2016 Organic Council of Ontario Annual General Meeting

Turning Over a New Leaf

Agenda9:00: Arrival and Registration 9:30: Welcome from OCO’s President and Chair, Tom Manley 9:45: Presentation of Highlights on Check Off Work, Carolyn Young 10:00: Presentation by Marni Karlin, VP of Government Relations, OTA 11:00: Questions and Small Group Discussion 11:45: Lunch and Networking 12:45: Updates on the Organic Standards, Board Director Ted Zettel 1:15: Updates/Discussion on Ontario Organic Regulation 1:40: Small Group Discussions on Ontario Organic Regulations 2:00: Break 2:15: Business Portion of AGM 4:15: Closing Remarks by Chair, Members Dismissed 4:30: Brief Meeting of New Board

Welcome from the Chair• Welcome

• Important changes over the past year

• Why organics are more important than ever

• Looking forward

• Priorities for the Year

Thank You to our Sponsors

Check Off Research• Research into Ontario’s Conventional Fee System

• Research into other Jurisdictions: Que, Prairies, US

• Piloting a Voluntary Production Contribution Program

• Meetings with Minister’s Office and OMAFRA

• Exploring Feasibility for Provincial/National system

Regulations Governing Marketing Levies

Organiza(onType RegulatoryFramework KeyCharacteris(cs

GeneralFarmOrganiza.ons

FarmRegistra.onandFarmOrganiza.onsFundingAct,1993

• Purposetorepresentalltypesofcrops/livestocketc.

• Min.250registeredfarmbusinesses• Min.12localbrancheswithmin.10

Marke.ngBoardsFarmProductsMarke.ngAct;MilkAct

• authoritytoregulatetoftherelevantfarmproductincludingse<ngfeeorlevy.

Sec.on12Associa.onsFarmProductsMarke.ngAct

• Thefarmproductsmarke.ngcommissionmaintainsauthori.es

• Thecommissioncancreateregula.onstomandatelevies,

OntarioFruitandVegetableGrowersAssocia.on

FarmProductsContainersAct

• Containershardtoregulate/licenseandpooloffundingshrinkingasretailersmakeowncontainers.

Na.onalboardsoragencies

AgriculturalProductsMarke.ngAct

• Provincial board must exist first

Marketing Board/Association Levy Contributions from the Organic Sector

Dol

lars

Con

tribu

ted

to C

omm

odity

O

rgan

izat

ions

0

200000

400000

600000

800000

Grain Fruit Beef Pork Dairy Poultry Eggs Turkeys

$1,132,250 annually (excluding OFVGA container fees)

7

Case Study: Quebec• Organic Surcharge: CAEQ is a non-profit

accreditor that collects a surcharge through certification bodies for maintaining organic standards

• Organic Grain Additional Check Off: Organic grain syndicate put for a resolution in 2014 to the Grain Farmers of Quebec to create an additional organic levy: 0.50/mT. They chose the amount based on the sector’s needs

Case Study: Prairie Organic Development Fund

• Prairie Organic Commission—Gentleman’s Agreement: Prairie Organic Development Fund started as a voluntary production contribution approach, but biggest investors were large buyers; so large that a check off was too expensive, needed a cap.

• Prairie Organic Development Fund: Similar to COTA’s membership model, split between three provinces, shared resources

• Federal Non-Profit: $14,000 to incorporate, legal time donated, administered by SOD

Study: PODnd

Case Study: GRO Organic

What’s Happening in Ontario?

1. Approached Commodity Boards to transfer Funds: • In 2011, OCO approached commodity boards • Met with Pork, the OFVGA, the Egg Board, the DFO,

the OFA, the Ontario Grain Farmers, staff from the Beef Farmers of Ontario, met the Apple Growers of Ontario

• In general, the boards saw no benefit to them, and felt they were serving their members

• Boards suggested they would be further moved if there was a strong push from their members and/or outside forces.

2. Voluntary Production Contribution Developed

Sector Leader:Homestead Organics

• Charges $0.50/MT to producers based on Quebec fees and $1.00/MT to interested customers

• Timeline for implementation: 1-2 years, need to implement charges through purchasing agreements

• Communication of Changes: Announcement in newsletter

• # of Producers: 45

• # of Customers: 5

• Total in 2014: $1,302.17

• Total in 2015: $7,164.90

14

Other Experiences• Canadian vendors: 0.05% of purchase

order, Pfenning’s to match 0.05%

• Pfenning’s farmed produce: Pfenning’s pays 0.1%

• Customers: 0.1% of invoices

• Originally their producer-suppliers responded positively, customers negatively and they were reluctant to implement fee to just producers.

