2016 Quota Assessment Tools Evaluation Project

The purpose of the project is to carry out an evaluation of the outcomes of specific 2005 Specialty Review transfer assessment and industry entry related directions, as they pertain to their continued effectiveness, utility and appropriateness.

Evaluation Process and Timelines

BCFIRB launched the Quota Assessment Tools Evaluation Project (PDF) on November 22, 2016. The process for the QATE Project is founded on the six SAFETI principles: Strategic, Accountable, Fair, Effective, Transparent, and Inclusive.

The project is divided into three phases:

Phase 1: Establishment of the evaluation framework, information requirements, and submission timeline (completed)

An introductory workshop was held with the five supply-managed boards and BCFIRB on February 3, 2017. The goal of the workshop was to discuss proposed areas of focus for the QATE Project and consider evaluation questions, data requirements, process, and timelines.

Phase 2: Commodity board analysis, consultation, and submissions to BCFIRB (February – June 2017) (completed)

During this phase, commodity boards consulted with stakeholders. Please contact the individual commodity boards for more information on their analysis and consultation processes:

Phase 3: BCFIRB analysis and decision-making (July – December 2017) (underway)

Commodity boards submitted final submissions to BCFIRB:

Upon receipt of the commodity board submissions, BCFIRB arranged meetings with the boards. At these meetings, the commodity boards had the opportunity to present their submissions to BCFIRB and answer questions.

Follow-up correspondence:

Additional QATE correspondence received by BCFIRB:

Once BCFIRB has assessed the submissions and any other related information, it will determine what, if any, further process is required to support sound marketing policy outcomes. The February 28, 2017 Expectations Letter (see Phase 1 above) sets out the details of what BCFIRB will be looking for in its evaluation of any proposed changes to transfer assessment and industry entry related policies and directions.

It is currently anticipated that BCFIRB will make any decisions, as it deems necessary, by December 2017. However, the evaluation process timeline is subject to change and this webpage will be updated as required.

Background and Purpose

The Quota Assessment Tools Evaluation focuses on two areas:

  • Quota transfer assessment structure: Evaluate whether, and to what extent, the current structure of transfer assessments is impacting the movement of quota between producers.
  • Industry entry: Evaluate whether, and to what extent, the current programs and tools used to reduce quota-related barriers to entry continue to support industry entry by new farmers (i.e. people new to the industry and are not part of farm succession planning). This includes an evaluation of whether, and to what extent, existing transfer assessment exemptions continue to serve their intended purposes.

The evaluation takes into account key 2005 transfer assessment and industry entry related policy objectives:

  1. Quota is intended to be produced.
  2. Quota is transferable.
  3. Producers are actively engaged and committed to the industry.
  4. Quota is available to commodity boards to support policy objectives, including development of specialty markets and providing for new entrants in the supply management system.

The QATE Project involves BCFIRB and the five supply-managed boards:

  • BC Broiler Hatching Egg Commission (BHEC)
  • BC Chicken Marketing Board (CMB)
  • BC Egg Marketing Board (EMB)
  • BC Milk Marketing Board (MMB)
  • BC Turkey Marketing Board (TMB)

History and Rationale

The 2005 Specialty Review’s primary goals were to develop policies and principles to support and promote specialty markets and new entrants in the supply-management system, consistent with the Ministry of Agriculture’s July 2004 Regulated Marketing Economic Policy (PDF).

The 2005 Review was conducted in consultation with the five supply-managed commodity boards, industry stakeholders, and the Ministry of Agriculture. As a result of the review, BCFIRB identified overarching quota-management principles and gave specific transfer assessment directions to the commodity boards.

Since the 2005 Specialty Review, production under the supply-management system has changed considerably for producers and their value-chain partners (e.g. processors and retailers). Some commodities have seen significant growth in production and diversification, including dairy, eggs, and chicken (and by extension, hatching eggs). Other commodities face a more challenging market environment, such as turkey. Retail and processor consolidation continues not only provincially, but also nationally and globally, with associated pressures on market share. Public demands are also shifting rapidly—there is increased interest in how food is produced and where it comes from.

Since 2005, commodity boards have proposed changes to BCFIRB’s quota transfer assessment directions. BCFIRB approved some of the requested changes. Certain of these changes apply across all commodities (e.g. establishment of family transfer assessment exemptions), while others only apply to one commodity (e.g. extension of transfer assessment exemptions to nieces, nephews, and grandchildren in dairy).

On July 8, 2014, the five supply-managed commodity boards had an opportunity to provide recommendations to BCFIRB on amendments to quota transfer directions arising out of the 2005 Specialty Review—see the 2014 Quota Transfer Assessments Evaluation. However, on November 22, 2016, BCFIRB chose to undertake a more focused review and launched the QATE Project.