March 24th OCO AGM agenda and slides.

1. 2016 Organic Council of Ontario
Annual General Meeting
Turning Over a New Leaf

2. Agenda
9:00: Arrival and Registration
9:30: Welcome from OCO’s President and Chair, Tom Manley
9:45: Presentation of Highlights on Check Off Work, Carolyn Young
10:00: Presentation by Marni Karlin, VP of Government Relations, OTA
11:00: Questions and Small Group Discussion
11:45: Lunch and Networking
12:45: Updates on the Organic Standards, Board Director Ted Zettel
1:15: Updates/Discussion on Ontario Organic Regulation
1:40: Small Group Discussions on Ontario Organic Regulations
2:00: Break
2:15: Business Portion of AGM
4:15: Closing Remarks by Chair, Members Dismissed
4:30: Brief Meeting of New Board

3. Welcome from the Chair
• Welcome
• Important changes over the past year
• Why organics are more important than ever
• Looking forward
• Priorities for the Year

4. Thank You to our Sponsors

5. Check Off Research
• Research into Ontario’s Conventional Fee System
• Research into other Jurisdictions: Que, Prairies, US
• Piloting a Voluntary Production Contribution
Program
• Meetings with Minister’s Office and OMAFRA
• Exploring Feasibility for Provincial/National system

6. Regulations Governing
Marketing Levies
Organiza(on Type Regulatory Framework Key Characteris(cs
General Farm
Organiza.ons
Farm Registra.on and
Farm Organiza.ons
Funding Act, 1993
• Purpose to represent all types of crops/
livestock etc.
• Min. 250 registered farm businesses
• Min. 12 local branches with min. 10
Marke.ng Boards
Farm Products Marke.ng
Act; Milk Act
• authority to regulate tof the relevant
farm product including se<ng fee or
levy.
Sec.on 12 Associa.ons
Farm Products Marke.ng
Act
• The farm products marke.ng
commission maintains authori.es
• The commission can create regula.ons
to mandate levies,
Ontario Fruit and
Vegetable Growers
Associa.on
Farm Products
Containers Act
• Containers hard to regulate/license and
pool of funding shrinking as retailers
make own containers.
Na.onal boards or
agencies
Agricultural Products
Marke.ng Act
• Provincial board must exist first

7. Marketing Board/Association Levy
Contributions from the Organic Sector
DollarsContributedtoCommodity
Organizations
0
200000
400000
600000
800000
Grain Fruit Beef Pork Dairy Poultry Eggs Turkeys
$1,132,250 annually
(excluding OFVGA container fees)
7

8. Case Study: Quebec
• Organic Surcharge: CAEQ is a non-profit
accreditor that collects a surcharge through
certification bodies for maintaining organic
standards
• Organic Grain Additional Check Off: Organic
grain syndicate put for a resolution in 2014 to the
Grain Farmers of Quebec to create an additional
organic levy: 0.50/mT. They chose the amount
based on the sector’s needs

9. Case Study: Prairie Organic
Development Fund
• Prairie Organic Commission—Gentleman’s
Agreement: Prairie Organic Development Fund started
as a voluntary production contribution approach, but
biggest investors were large buyers; so large that a
check off was too expensive, needed a cap.
• Prairie Organic Development Fund: Similar to COTA’s
membership model, split between three provinces,
shared resources
• Federal Non-Profit: $14,000 to incorporate, legal time
donated, administered by SOD

10. Study: PODnd

12. Case Study: GRO Organic

13. What’s Happening in
Ontario?
1. Approached Commodity Boards to transfer Funds:
• In 2011, OCO approached commodity boards
• Met with Pork, the OFVGA, the Egg Board, the DFO,
the OFA, the Ontario Grain Farmers, staff from the
Beef Farmers of Ontario, met the Apple Growers of
Ontario
• In general, the boards saw no benefit to them, and
felt they were serving their members
• Boards suggested they would be further moved if
there was a strong push from their members and/or
outside forces.
2. Voluntary Production Contribution Developed

14. Sector Leader:Homestead Organics
• Charges $0.50/MT to producers
based on Quebec fees and $1.00/MT
to interested customers
• Timeline for implementation: 1-2
years, need to implement charges
through purchasing agreements
• Communication of Changes:
Announcement in newsletter
• # of Producers: 45
• # of Customers: 5
• Total in 2014: $1,302.17
• Total in 2015: $7,164.90
14

15. Other Experiences
• Canadian vendors: 0.05% of purchase
order, Pfenning’s to match 0.05%
• Pfenning’s farmed produce: Pfenning’s
pays 0.1%
• Customers: 0.1% of invoices
• Originally their producer-suppliers responded
positively, customers negatively and they
were reluctant to implement fee to just
producers.
• Trial implementation with 2 customers in
February enabled accounting kinks to be
smoothed out; Full implementation for March
2016
• Despite initial reactions to this date there is
no one who’s opted out, if that happens
Pfenning’s will contribute on their behalf
15

