In 2012, two agencies filed appeals over agency designation decisions made by the B.C. Vegetable Marketing Commission (BCVMC). Instead of resolving the appeals separately, the B.C. Farm Industry Review Board (BCFIRB) launched a broader supervisory review to address underlying governance issues, agency dysfunction, and long-standing tensions among Island growers.
What was decided
Initial decision
On January 7, 2013, the B.C. Farm Industry Review Board (BCFIRB) issued a decision granting interim agency designations to:
- V.I.P. Produce Ltd. (VIP)
- Vancouver Island Farm Products Inc. (VIFP)
Both agencies were authorized to market storage and greenhouse vegetables until December 31, 2013, under certain conditions. This interim approach was intended to stabilize the situation while a long-term governance solution could be developed.
BCVMC was directed to:
- Monitor both agencies under clear accountability standards
- Submit a plan outlining the future agency structure for the Island
- Explore regulatory amendments allowing non-commercial producers on the Commission
Decision cover letter — Central VI Agency Designations — Jan 2013 (PDF, 154KB)
Decision — Central VI Agency Designations — January 7, 2013 (PDF, 354KB)
Follow-up decision
On December 23, 2013, BCFIRB issued the decision:
- VIP’s designation was continued
- Approved the BCVMC’s recommendation that VIFP would operate as a sub-agency under BC Fresh Vegetables Inc. (BCFresh) following a joint proposal from the two businesses
- BCVMC was expected to improve oversight and report on agency performance
Decision cover letter — Central VI Agency Designation — December 2013 (PDF, 199KB)
Decision – Central VI Agency Designation — December 23, 2013 (PDF, 307KB)
Follow-up letter from December 23 2013 supervisory review decision — Jan 8, 2014 (PDF, 42KB)
Why BCFIRB conducted this review
BCFIRB initiated the review after VIP and VIFP each appealed a 2012 decision by the BCVMC that revoked VIP’s agency designation and approved a limited designation for VIFP.
BCFIRB exercised its supervisory authority under the Natural Products Marketing (BC) Act to examine systemic governance issues. The review focused on:
- Agency governance failures
- Lack of strategic planning and transparency in BCVMC decision-making
- Tensions between Island growers that impaired orderly marketing
Background on agency designation
In B.C., agencies are licensed by regulated marketing boards and commissions like BCVMC to market regulated products on behalf of producers. All agency designations require BCFIRB’s approval.
Agencies must:
- Follow the rules set by the BCVMC
- Operate transparently and cooperatively
- Align with the broader goals of the regulated marketing system
Agency designations are subject to periodic review and may be revoked if governance or performance falls short.
Documents and timeline
The supervisory review took place between 2012 and 2014, beginning with two overlapping appeals and ending with the approval of a new agency–sub-agency model for Vancouver Island.
Appeals referred to in the supervisory review (November 2012)
In April 2012, BCVMC revoked VIP’s agency designation and approved VIFP only as a greenhouse agency. Both organizations filed appeals with BCFIRB.
On November 21, 2012, the BCFIRB appeal panel referred the appeals to a supervisory review, citing systemic governance concerns and the need for a broader examination under section 8(8) of the Natural Products Marketing (BC) Act.
Interim designations and directions to BCVMC (January 2013)
On January 7, 2013, BCFIRB issued a supervisory decision granting interim agency status to both VIP and VIFP until December 31, 2013.
During this interim period, BCFIRB directed BCVMC to:
- Monitor agency performance with clear reporting requirements
- Prepare and submit a long-term strategic plan for agency structure on Vancouver Island
- Propose amendments to the BC Vegetable Scheme to allow non-producers to serve as Commission members
Sub-agency model proposed (July to October 2013)
Before final recommendations were submitted to BCFIRB by BCVMC, VIFP and BCFresh proposed a new structure where VIFP would operate as a sub-agency under BCFresh.
On July 29, BCFIRB issued a letter outlining expectations for BCVMC’s review. BCVMC held a hearing on the proposal on August 29. BCVMC approved the sub-agency model and recommended it to BCFIRB on October 31, 2013.
Final submissions invited (November 2013)
To conclude the supervisory review, BCFIRB invited final written submissions from interest holders. The submission period opened on November 15, 2013, giving parties a final opportunity to comment before BCFIRB issued its decision.
Final decision and oversight expectations (December 2013 to January 2014)
On December 23, 2013, BCFIRB approved the BCVMC-recommended sub-agency model. VIFP was designated as an agency operating under BCFresh, while VIP’s designation was continued.
BCFIRB clarified its expectations:
- VIFP and BCFresh must meet regulatory obligations and uphold sound marketing policy
- BCVMC must continue monitoring all agencies and adjust oversight as needed
A follow-up letter on January 8, 2014 clarified key parts of the decision.