• Trial implementation with 2 customers in February enabled accounting kinks to be smoothed out; Full implementation for March 2016

• Despite initial reactions to this date there is no one who’s opted out, if that happens Pfenning’s will contribute on their behalf

15

Options for OntarioCon.nuewithVoluntaryProduc.onContribu.onProgramPassMarke.ngBoardResolu.onsCer.fica.onBodiesCollectOrganicSurchargeAdvocateforanOrganicProductsExemp.onApplyforOrganicSectorMarke.ngBoardApplyforanOrganicSectorsec.on12Associa.onApplyforGeneralFarmOrganiza.onStatusApplyforSeparateOrganicMarke.ngBoards/Associa.onsAdvocateforLegisla.veChangeCreatePar.alExemp.onNa.onalCommodityBoard/Promo.onsandResearchAgency

16

Marni KarlinKarlin graduated from The George Washington University with honors in 1998 with a B.A. in International Economics and Politics. In 2001, she received her J.D. degree with honors from the University of Chicago Law School, and subsequently was admitted to the New York Bar. She has served 11 years in private and government legal practice, developing substantial writing, oral communication, research and analytical skills.  Besides her professional skills she has a passion for sustainable and organic food, and received a Culinary Arts diploma, with honors, in 2007 from Le Cordon Bleu in Paris, France. Since 2008, in her spare time, she has served as Policy Adviser and Market Manager for EcoFriendly Foods, a local sustainable meat producer and processor in Moneta, VA, to formulate its policy goals and congressional testimony.

Questions for Marni?

18

Small Group Discussions• 15-20 Minutes to Discuss at Your Table

• Someone Takes Notes, Someone to Report

What aspects of GRO Organic do you like?

What aspects GRO Organic do you not like?

Which aspects are most relevant to the Ontario context? Which ones are not?

Lunch

20

Updates on the Organic Standards

Provincial Organic Regulation Research

• Committee formed in 2014-15

• Research compiled by Maureen Bostok

• Quebec, Manitoba, British Columbia and New Brunswick

• Options for Small Scale Farmers, Tony McQuail

• What Should Ontario do?

Do We Need It? • Consumer confusion about value of organics vs. natural or

local

• No piece of provincial legislation supporting organic means no programs or government infrastructure for organics

• National level enforcement is very weak

• Some reports of fraud at retail and some farmers’ markets

• Organic Products Act might allow for exemption from commodity boards for organic products

• Other provinces complaining about Ontario??

Ontario 2012 Statistics• 57% of farms making organic claims are certified organic

• 81% of businesses with annual sales over $1M are certified

• 82% of producers, 100% of handlers, 94% of processors and 88% of retailers are moving certified organic products they have sourced from elsewhere in the value chain

• Only 28% of those making organic claims are certified organic in a sector valued at $2.9M annually;

• Farmers’ Markets - 33% making organic claims, 10% certified organic (612 vendors from 52 markets, 166 markets in Ontario) $180M;

• On Farm Markets - 4% certified; $210M based on 135 farm stalls, 28% of which make organic claims, 5% of which are certified

Comparison of RegulationsQuebec British

Columbia Manitoba New Brunswick

In place prior to 2009 Fed

Regs2002 1993

Introduced following the

Fed Regs

Mandatory in 2015?

2007, enacted 2013, 2014

Title

Act Respecting Reserved

Designations and Value-

Added Claims

Organic Products

Certification Regulation

Organic Agricultural

Products Act

The New Brunswick

Organic Grade Regulation under the Natural

Products Act

Organic Logo Bio Quebec 2011

Organic Checkmark

Capable of instituting

Comparison of RegulationsQuebec British Columbia Manitoba New Brunswick

Internal Ministerial Function x

Integrated into the NB Farm Product

CommissionDedicated inspectors x

Enforcement CAEQ collects fees from certifiers and

COABC is appointed as Administrator in the act.

Producer certifying agencies are voting

members of COABC & monitors the use of the Organic Checkmark.

Fees collected.

Complaints-based. Three consultants on call and paid

for by government to

inspect.

The NB Farm Product Commission

is responsible for implementing,

administering and compliance of the NB Organic Grade

Regulation. Enforcement will be

carried out by NBDAAF

Enforcement Officers.

Collects fees to support administrative bodies x x

Subsidies for certification fees x x (suspended a couple of

years ago?) x xx

Small Scale Regulations1. OCPRO—Local Organic Certification

• 10 acres or less, considered low risk and don’t require annual inspection

• 4 producers certified in 2015, expecting 5-10 in 2016

• Will review the program in 2017

2. Foodland Organic Self-Declaration Registry

• No size limit, only for Direct Marketers (no retail)

• Must undertake training, understanding of standards and best practices for organic management

• Self-Declare and pay small fee ($100?)