16. Options for Ontario
Con.nue with Voluntary Produc.on Contribu.on Program
Pass Marke.ng Board Resolu.ons
Cer.fica.on Bodies Collect Organic Surcharge
Advocate for an Organic Products Exemp.on
Apply for Organic Sector Marke.ng Board
Apply for an Organic Sector sec.on 12 Associa.on
Apply for General Farm Organiza.on Status
Apply for Separate Organic Marke.ng Boards/Associa.ons
Advocate for Legisla.ve Change
Create Par.al Exemp.on
Na.onal Commodity Board/Promo.ons and Research Agency
16

17. Marni Karlin
Karlin graduated from The George Washington
University with honors in 1998 with a B.A. in
International Economics and Politics. In 2001,
she received her J.D. degree with honors from
the University of Chicago Law School, and
subsequently was admitted to the New York
Bar. She has served 11 years in private and
government legal practice, developing
substantial writing, oral communication,
research and analytical skills. Besides her
professional skills she has a passion for
sustainable and organic food, and received a
Culinary Arts diploma, with honors, in 2007 from
Le Cordon Bleu in Paris, France. Since 2008, in
her spare time, she has served as Policy
Adviser and Market Manager for EcoFriendly
Foods, a local sustainable meat producer and
processor in Moneta, VA, to formulate its policy
goals and congressional testimony.

18. Questions for Marni?
18

19. Small Group Discussions
• 15-20 Minutes to Discuss at Your Table
• Someone Takes Notes, Someone to Report
What aspects of GRO Organic do you like?
What aspects GRO Organic do you not like?
Which aspects are most relevant to the Ontario
context? Which ones are not?

20. Lunch
20

21. Updates on the
Organic Standards

22. Provincial Organic
Regulation Research
• Committee formed in 2014-15
• Research compiled by Maureen Bostok
• Quebec, Manitoba, British Columbia and New
Brunswick
• Options for Small Scale Farmers, Tony McQuail
• What Should Ontario do?

23. Do We Need It?
• Consumer confusion about value of organics vs. natural or
local
• No piece of provincial legislation supporting organic means
no programs or government infrastructure for organics
• National level enforcement is very weak
• Some reports of fraud at retail and some farmers’ markets
• Organic Products Act might allow for exemption from
commodity boards for organic products
• Other provinces complaining about Ontario??

24. Ontario 2012 Statistics
• 57% of farms making organic claims are certified organic
• 81% of businesses with annual sales over $1M are certified
• 82% of producers, 100% of handlers, 94% of processors and 88% of
retailers are moving certified organic products they have sourced from
elsewhere in the value chain
• Only 28% of those making organic claims are certified organic in a
sector valued at $2.9M annually;
• Farmers’ Markets - 33% making organic claims, 10% certified organic
(612 vendors from 52 markets, 166 markets in Ontario) $180M;
• On Farm Markets - 4% certified; $210M based on 135 farm stalls, 28%
of which make organic claims, 5% of which are certified

25. Comparison of Regulations
Quebec
British
Columbia
Manitoba
New
Brunswick
In place prior
to 2009 Fed
Regs
2002 1993
Introduced
following the
Fed Regs
Mandatory in
2015?
2007, enacted
2013,
2014
Title
Act Respecting
Reserved
Designations
and Value-
Added Claims
Organic
Products
Certification
Regulation
Organic
Agricultural
Products Act
The New
Brunswick
Organic Grade
Regulation
under the
Natural
Products Act
Organic Logo
Bio Quebec
2011
Organic
Checkmark
Capable of
instituting

26. Comparison of Regulations
Quebec British Columbia Manitoba New Brunswick
Internal Ministerial
Function
x
Integrated into the
NB Farm Product
Commission
Dedicated inspectors x
Enforcement
CAEQ collects fees from
certifiers and
COABC is appointed as
Administrator in the act.
Producer certifying
agencies are voting
members of COABC &
monitors the use of the
Organic Checkmark.
Fees collected.
Complaints-
based. Three
consultants on
call and paid
for by
government to
inspect.
The NB Farm
Product Commission
is responsible for
implementing,
administering and
compliance of the
NB Organic Grade
Regulation.
Enforcement will be
carried out by
NBDAAF
Enforcement
Officers.
Collects fees to support
administrative bodies
x x
Subsidies for
certification fees
x
x (suspended a couple of
years ago?)
x xx

27. Small Scale Regulations
1. OCPRO—Local Organic Certification
• 10 acres or less, considered low risk and don’t require annual inspection
• 4 producers certified in 2015, expecting 5-10 in 2016
• Will review the program in 2017
2. Foodland Organic Self-Declaration Registry
• No size limit, only for Direct Marketers (no retail)
• Must undertake training, understanding of standards and best practices for
organic management
• Self-Declare and pay small fee ($100?)
• Listed on registry, access to Foodland Organic branding

