Vote set on ARPA proposal
National apple agency aimed at reversing decline in share of domesticmarket.
By Scott Trudeau F
ollowing three years of discussions, growers will be voting on the formation of a national Apple Research and Promotion Agency.
The issue was discussed during a special meeting of the B.C. Fruit Growers’ Association held Nov. 4. The deadline is Feb. 15 for completion of a vote on the proposal, which would see a levy of $0.002 per pound for B.C. apple growers for a five-year term.
Ontario, Quebec and New Brunswick currently have provincial apple research and promotion levies, while B.C. and Nova Scotia do not. The vote on a national agency is in response to an apple industry which has been on the decline, with Canada’s share of the domestic market dropping to 65 per cent from 80 per cent during the past decade. Those who favour formation of an agency believe it would help address that trend because it would increase the amount of money available to support the industry.
The levy would be collected at the first point of sale or remitted by growers shipping directly. Funds would be used for post- harvest and horticultural research, quality audits at retail, generic and organic production, processing and value-added research and administrative purposes.
“We are leaving lots of dollars on the table,” said BCFGA president Jeet Dukhia, noting that in order to address the marketplace decline, the association needs to explore ways to promote B.C.’s apple industry as part of a national strategy.
Dukhia estimated that as a result of the levy growers in the Okanagan, Similkameen and Creston valleys would all benefit because nearly $200,000 would be collected annually. However, the possibility of matching government grants could
12 British Columbia FRUIT GROWER • Winter 2013-14
double the amount of money available for promotional purposes. The levy would be remitted on a predetermined, regular basis with ARPA conducting spot audits to ensure proper reporting and remittance of the levies. Non- compliance provisions include court orders, inspections and fines, under B.C. Farming and Fishing Industries Development Act.
The agency would operate nationally with regionally-run administration of the program. Projects would be managed by the BCFGA, B.C. Tree Fruits Co-op and other industry groups.
In order to form a national apple agency, all the country’s apple- growing provinces must agree. If the agency is established the same levy would be administered across the country.
Some growers have expressed concerns about how the funds would be administered and whether B.C. apple growers would be served better. Glen Lucas, general manager of the BCFGA, said growers, producers and importers would determine promotion of the program. Lucas noted that typically these groups are supporters of the Canadian market.
He said that with improved and innovative promotions, apple consumption should increase and
provide stability for the industry. In the cattle industry, the application of a national levy by the Canadian Beef Cattle Research, Market Development and Promotion Council generates $8.2 million annually for marketing and research projects and to engage funding partnerships. An evaluation of the program from 2010 states on average between 2005-2008, every ‘check-off’ dollar invested in marketing and research activities earned $9 for Canadian cattle producers. Research delivered an estimated return of $46 and marketing delivered returns of $7.55 in producer benefits for every check-off dollar.
A national apple agency will address many concerns for a struggling industry, including funds to support development, expanded domestic market demand due to increased promotion, increased profitability resulting from more efficient production, cost reduction due to innovation, reduced spoilage resulting from research and provide an active partner for government engagement and investment.
A vote registry of apple growers is being developed.
To pass, the proposal to establish ARPA needs support from 65 per cent of the growers and have a minimum of 40 per cent of growers voting.
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