demma, Registrar Island Vegetable Co-operative Association J. Collins, Vancouver Island Farms Products Inc. S. Potter, V. I. P. Produce Ltd Issue Requiring Decision 1. The BC Vegetable Marketing Commission ( Commission ) is to reach a decision about the Island Vegetable Cooperative Association (IVCA) application to add greenhouse vegetable crops to the crops that it currently is authorized by the Commission to market. Background 2. In accordance with Sections 8 11 of Part XVIII Procedures for Assigning Production Allocations for Greenhouse Crops of the Commission s General Order on April 23, 2013 the Commission received an application from Ian Vantreight, dba Vantreight Farms, for new greenhouse bell pepper production allocation for having effect the 2013 crop year and thereafter. The greenhouse bell peppers are to be produced using certified organic production standards. 3. Consistent with Commission administrative procedures regarding applications for new greenhouse vegetable Production Allocation, on April 25, 2013 all greenhouse vegetable designated agencies were informed of the I. Vantreight application for 7,744 square metres of bell pepper production allocation. As provided for in established Commission administrative procedures pertaining to new greenhouse production allocation applications the mentioned agencies were provided five business days to register with the Commission an objection to it approving the Vantreight application. 4. On completing its established administrative procedures when new greenhouse vegetable production allocation applications are received and with the Commission not receiving objections by the response deadline on May 3, 2013 the Commission reached an administrative 1

2 decision to conditionally assign to I. Vantreight 7,744 square metres of bell pepper production allocation for having effect the 2013 crop year and thereafter. 5. I. Vantreight, a proprietor dba Vantreight Farms, markets storage crops through IVCA, which is a Designated Agency of the Commission. Vantreight Farms is a long time storage crop producer and its interest is to diversify the farm business by adding an organic greenhouse bell pepper production enterprise. Mr. Vantreight s interest is to market the greenhouse bell peppers through IVCA and by doing so have a common designated agency for marketing regulated storage and greenhouse vegetable crops. 6. At the time of I. Vantreight s application for new bell pepper production allocation IVCA had Commission authority to market storage crops only. 7. On April 23, 2013 the Commission received from IVCA a letter setting out its interest to be authorized by the Commission to market greenhouse vegetables in addition to its current authority to market storage crops. In part, and pursuant to Part XV of the General Order the Commission considered the mentioned letter as an application. 8. During a telephone conference call meeting held May 13, 2013 the Commission addressed the IVCA application and reached a decision to hold a hearing on the question put before it by IVCA. This decision is consistent with Part XV Marketing New or Additional Regulated Product by Existing Agencies - of the General Order. Further, as provided for in section 3 of the referenced portion of the General Order the Commission determined that the hearing be held by way of written submissions. 9. On May 14, 2013 the Commission issued a Notice of Hearing to IVCA, all Vancouver Island greenhouse vegetable producers, Fraser Valley organic greenhouse vegetable producers and all designated agencies of the Commission. The Notice of Hearing set out the administrative procedures to be followed by the Commission for conducting the hearing by way of written submissions. 10. The administrative procedures included deadlines for IVCA to provide information to the Commission that would be circulated to those parties granted standing in the hearing as Interveners. Also, the Notice of Hearing provided information about how interested parties may be granted standing in the hearing as an Intervener. 11. On May 21, 2013 the Commission received an in-time written submission from IVCA. This submission provided other information in support of IVCA s application first received by the Commission on April 23, Two in-time requests for being granted standing in the hearing as Interveners were received by the Commission on May 21, The requests were received from V. I. P. Produce Ltd. (VIP) and Vancouver Island Farm Products Inc. (VIFP). Both entities are licensed Commission designated agencies having interim authority to market storage and greenhouse vegetables. 13. On May 23, 2013 the Commission issued correspondence to VIP and VIFP informing that it granted Intervener status and accompanying the letter was the May 21, 2013 IVCA written submission. 14. By way of May 23, 2013 Commission correspondence IVCA was informed of the Commission decision to grant Intervener status to VIP and VIFP. 15. On May 27, 2013 the Commission received in-time written submissions from the Interveners. 2

3 16. On May 28, 2013 the Commission directed correspondence to IVCA serving to transmit the Interveners written submissions. 17. On May 29, 2013 ICVA provided its written response to the Interveners written submissions. Hearing 18. In session as a Panel of the Commission and convened by way of telephone conference on May 30, 2013 the written submissions received from IVCA, VIP and VIFP were reviewed. In addition to reviewing the mentioned written submissions Commission staff prepared information regarding IVCA agency performance and greenhouse vegetable production and marketing on Vancouver Island was reviewed. 19. In its written submission IVCA provided reasons why it should be granted authority to market greenhouse vegetables in addition to its current authority to market storage crops. The reasons are: a. With its current authority to market storage crops the addition of organic bell pepper production (a regulated product) originating from an established IVCA affiliated grower to what IVCA now markets in the way of both regulated and non-regulated vegetables is not expected to present marketing challenges; b. IVCA has a long and successful history of stability and the growers affiliated with it work with one another in a collaborative and co-operative manner; c. IVCA in the past did market greenhouse tomatoes and greenhouse grown butter lettuce and it does not foresee difficulty in marketing the organic bell peppers to existing customers; and d. It is practicable for Vantreight Farms, which is an established storage crop grower now marketing storage crops through IVCA, to market organic bell pepper production through it as opposed to this grower having to market them through another agency. 20. The VIP written submission served to inform the Panel of the Commission that it was in support of IVCA being granted authority as a designated agency for the unrestricted marketing of all greenhouse vegetables. The VIP submission provided reasons for its support. These were: a. Regarding the decision it is to reach the Commission must take into consideration the January 7, 2013 BC Farm Industry Review Board Supervisory Review decision; b. In the public interest of expanding the agricultural industry on Vancouver Island it would be beneficial to have an agency that can represent growers with the security that comes with having an agency license without limitation and the grower does not face timelines set out in the above referenced FIRB decision; and c. IVCA is an agency in good standing with the Commission and as a current storage crop grower now marketing through it wishes to expand into the greenhouse vegetable industry it is more practical for the grower to market both types of regulated crops through one designated agency; 21. The VIFP written submission served to inform the Commission that it had concerns about the Commission approving an agency that now has authority to market storage crops solely with 3

