The B.C. Farm Industry Review Board (BCFIRB) completed a supervisory review of how the B.C. Milk Marketing Board (BCMMB) governs its quota programs. The review focused on the Graduated Entrant Program.
What was decided
BCFIRB approved BCMMB’s proposed updates to its Graduated Entrant Program (GEP), with conditions to:
- Prevent “double dipping,” where participants could combine GEP benefits with family transfer exemptions
- Ensure transparency in quota transfers, ensuring all transactions are clearly documented and managed
BCMMB revised its rules accordingly. In 2015, BCFIRB confirmed that the final GEP meets its expectations. The final program rules are now in place.
- Decision affirming final GEP rules as compliant (PDF, 230KB) — June 2, 2015
- Initial supervisory review decision (PDF, 78KB) — September 23, 2014
- Follow-up decision about GEP conditions (PDF, 225KB) — December 2, 2014
Why BCFIRB conducted this review
In 2012, BCMMB proposed changes to BCFIRB’s policy that restricts the transfer of certain milk quotas between producers. BCMMB raised concerns about quota management issues, both on farms and across the industry, related to the quota transfer policy. This policy also applies to other supply-managed sectors in B.C.
However, BCFIRB found that the proposal did not address key issues such as fairness, transparency, and alignment with public interests. As a result, BCFIRB decided to conduct a formal review.
BCFIRB initiated this supervisory review on October 12, 2012 in its supervisory role under the Natural Products Marketing (B.C.) Act (NPMA).
Goals of the review
The main goals of the review were to:
- Evaluate the effectiveness of BCMMB’s current quota policies
- Assess how the proposed changes might impact fairness, transparency and the public interest
- Ensure that future policy changes are fair, transparent and aligned with the public interest
Quota challenges faced by the B.C. Milk Marketing Board
In recent years, BCMMB has overseen a variety of quota management issues, with some involvement from BCFIRB. These issues include:
- Under- and over-production of milk
- Availability of quota on the quota exchange
- Transparency in quota transfers
- Governance and administration of the new entrant program
- Succession planning
While governance is about addressing challenges, it is also about who makes decisions and how they are held accountable. BCMMB’s proposal to replace one policy with another did not consider the broader impacts, options, and interests. BCFIRB found this approach unsound.
Completing the policy cycle
The 2005 Specialty Review led to major policy and program changes for B.C.’s supply-managed sectors. These changes were based on:
- New government objectives
- Extensive consultations with all supply-managed regulated marketing boards and commissions
However, the policies from that review were never fully evaluated after implementation, leaving the policy cycle unfinished. This supervisory review “closed the loop” by requiring BCMMB to assess its current dairy quota policies. This review considered today’s industry and public needs before proposing any new changes.
The B.C. Milk Marketing Board’s role in the review
As part of this review, BCFIRB directed the B.C. Milk Marketing Board to carry out its own evaluation of the quota policies. This evaluation included:
- Engaging producers and interest holders through public consultations
- Reviewing if current quota policies (such as quota allocation, transfer, and entry programs) are meeting public interest and marketing goals
- Identifying issues or gaps
- Proposing solutions and improvements
- Addressing transparency and governance gaps
- Reporting back with findings and recommendations for improvements
BCFIRB’s directions focused on ensuring that policies are fair and accountable, consistent with legislative requirements and aligned with the principles of supply management and B.C. agriculture policy.
Timeline of the review process
The review took place in three key phases between 2012 and 2015, with input from both regulators and industry interest holders.
Step 1: Define scope and initiate review (2012)
BCFIRB initiated the review on October 12, 2012, due to concerns about BCMMB’s proposed change to the quota transfer assessment policy. This proposal raised issues with quota management across the dairy industry.
Read the October 12, 2012 review initiation letter (PDF, 52KB)
Initial meeting
On October 12, 2012, BCFIRB met with BCMMB to:
- Outline expectations for the review process
- Discuss the need for a transparent consultative evaluation of quota policies
- Set expectations for public engagement and industry consultations
Industry consultations
BCFIRB consulted with key interest holders, including:
- Dairy producers
- Industry associations
- Other regulatory bodies
Interest holders were invited to submit written input on the proposal. These consultations helped shape the review’s scope and approach.
Setting process structure
Following consultations:
- BCMMB developed a Terms of Reference for the review process
- BCFIRB approved these terms, formalizing the review’s scope and structure
Step 2: BCMMB quota policy and program evaluation (2013 to 2014)
The BCMMB conducted a consultative process, gathering input from interest holders and evaluating its existing policies.
Policy development
- BCMMB proposed updates to the GEP and quota transfer policies
- Interest holders, including dairy producers and industry experts, contributed feedback
- BCMMB submitted a final report with recommendations to BCFIRB
Step 3: Final decision and implementation (2014 to 2015)
BCFIRB reviewed BCMMB’s proposals and assessed whether any outstanding issues remained.
Documents related to the review
These documents show what happened during the supervisory review. They include BCFIRB’s decision, how BCMMB responded and background information.