From 2019 to 2020, B.C. Farm Industry Review Board (BCFIRB) reviewed how the B.C. Vegetable Marketing Commission (BCVMC) was being run. This review arose from a series of appeals and industry issues. It focused on governance, accountability for agencies and how storage crop delivery allocation was issued.
What was decided
On December 22, 2020, BCFIRB’s decision confirmed the following outcomes:
- Moratorium lifted: In 2019, BCVMC stopped accepting new applications from agencies and producer-shippers. BCFIRB found this indefinite freeze unfair and ordered it to end on October 21, 2020.
- Clear agency rules: BCVMC had to finalize and implement a clear framework to hold agencies accountable. The Agency Accountability Framework must support more transparent and consistent oversight. This includes setting performance expectations and defining governance structures.
- Better delivery allocation policies: BCVMC must improve how it allocates Delivery Allocation, especially for new entrants and growth. Before making substantive changes, it must implement directions on governance and on collecting comprehensive industry data. Ongoing review should assess regional opportunities and how Delivery Allocation is transferred between producers.
- Governance and conflict of interest clarified: BCVMC was required to explain how it handles real or perceived conflicts of interest in its decision-making. It also had to strengthen its overall governance practices.
BCFIRB decision to lift the moratorium — October 21, 2020 (PDF, 96KB)
Why BCFIRB conducted this review
BCFIRB began this supervisory review because of ongoing concerns about how the B.C. Vegetable Marketing Commission (BCVMC) was making decisions, how it was governed, and how it was overseeing agencies.
The review was triggered by BCVMC’s 2019 decision to stop accepting new agency and producer-shipper applications. This was implemented without a clear process or timeline for review.
Several appeals (including those from CFP Marketing Corporation and Prokam Enterprises Ltd.) pointed to issues with how the system works, especially around transparency, fairness and access to the regulated marketing system. Instead of handling these appeals one by one, BCFIRB paused the appeal processes and launched a full review to find the root causes of the issues and improve the system.
The review focused on:
- Policies for delivery allocations for storage crops, especially in terms of fairness, access and transparency
- How the commission is structured and makes decisions
- How designated agencies are held accountable and overseen
How the regulated vegetable sector works
In B.C., some farm products are part of a regulated marketing system. This means there are rules about how these products are grown, sold and distributed. The goal is to keep the system fair and stable.
The BCVMC manages this system for vegetables under the Natural Products Marketing (BC) Act. It is responsible for:
- Licensing growers, agencies (which sell crops on behalf of growers) and producer-shippers (growers who sell their own crops)
- Deciding who gets delivery allocation, which control who can deliver regulated crops and in what amounts
- Overseeing how agencies carry out their responsibilities
Some vegetables, such as potatoes and carrots, are called regulated storage crops. These are harvested and stored for delivery over time. They have specific rules for how delivery allocation is given out.
BCFIRB supervises boards like BCVMC. It ensures that the BCVMC follows the law, uses sound marketing policy and serves the public interest. If serious concerns arise, BCFIRB can conduct a supervisory review to assess and improve how the system works.
Timeline of the review process
Step 1: Consultation planning and scoping (April to May 2020)
BCFIRB invited feedback from over 150 industry interest holders on proposed review topics. Only eight responses were initially received, prompting a second round of outreach through an engagement survey.
Step 2: Industry consultation (July to August 2020)
All regulated vegetable producers and interest holders were invited to submit written feedback on the finalized review topics. BCFIRB also held meetings with interest holders who requested discussions.
Step 3: Commission consultation (September to October 2020)
BCVMC submitted its position on the review topics and provided updates on its strategic planning initiatives. BCFIRB held two meetings with the commission’s working group and received written responses to panel questions.
Step 4: Moratorium decision (October 21, 2020)
BCFIRB directed the commission to immediately lift the moratorium on new agency and producer-shipper applications. The panel found that BCVMC had not provided sufficient justification for the moratorium or a plan for resolving outstanding issues.
Step 5: Final decision (December 22, 2020)
BCFIRB released its final review decision, requiring improvements in governance, delivery allocation, and agency accountability. The decision provided a pathway for the commission to restore confidence and improve systemic fairness.
Documents related to the review
These documents show what happened during the supervisory review. It includes appeal activity, written submissions, consultation documents, interim measures and final implementation steps from 2019 to 2021.