MAY 2019 • COUNTRY LIFE IN BC


FIRB decision prompts rethink


of pricing scheme Vegetable commission undertakes strategic planning process


by PETER MITHAM DELTA – “Strengthening” is a


word that’s been on Debbie Etsell’s mind a lot in her first year as chair of the BC Vegetable Marketing Commission.


Stepping into the role after helping take BC blueberries to the world, Etsell kept busy meeting with producer groups, liaising with the Canadian Horticultural Council and engaging with the BC Farm Industry Review Board regarding the appeal of an order and decision the commission issued against Prokam Enterprises Ltd. and Thomas Fresh Inc. in 2017. The commission’s board


also participated in a session on governance, designed to hone its principle-based decision-making abilities as an organization charged with managing an industry overseeing the orderly marketing of $318 million worth of produce last year. Preparations for a strategic planning process to guide the commission’s future work took place, too, culminating in the selection of Dawn Glyckherr, principal of DM2 Consulting Inc. in Vancouver, to undertake the process. “It’s been a busy year, and definitely the word ‘strengthening’ has run


through my mind many times,” Etsell told the commission’s annual general meeting in Tsawwassen on April 8. A focal point of the


commission in 2018 and again this year is the appeal in the Prokam/Thomas Fresh matter. The appeal process helped the commission rack up $130,000 in legal fees last year, a notable expense and drain on what commission auditor associate Jim Melville called “very consistent year over year” revenue. FIRB delivered its decision February 28. The decision included five


orders to the commission, with key issues being the commission’s use of minimum pricing to ensure an orderly marketing environment for regulated crops as well as ensuring commission decisions are free from bias not only in fact but also appearance.


The commission’s


enforcement of minimum pricing was the key point discussed at the AGM, and will be a focus of the commission’s 2019 work plan. “It has some implications


on how we’ve historically managed the storage crop industry,” general manager Andre Solymosi said. The three key tools the commission relies on to ensure the orderly marketing


of regulated vegetables are marketing agencies, delivery allocations and minimum pricing. “Our reliance on minimum price has been key here, and how we have conducted that needs to change a little bit,” he said.


Based on the federal


Agricultural Products Marketing Act, the commission contended that it had authority to enforce a minimum pricing on BC produce sold outside of BC – in this case, potatoes sold to buyers in Calgary and Saskatoon. FIRB didn’t buy that argument. “In our view, for the


Commission to apply minimum pricing rules to the transactions at issue here would exceed the authority granted to the Commission,” reads the decision, written by Al Sakalauskas and Diane Pastoor. “There is no compelling reason to stretch the interpretation of the provincial regime to find for the Commission authority to regulate minimum prices for product sold outside BC on the basis that such authority would be an integral part of


an overall effective regime for management within BC.” Solymosi said the BCVMC is exploring options for implementing FIRB’s orders. “We’re working on that,” he


said. “In the meantime, we have to find out how to maintain orderly marketing without relying so much on minimum price.”


The commission is also


undertaking a public accountability and reporting initiative which will implement standards of operations for marketing agencies. The standard will assess performance against established measures of accountability.


The accountability initiative complements introduction of a new licence category for packinghouses as well as the review and implementation of a new strategic plan. “This is something we will


use as we move towards orderly marketing and strengthening the industry,” Glyckherr told commission members. “I’ve read through your current strategic plan, and we’ve got a lot of room for improvement.”


BC Vegetable Marketing Commission chair


Debbie Etsell. FILE PHOTO


She outlined work accomplished on the plan since she began working for the commission in mid-March. She hopes to consult at least 65% of the growers, packers and wholesalers in the sector in order to chart a path forward. Among the key challenges facing the sector are competition from imports, reduced processing capacity as well as difficulties accessing affordable land and labour. The commission is also championing food safety, an issue on everyone’s minds in light of recent incidents involving salmonella and E. coli contamination of produce. Glyckherr expects to deliver


a preliminary report by mid- July, with a final version ready by fall.


The work is welcomed by


Etsell, who said FIRB’s decision has given the commission an opportunity to strengthen its operations and practices for the benefit of the vegetable sector as a whole. “Orderly marketing will


remain intact and come out stronger because of it,” she said.


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