Asian hatching egg production regulation (2017)

In 2016, several specialty producers appealed BCBHEC’s decision to implement a “Regularization Program.” This program limited quota for Silkie and Taiwanese chicken breeders. Appellants argued it was arbitrary, unfair and harmful to their small businesses.

BCFIRB agreed with the producers. In a decision issued on March 29, 2016, BCFIRB found that BCBHEC had not used a transparent or inclusive process.

BCFIRB ordered BCBHEC to:

• Rescind the specialty producer regulations
• Enforce only basic safeguards (biosecurity, food safety, and premises ID)
• Consult producers and create a fair, transparent process to decide what level of regulation was appropriate for the sector

While BCBHEC worked on the new process, a second round of appeals was filed. BCFIRB dismissed them on August 16, 2016, because the process was still underway.

• Appeal decision: Skye Hi Farms Inc. & Casey Van Ginkel — March 29, 2016 (PDF, 452KB)
• Appeal dismissal: W. Friesen, Skye Hi Farms Inc., C. Van Ginkel, Coastline & Bradner Farms – August 16, 2016 (PDF, 236KB)

On August 19, 2016, BCBHEC asked BCFIRB to approve a new proposal. The proposal would exclude Asian specialty producers from broader regulation, keeping only basic requirements like biosecurity, food safety and premises identification.

• BCBHEC’s request for prior approval for the Exclusion Permit Program of Asian breeder producers — August 19, 2016 (PDF, 5.0MB)

On September 15, 2016, BCFIRB informed BCBHEC that it had formed a supervisory panel to evaluate the exemption request. This marked the start of a structured, multi-phase review process to:

• Assess the broader implications of exempting specialty producers
• Ensure compliance with applicable legislation and marketing policy
• Provide a fair, inclusive framework for evaluating how regulation should apply to niche producers within the broader supply-managed system

Around the same time, several producers filed appeals challenging BCBHEC’s proposal. Rather than proceed with multiple overlapping appeals, BCFIRB deferred all related appeals until the supervisory review was complete.

• BCFIRB notice establishing supervisory panel — September 15, 2016 (PDF, 230KB)
• BCFIRB decision to defer BCBHEC appeals — September 16, 2016 (PDF, 191KB)

In B.C., BCBHEC regulates the production and marketing of broiler hatching eggs under the Natural Products Marketing (BC) Act (NPMA).

BCBHEC oversees registered producers, including:

• Broiler breeder producers who raise breeding flocks and produce fertile hatching eggs
• Pullet growers who raise young hens before they start laying

At the national level, broiler hatching eggs are part of Canada’s supply management system, which balances production with demand to maintain price stability.

BCBHEC does not directly regulate hatcheries, which play an important role in the supply chain by incubating eggs and hatching chicks. Instead, BCBHEC manages hatchery supply indirectly by controlling how many hatching eggs producers can sell to chicken producers. BCBHEC is also responsible for setting the price of chicks, which is the price hatcheries receive for chicks from chicken producers.

BCBHEC is responsible for:

• Licensing producers
• Setting production levels through quota
• Coordinating with hatcheries on egg supply
• Enforcing standards for animal health and biosecurity

Asian specialty producers raise non-standard breeds like Silkie or Taiwanese chickens for niche markets. They operate at a smaller scale and serve different buyers. These differences raised questions about whether the same regulatory framework should apply to them as it does to mainstream chicken producers.

BCFIRB began a supervisory review to examine the issue in full. A supervisory panel was formed to oversee the process. Before ruling on BCBHEC’s request, BCBHEC needed to complete a BCFIRB-approved process to address outstanding procedural and informational gaps.

The process was unexpectedly paused in January when BCBHEC’s chair resigned. After a new chair was appointed, the review resumed with BCBHEC’s revised work plan.

This phase focused on engaging producers and gathering baseline information about the sector. BCBHEC launched a consultation process by distributing questions to producers. They were asked to provide feedback on current practices, challenges and the appropriate level of oversight for Asian specialty hatching egg production.

BCBHEC reviewed the responses alongside existing industry data. They submitted a background report to BCFIRB, summarizing input and emerging themes. Based on the feedback, BCBHEC added an interest holder meeting and extended deadlines to allow further discussion before developing regulatory options.

BCBHEC prepared a draft discussion paper that outlined different options for regulating Asian specialty hatching egg production. The paper was shared with BCFIRB and interest holders.

To support the process, BCBHEC held in-person meetings with interest holders and BCFIRB to discuss the pros and cons of each option. They invited interest holders to submit written responses. Based on the input, BCBHEC identified unresolved issues and followed up with questions.

During this time, BCBHEC also asked BCFIRB to revise the original work plan to reflect new insights gained during consultation. BCFIRB approved the updated schedule.

BCBHEC submitted its final recommendations to BCFIRB in June 2017, along with two supporting appendices. The recommendations proposed a regulatory framework based on feedback gathered during consultations. Two interest holder groups with deferred appeals objected to BCBHEC’s recommendations, and requested that BCFIRB hear their submissions directly before making a final decision.

BCFIRB identified information gaps in the recommendation, and issued follow-up questions. It also approved an extension to allow BCBHEC and interest holders to respond. Both BCBHEC and producers provided additional submissions in September and October 2017. BCBHEC’s final reply was submitted on October 20, 2017 completing the information-gathering phase.

After reviewing all submissions, BCFIRB met with BCBHEC on May 31, 2018 to clarify outstanding questions about its recommendations.

Legal representatives for several producers submitted a joint response, raising concerns about regulatory gaps and the treatment of specialty producers. BCFIRB reviewed these submissions before issuing its decision.

On July 17, 2018, BCFIRB issued its final decision. On August 27, it issued a corrigendum to correct minor errors. In early 2019, BCFIRB confirmed that BCBHEC’s interim actions aligned with the decision.