28. Small Scale Rationale
• Ontario has largest population of uncertified organic farmers and direct
marketers
• Many are operating on tiny margins, businesses are precarious
• As long as they sell directly to customers, they don’t require the
branding—relationship built on trust
• Often consider practices to be “beyond organic”—ie. mixed farming
• Need something to get those producers in the system and able to scale
up
• Not likely to certify if there is an Ontario organic regulation?
• Difficult to certify

29. Small Group Discussion
• 15 Minutes to Discuss at Tables, 1 min report back
• Choose a Notetaker and Reporter
Do we need a Ontario Intra-Provincial Regulation?
What kind of regulation would you like to see in
Ontario?
What kind of regulation would you NOT like to see
in Ontario?

30. Break
30

31. Business Meeting
• Only members may vote, 1 vote each
• Each member has a voter card
• Make motion, seconded, any discussion or questions,
vote on motion, all opposed, abstentions
• Nominated candidates voted on by ballots, you have a
ballot for your sector and can only vote on your sector
• Nominations for candidacy are still welcome

32. Business Meeting Agenda
Agenda Purpose Who Time
1. Call to Order To begin Chair 2:15
2. Approval of Agenda Approval Chair 2:17
3. Approval of Minutes from 2015 AGM Approval Chair 2:20
4. Elec(on of Board Members Ballot Vote Chair
5. Reports Chair 2:30
a. Treasurer’s Report Informa.on Treasurer 2:50
b. Auditor’s Report Informa.on Treasurer 3:05
c. Changing from Audit to Review Approval Treasurer 3:35
d. Ac.vi.es Report (Staff and Board) Informa.on Staff 3:50
6. Elec(on Results Directors
Named
Chair 4:00
7. New Business and Member News Informa.on Members 4:15
8. Adjournment Chair To End 4:25

33. Board Nominations
• Board members with remaining term: John Devlin, Treasurer
• Board members that are moving on: Hugh Martin, Ted Zettel,
Jacob Pries
• Also thanks to those board members that ended their terms
earlier this year
• Current Positions available: Producer, Processor,
Distributor, Marketer, Retail, Association/NGO, three At-
Large are appointed
• Nominations for candidacy are still welcome

34. Board Nominations
Seeking Skills in:
• Fundraising
• Business Development
• Marketing and Brand
Development
• Social media and
Communications Strategy
• Media Relations
• Website and Membership
Management Tools
• Knowledge of Organic
Regulations and
Certification
• Government Relations
• Non-profit Management
and Governance
• Previous board experience

35. Business Meeting Agenda
1. Elec(on of Board Members
a. Producer Nominees (1 min each) Introduc.ons Nominees 2:30
b. Processor Nominees (1 min each) Introduc.ons Nominees 2:32
c. Distributor Nominees (1 min each) Introduc.ons Nominees 2:34
d. Marketer Nominees (1 min each) Introduc.ons Nominees 2:35
e. Retail Nominees (1 min each) Introduc.ons Nominees 2:36
f. Cer.fier Nominees (1 min each) Introduc.ons Nominees 2:38
g. NGO/Associa.on Nominees ( 1 min ) Introduc.ons Nominees 2:40
h. At Large Nominees (1 min each) Introduc.ons Nominees 2:42
i. Collec.on of Votes and Proxy Votes Collected Staff 2:50

36. Treasurer’s Report

37. Auditor’s Report

38. Changing from Audit to
Financial Review

39. Activities Report-
Membership
• Number of Members: As we entered 2016, we had 145
members
• New Members: In the last few months we've had a 6%
increase in new members
• Calendar Cycle: Moved to January renewal
• Change in the Member Fee Structure: Better
categorization, based on annual sales

40. Activities Report-
Membership
Producer
Direct to Consumer (Retail) / Distributor
Association / NGO
Consumer
Processor
Industry Consultant / Expert / Press
Wholesaler or Marketer
Certifier
Input Supplier
0 15 30 45 60

41. Activities Report-Policy
• Check Off Research: Discussion Paper, Working Group
Meeting
• Pre-Budget Submission
• Meeting with Minister’s Office and Directors
• Research into Ontario Provincial Regulations

42. Activities Report-
Fundraising
• Growing Forward 2 application: consult with sector on
priorities and business plan
• Agricultural Management Institute
• Production Contribution Program: now 5 contributors
• Greenbelt Local Food Investment Fund: check off
feasibility study
• Trillium Seed Grant: Further develop the Production
Contribution Program and Ontario Regulation

43. Election Results

44. Announcements and
Member News

45. Join us tonight at Artisanale for Dinner
Next Year’s AGM: April 6th