During the Quota Assessment Tools Evaluation (QATE) project supervisory review (2016 – 2018), BCFIRB reviewed the 2005 Specialty Review directions to see how they affected quota transfers and new producer entry.
What was decided
On February 2, 2018, BCFIRB issued its supervisory review decision.
BCFIRB rescinded three directions to regulated marketing boards and commissions that had been required since 2005:
- ‘Last in — First out’ (LIFO) on all quota held by a producer
- The deemed transfer assessment model on quota issued by the BC Chicken Marketing Board before September 1, 2005
- 5% transfer assessment on quota issued by boards prior to 2005 to 2007
BCFIRB issued new directions, following a principles-based approach.
Boards and commissions were allowed to:
- Keep or revise existing tools, such as LIFO or 10/10/10
- Develop new, sector-specific policies
- Implement rules at a time they deemed strategic
Changes had to meet these expectations:
- All quota remains transferable
- Similar policies and rules apply to all quota classes, unless clearly justified
- Retain enough quota to support new entrant and policy programs
- New entrant programs must continue and be reviewed regularly
- Quota exchanges must be transparent and accountable
Why BCFIRB conducted this review
In 2005, BCFIRB conducted a Specialty review to improve how quota was managed across B.C.’s supply-managed sectors. The review led to new directions on quota transfer assessments and new entrant programs, grounded in core principles:
- Quota is intended to be produced
- Quota is transferable
- Producers are actively engaged and committed to the industry
- Quota is available to supply-managed regulated marketing boards and commissions to support policy objectives, including development of specialty markets and providing for new entrants in the supply management system
These principles were formalized and extended to all types of quota, including mainstream, specialty and new entrant quota.
Why a new review was needed
From 2005 to 2016, market conditions in supply-managed sectors changed significantly. Some sectors, like dairy, eggs, and chicken, grew rapidly. Others, like turkey, faced more difficult market conditions. At the same time, the agricultural landscape became more complex, with:
- Retail and processor consolidation
- Shifting consumer expectations around food production
- Requests from boards to adjust or expand assessment exemptions
In response to these changes, BCFIRB approved several amendments to its original directions. However, differences emerged in how the principles were applied across sectors. These inconsistencies and increasing policy complexity signalled the need for a focused, cross-sector evaluation.
Purpose of the Quota Assessment Tools Evaluation (QATE) project
By 2016, BCFIRB saw the need for a focused review of whether the 2005 directions were still effective. This project was launched to assess whether the existing tools:
- Still supported the movement of quota between producers
- Continued to reduce barriers to entry for new farmers
- Reflected the goals set out in the 2005 Specialty Review and Ministry of Agriculture’s 2004 Regulated Marketing Economic policy (PDF, 675KB)
The review provided an opportunity to:
- Modernize outdated policies
- Reduce unnecessary barriers
- Support more responsive, sector-specific governance going forward
How quota management works in B.C.
In Canada’s supply-managed sectors, quota is a licence to produce a set amount of a regulated commodity (like milk, eggs or poultry) over a specific period. In B.C., regulated marketing boards and commissions allocate quota to producers and regulate how it can be transferred.
Quota transfers and assessments
Producers can transfer quota either directly or through a quota exchange operated by their supply-managed board. Transfers may be subject to a transfer assessment, which requires a portion of the quota to be returned to the board. This returned quota helps:
- Support new entrant programs
- Develop specialty or regional markets
- Advance broader policy goals
Transfer assessments are one of several tools used to manage quota equitably and sustainably.
Oversight and policy direction
BCFIRB oversees and provides direction to supply-managed boards. As part of the 2005 Specialty Review, BCFIRB established four guiding principles:
- Quota is intended to be produced
- Quota is transferable
- Producers are actively engaged and committed to the industry
- Quota is available to support policy objectives (for example, development of specialty markets and providing for new entrants)
Quota management tools
To support these principles, BCFIRB introduced policy tools including:
- ‘Last in — first out’ (LIFO): requires a producer to transfer the last quota they received first
- 10/10/10 transfer assessment: required a portion of quota (declining over 10 years) to be returned when transferred
The QATE project reviewed and revised these tools.
Timeline of the review process
The Quota Assessment Tools Evaluation (QATE) project was carried out in three phases between 2016 and 2018. The process involved collaboration between BCFIRB and the supply-managed boards, with input from industry interest holders.
Step 1: Define scope and initiate review
BCFIRB launched the QATE project on November 22, 2016.
On February 3, 2017, BCFIRB held an introductory workshop with the supply-managed boards to:
- Define the scope of the review
- Discuss evaluation questions, data needs, and timelines
- Confirm expectations for the process
Read the approved Terms of Reference – February 28, 2017 (PDF, 3.2MB)
Step 2: Consultation and analysis
Each regulated marketing board and commission conducted its own analysis and consulted with industry interest holders.
The participating boards and commissions were:
- BC Broiler Hatching Egg Commission (BCBHEC)
- BC Chicken Marketing Board (BCCMB)
- BC Egg Marketing Board (BCEMB)
- BC Milk Marketing Board (BCMMB)
- BC Turkey Marketing Board (BCTMB)
Step 3: Submissions to BCFIRB and decision-making (July 2017 to Feb 2018)
Boards and commissions submitted their analysis and recommendations to BCFIRB:
- BC Broiler Hatching Egg Commission QATE Submission (PDF, 75KB) – June 30, 2017
- BC Chicken Marketing Board QATE Submission (PDF, 17.8MB) – July 6, 2017
- BC Egg Marketing Board QATE Submission (PDF, 9.5MB) – June 30, 2017
- BC Milk Marketing Board QATE Submission (PDF, 5.9MB) – June 30, 2017
- BC Turkey Marketing Board QATE Submission (PDF, 3.2MB) – July 4, 2017
BCFIRB held follow-up meetings with each supply-managed board to discuss their submissions. BCFIRB issued its final decision on February 2, 2018.
Documents related to the review
These documents show what happened during the supervisory review. They include decisions, submissions, meeting records and correspondence from 2016 through 2020.