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CFFO: Free Market for Ontario Processing Vegetables?

By Suzanne Armstrong

August 19, 2016

In the midst of this summer heat, many of us are enjoying the crops of sweet corn, tomatoes and

cucumbers that our local farmers are harvesting and selling. In Ontario, producers also grow

these vegetables along with beans, carrots, cauliflower, beets, and others for processing, so that

we can enjoy tomato sauce, relish and pickles, and many other delicious processed foods. The

Ontario Processing Vegetable Growers (OPVG) marketing board has been representing these

growers for around 70 years in Ontario. They negotiate prices with processors on behalf of

growers, and are authorized to regulate production as well.

Listen here:

[audio mp3="http://blackburnnews.com/wp-content/uploads/2016/08/CFFO-Aug19-Suzanne.mp3"][/audio]

 

On June 28 th , the Ontario government posted a regulation amendment proposal to Regulation

440, which governs the OPVG board and its authority relating to 14 vegetable varieties for

processing. In it, they proposed removing the negotiating powers of OPVG, and “moving to a free

market system.”

The proposed changes are concerning for two reasons. First, the consultation process itself is

short (45 days), poorly timed in the busy harvest season, and has given producers limited

information about the proposed changes and the reasons behind them. This leaves producers

anxious about the details and implications of how a new free market system would operate in

Ontario.

Second, the proposal seeks to remove negotiating power from the OPVG marketing board which

has been working effectively on behalf of producers. Ontario processing vegetable farmers have

enjoyed the stability of the marketing regulation, where they are confident to invest in their farm

businesses, and have predictable, fairly negotiated prices.

Vegetable farmers depend on vibrant food processing businesses, especially those within

Ontario, in order for their own businesses to thrive. Because of this, farmers recognize the

importance of maintaining competitive pricing within a global market, as well as the importance of

providing quality products which keep up to the specific needs of the processors. At the same

time, farmers are marketing highly perishable crops, in a market that has a limited number of

purchasers. Marketing boards such as OPVG are an effective means to balance these concerns

for farmers.

Al Mussell from Agri-Food Economic Systems argues that the relatively stable contracted

acreage and minimal number of formal disputes indicate that the OPVG marketing board has

been working effectively on behalf of farmers. The strongest evidence is the support of the

producers themselves, who see the OPVG as working both for their interests, and for the benefit

of the industry as a whole. A free market system is unlikely to effectively balance the power of

processors with that of farmers. We hope the government will recognize the benefits for all

involved of a managed marketing system for these crops.

______________________________________________________________________________________

Paul Bootsma is the Field Service Manager for the Christian Farmers Federation of Ontario. The

CFFO Commentary represents the opinions of the writer and does not necessarily represent

CFFO policy. The CFFO Commentary is heard weekly on CFCO Chatham, CKNX Wingham, and

UCB Canada radio stations in Chatham, Belleville, Bancroft, Brockville and Kingston. It is also

archived on the CFFO website: www.christianfarmers.org. CFFO is supported by 4,000 family

farmers across Ontario.

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