Amendments to Schedule “B” Operating Agreement

In 2016, the B.C. Farm Industry Review Board (BCFIRB) reviewed proposed changes to the Schedule “B” Operating Agreement, which governs how chicken production is allocated across Canada. The review focused on whether the revised agreement:

Aligned with British Columbia’s regulatory framework
Supported national cohesion
Upheld principles of sound marketing policy

What was decided

On June 30, 2016, BCFIRB approved the B.C. Chicken Marketing Board’s (BCCMB) request to sign the amended Schedule “B” Operating Agreement. The revised Schedule “B” changed how growth shares were distributed nationally, including increased allocations for Alberta and Ontario.

BCFIRB also directed that BCCMB:

Publicly report annually on agreement performance measures and outcomes, using performance measures developed with interest holder input
Ensure those performance measures are used in the annual Chicken Farmers of Canada (CFC) reviews under section 10.1 of the agreement

Schedule “B” Chicken Operating Agreement Signatory Decision — June 30, 2016 (PDF, 370KB)

Why BCFIRB conducted this review

In 2016, BCCMB asked BCFIRB to approve proposed changes to the Federal-Provincial Operating Agreement (Schedule “B”). This agreement outlines how chicken production is allocated across provinces under Canada’s supply management system.

Because BCFIRB is both a signatory to the agreement and the provincial oversight body, the Natural Products Marketing (BC) Act (NPMA) required it to conduct an independent review.

This review assessed whether the proposed amendments:

Complied with the B.C. Chicken Marketing Scheme
Reflected sound marketing policy
Supported the public interest
Met all legal and regulatory requirements

Events leading to the review

This review took place after almost a decade of escalating tension about how to allocate production growth among provinces and territories in Canada’s supply-managed chicken system.

Provinces held different views on what was fair. Some believed allocations should reflect population growth and market demand. Others supported continuing with the principle of comparative advantage, allocating growth based on how efficiently each province produces chicken. Key developments included:

Alberta

Alberta made repeated requests since 2007 for additional production based on its growing population. They argued that fast-growing provinces were disadvantaged by the existing model.

After years of unsuccessful negotiations, Alberta withdrew from the Operating Agreement, citing systemic inequity.

Ontario

Ontario also pushed for a model that better reflected demographic trends.

This added pressure to the national debate about how growth should be allocated

PPPABC appeal

An appeal filed by the Primary Poultry Processors Association of B.C. (PPPABC) with BCFIRB in 2014 challenged how BCCMB interpreted and applied national policies.

The appeal was put aside by agreement between PPPABC and BCMMB so that BCFIRB could address this matter in its supervisory capacity under the NPMA.

Timeline of the review process

The supervisory review of proposed amendments to the Schedule “B” Operating Agreement took place over several months in 2016. BCFIRB led a staged, principles-based process involving written submissions, affidavits, procedural rulings and a final decision.

January 2016: Review launched

January 15: BCCMB submitted its position on the proposed amendments
January 25: BCCMB submitted its SAFETI-based analysis
January 26: BCFIRB formally launched the supervisory review

February 2016: Review questions and early submissions

February 9: BCFIRB released its review schedule and formal questions that addressed:
- Whether the proposed changes, including increased growth shares for Ontario and Alberta, fit within the legal and policy frameworks
- Whether the changes would improve how provinces work together to make allocation decisions
- Whether the agreement could adapt to future pressures, such as international trade impacts from the Trans-Pacific Partnership
February 17 to 26: BCCMB, the PPPABC, and others submitted early responses and position documents

March 2016: Broader stakeholder input

March 18: Submissions received from Alberta Chicken Producers, CFC, Chicken Farmers of Saskatchewan, and the BC Chicken Growers’ Association
March 31: BCCMB submitted a two-part response to stakeholder feedback

April 2016: Process adjustments and second submissions

April 12: BCFIRB issued an update on next steps, confirming timelines for second submissions
April 27: BCCMB, PPPABC, and CFC submitted new evidence, affidavits, and supplemental documents

May 2016: Final submissions

May 6: BCFIRB requested clarifying information from parties
May 11: BCCMB, PPPABC, and CFC submitted final responses
May 20: PPPABC submitted a sworn version of an affidavit (originally submitted unsigned on May 11)

June 2016: Further submission and decision

June 9 to 15: PPPABC unsolicited final submission. CFC and CMB objected, but the panel accepted it and invited formal responses
June 24 to 28: CFC and BCCMB submitted responses; PPPABC provided a final reply
June 30: BCFIRB issued its final decision, approving the amended Schedule “B” Operating Agreement with conditions