• Listed on registry, access to Foodland Organic branding

Small Scale Rationale• Ontario has largest population of uncertified organic farmers and direct

marketers

• Many are operating on tiny margins, businesses are precarious

• As long as they sell directly to customers, they don’t require the branding—relationship built on trust

• Often consider practices to be “beyond organic”—ie. mixed farming

• Need something to get those producers in the system and able to scale up

• Not likely to certify if there is an Ontario organic regulation?

• Difficult to certify

Small Group Discussion• 15 Minutes to Discuss at Tables, 1 min report back

• Choose a Notetaker and Reporter

Do we need a Ontario Intra-Provincial Regulation?

What kind of regulation would you like to see in Ontario?

What kind of regulation would you NOT like to see in Ontario?

Break

30

Business Meeting• Only members may vote, 1 vote each

• Each member has a voter card

• Make motion, seconded, any discussion or questions, vote on motion, all opposed, abstentions

• Nominated candidates voted on by ballots, you have a ballot for your sector and can only vote on your sector

• Nominations for candidacy are still welcome

Business Meeting AgendaAgenda Purpose Who Time

1.CalltoOrder Tobegin Chair 2:15

2.ApprovalofAgenda Approval Chair 2:17

3.ApprovalofMinutesfrom2015AGM Approval Chair 2:20

4.Elec(onofBoardMembers BallotVote Chair

5.Reports Chair 2:30

a.Treasurer’sReport Informa.on Treasurer 2:50

b.Auditor’sReport Informa.on Treasurer 3:05

c.ChangingfromAudittoReview Approval Treasurer 3:35d.Ac.vi.esReport(StaffandBoard) Informa.on Staff 3:50

6.Elec(onResults DirectorsNamed

Chair 4:00

7.NewBusinessandMemberNews Informa.on Members 4:15

8.Adjournment Chair ToEnd 4:25

Board Nominations• Board members with remaining term: John Devlin, Treasurer

• Board members that are moving on: Hugh Martin, Ted Zettel, Jacob Pries

• Also thanks to those board members that ended their terms earlier this year

• Current Positions available: Producer, Processor, Distributor, Marketer, Retail, Association/NGO, three At- Large are appointed

• Nominations for candidacy are still welcome

Board NominationsSeeking Skills in:

• Fundraising

• Business Development

• Marketing and Brand Development

• Social media and Communications Strategy

• Media Relations

• Website and Membership Management Tools

• Knowledge of Organic Regulations and Certification

• Government Relations

• Non-profit Management and Governance

• Previous board experience

Business Meeting Agenda1.Elec(onofBoardMembers

a.ProducerNominees(1mineach) Introduc.ons Nominees 2:30

b.ProcessorNominees(1mineach) Introduc.ons Nominees 2:32

c.DistributorNominees(1mineach) Introduc.ons Nominees 2:34

d.MarketerNominees(1mineach) Introduc.ons Nominees 2:35

e.RetailNominees(1mineach) Introduc.ons Nominees 2:36

f.Cer.fierNominees(1mineach) Introduc.ons Nominees 2:38

g.NGO/Associa.onNominees(1min) Introduc.ons Nominees 2:40

h.AtLargeNominees(1mineach) Introduc.ons Nominees 2:42

i.Collec.onofVotesandProxyVotes Collected Staff 2:50

Treasurer’s Report

Auditor’s Report

Changing from Audit to Financial Review

Activities Report-Membership

• Number of Members: As we entered 2016, we had 145 members

• New Members: In the last few months we've had a 6% increase in new members

• Calendar Cycle: Moved to January renewal

• Change in the Member Fee Structure: Better categorization, based on annual sales

Activities Report-Membership

Producer

Direct to Consumer (Retail) / Distributor

Association / NGO

Consumer

Processor

Industry Consultant / Expert / Press

Wholesaler or Marketer

Certifier

Input Supplier

0 15 30 45 60

Activities Report-Policy

• Check Off Research: Discussion Paper, Working Group Meeting

• Pre-Budget Submission

• Meeting with Minister’s Office and Directors

• Research into Ontario Provincial Regulations

Activities Report-Fundraising

• Growing Forward 2 application: consult with sector on priorities and business plan

• Agricultural Management Institute

• Production Contribution Program: now 5 contributors

• Greenbelt Local Food Investment Fund: check off feasibility study

• Trillium Seed Grant: Further develop the Production Contribution Program and Ontario Regulation

Election Results

Announcements and Member News

Join us tonight at Artisanale for Dinner Next Year’s AGM: April 6th