4 additional authority to market greenhouse vegetables. The VIFP submission cited reasons for its concerns. These were: a. VIFP currently and ably functions as an agency with interim authority to market both storage crops and all greenhouse vegetable crops for growers located on Vancouver Island; and b. As there are few greenhouse vegetable growers in a small geographical area the addition of another marketing agency may result in fragmenting the present day collection of growers; c. For achieving future, sustainable growth coordination by one designated agency with authority to market greenhouse vegetables is preferred; and d. The presence of another Vancouver Island agency with authority to market greenhouse vegetables may lead to competition among agencies for customers and because the cost of shipping surplus supply off Vancouver Island is unremunerative it overhangs the Vancouver Island market until the market clears and a re-calibrated supply -demand equilibrium is attained. Commission Findings and Reasons 22. As shown by Commission registered producer records growers tend to produce for marketing either greenhouse vegetable crops solely or storage crops solely. Also, Commission records show that the production of regulated processing vegetables by storage crop producers is not unique whereas I. Vantreight s situation of producing for marketing both storage and greenhouse vegetable crops is so. In fact, Vantreight Farms is the only licensed producer growing regulated storage and greenhouse vegetable crops. 23. Elements of the January 7, 2013 BC Farm Industry Review Board Supervisory Review decision, in particularly the December 31, 2013 deadline when interim agency status for VIP and VIFP is to end, bear upon time frame elements of any Commission decision. Accordingly, the Commission holds that it is unable to render a decision affecting Vancouver Island designated agencies where it extends certain authorities beyond December 31, The Commission finds that the IVCA application is consistent with Part XV General Order provisions; presents a practicable, one agency marketing platform for storage and organic bell peppers (a regulated crop) produced by Vantreight Farms; and the marketing of organic bell peppers will involve existing IVCA customers and not result in an undue competitive situation arising among other greenhouse vegetable designated agencies or other organic greenhouse vegetable producers licensed as producer-shippers. 25. The Commission finds that VIP is supportive of the IVCA request; however, the Commission differs with VIP regarding the degree of authority to be granted to IVCA. When taking into consideration the FIRB Supervisory Review elements the Commission finds that the addition of authority for IVCA to market greenhouse vegetables be limited to bell peppers; that this authority is to have effect June 1, 2013; and it is interim in nature ending 24:00 hours December 31,

5 26. The VMC acknowledges the VIFP representation and the concerns it voiced ; however, the Commission finds that causing I. Vantreight to market organic bell peppers through an agency other than IVCA is not practicable; it is not in the producer s best interest to be put into a potential situation where finding another designated agency for marketing organic bell peppers may arise subject to a pending FIRB decision pertaining to Vancouver Island designated agencies, which is the subject of a FIRB Supervisory Review; and the occurrence of undue competition among designated agencies and in particular Vancouver Island designated agencies is not expected because organic bell peppers are differentiated compared to those that are conventionally grown on Vancouver Island and some of which are marketed through VIFP. Commission Decision 27. In accordance with the General Order, and in particular Part XV Marketing New or Additional Regulated Product by Existing Agencies- the Commission reached a decision regarding the IVCA request. The Commission decision is to grant conditional marketing authority with those conditions listed below: a. Interim authority is granted for the marketing of greenhouse bell peppers only; it is to have effect June 1, 2013; and in respect of the January 7, 2013 FIRB Supervisory Review decision BC Vegetable Marketing Commission and Central Vancouver Island Agency Designations and what may ensue from subsequent FIRB decision(s) pertaining to central Vancouver Island agency designations, interim marketing authority is to end December 31, 2013; b. During the June 1 December 31, 2013 time period IVCA is limited to marketing the greenhouse bell peppers produced for marketing by Ian Vantreight, a heretofore licensed storage crop producer doing business as Vantreight Farms, who has long marketed regulated products (storage crops) through IVCA; c. Whether occurring prior to or after December 31, 2013 if approached by a prospective or an established licensed greenhouse vegetable producer having the interest to market greenhouse vegetables through IVCA the Commission is to be immediately informed of such an enquiry and IVCA is not to enter into any agreements or arrangements with said person for the marketing of any of the regulated greenhouse vegetables until the VMC provides prior approval; d. On receiving from IVCA a written request that it be granted Commission authority to market all regulated greenhouse vegetable crops at a time after the Commission is in receipt of a FIRB decision regarding central Vancouver Island agency designations a Commission decision may be reached about such a request without holding a Hearing pursuant to Part XV - Marketing New or Additional Regulated Product by Existing Agencies - of the General Order. e. As it now does for storage crops IVCA is expected to submit to the Commission timely and accurate sales and production data for greenhouse bell peppers marketed by it, and, as required to do so, IVCA is to timely remit to the Commission levies payable by the one licensed greenhouse vegetable producer marketing through it; and 5

6 f. IVCA is to satisfy all agency responsibilities and reporting requirements set out in the General Order and at all times it is to remain in compliance with the Commission General Order and any directives issued to it by the Commission. 28. A Commission decision without written reasons was issued May 31, Issued this 20th day of June 2013 at Surrey, British Columbia David Taylor, Chair BRITISH COLUMBIA VEGETABLE MARKETING COMMISSION 6