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ORGANIC
REGULATION IN
ONTARIO
Hi,
Iโ€™m Tom!
2
Introduction
Background
Other Jurisdictions
Selection Criteria
Options
Option 1: COR Certification
Option 2: COR + Small-Scale Exemption
Option 3: COR + Small-Scale-Led Certification
Option 4: COR + Small-Scale Regional Certification
Option 5: COR + Ontario Organic Program
Q&A
3
Introduction
โ—‹ A way in which organic in Ontario is lagging behind many of its
provincial counterparts: the lack of organic regulation
โ—‹ Organic products in Ontario are regulated by the Canadian
Organic Regime
โ— Only applies if those products cross provincial or national
borders. This means that any products produced, marketed,
distributed and sold just in Ontario are not liable to any
regulation or oversight of their organic claims
โ—‹ Contrast: Quebec, Manitoba, New Brunswick, Nova Scotia,
British Columbia and Alberta
4
Introduction
โ—‹ Hindering the growth of what could be a significantly more robust
and vibrant organic sector
โ— Erodes consumer trust in honest organic businesses and
brands
โ— Creates unfair competition in the marketplace for those
organic farmers who have worked hard to meet standards
โ—‹ With support in the form of Bill 54, Organic Products Act, 2018, an
opportunity now presents itself to introduce organic regulation in
Ontario to the benefit of the whole sector
5
Background
โ—‹ Bill 153, a Private Memberโ€™s Bill (PMB) introduced while the
previous provincial government was in power
โ— Introduced by NDP MPP Peter Tabuns and PC MPP Sylvia
Jones
โ— Passed through 1st and 2nd readings but stopped because
of 2018 provincial elections
โ—‹ Bill 54, also a PMB, introduced on November 12th, 2018
โ— Introduced by PC MPP Jim McDonell
โ— Ordered to the Committee of the Whole House
6
Background
โ—‹ Regulation has received mention in the Office of the Auditor
General of Ontarioโ€™s Annual Report 2019
โ— Section 3.06 of Chapter 3 of the Report recognizes that
Ontario is an outlier with respect to regulation and
recommends that OMAFRA โ€œconsider having organic food
produced and consumed in Ontario certified to the
federal Canadian Organic Standardsโ€
7
Other Jurisdictions
โ—‹ It is helpful to look at how other provinces have structured
their regulatory schemes
โ—‹ Quebec
โ— Had its own organic standard and still has a unique organic
brand, but has since adopted the federal standard
โ— In 2015, the Quebec government announced a $9 million
growth strategy for the organic sector, including direct
payments for transition, promotion, and research
โ— Regulation is enforced by the armโ€™s-length agency CARTV.
This agency is jointly funded by the government and the
organic industry.
8
Other Jurisdictions
โ—‹ Manitoba
โ— The Organic Agricultural Products Act, 2007, enforces the
federal standard
โ—‹ New Brunswick
โ— The New Brunswick Farm Products Commission regulates
and enforces the Canadian Organic Standards
โ— New Brunswick also subsidizes new farmers seeking
organic certification up to 70%, to a maximum of $500 per
operator over three years, provides up to $4500 for training
and covers up to 60% of organic consulting fees
9
Other Jurisdictions
โ—‹ Nova Scotia
โ— The Agriculture and Marketing Act enforces the Canadian
Organic Standards
โ— Nova Scotia also supports organic farmers through transition
by subsidizing up to 2 years of transition by 70% to a
maximum of $500
โ—‹ Alberta
โ— Under the Supporting Albertaโ€™s Local Food Sector Act, 2018,
Albertaโ€™s organic regulations require that any Alberta-made
products labelled as โ€˜organicโ€™ meet federal certification
requirements of the COR.
10
Other Jurisdictions
โ—‹ British Columbia
โ— Under the British Columbia Food and Agricultural Products
Classification Act, provincial regulations are administered by
COABC
โ— Two types of certification
โ–  COR
โ–  British Columbia Certified Organic Program (regional)
โ— Risk assessment built in (frequency of inspections
is reduced alleviate monetary/administrative
burden)
11
Selection Criteria
12
Criterion Explanation
Legal Feasibility and Good
Governance
โ— Constitutional
โ— Align the correct actors
โ— Align with the Bill
Economic Soundness and
Efficiency
โ— Correct a market failure
โ— Promote industry well-being
โ— Promote efficiency
โ— Prepare Ontario for emerging
market(s)
Selection Criteria
13
Criterion Explanation
Evidence-Based โ— Align with our best evidence
โ— Enable the collection of
information
โ— Facilitate the use of
information
Political VIability โ— Feasible in current political
climate
โ— Palatable across party lines
Selection Criteria
14
Criterion Explanation
Fiscal Sustainability and Cost-
Effectiveness
โ— Revenue neutral for
government
โ— One-time expenditure
โ— Contributes to long-term
surplus
โ— Contributes to long-term cost
avoidance
Equitable โ— Redistribute welfare in
equitable fashion
โ— Target the outcomes of the
vulnerable or marginalized
Selection Criteria
15
Criterion Explanation
Administrative Efficiency โ— Neutral for government
โ— One-time agreement
โ— Contributes to long-term
surplus
โ— Contributes to long-term cost
avoidance
Compliance Promotion โ— Promotes compliance with
standards
โ— Enforces penalties for non-
compliance
Options
โ—‹ The Act still allows for the development of regulations for products like textiles,
cosmetics, cannabis and more. Certification to the COR would, however, would
be a barrier.
โ—‹ In each option, the provincial government is responsible for compliance
enforcement. A compliance enforcement protocol for Ontario has been developed
based on the Albertan and CFIA models.
โ—‹ Considerations include:
โ— Administration
โ— Compliance Enforcement
โ— Labelling
โ— Risk Assessment
โ— Benefits & Challenges
16
COR Certification
Option 1
17
Option 1: COR
โ—‹ Option 1 requires that all Ontario-made products marketed, labelled or
advertised as organic be certified to the requirements of the Canadian
Organic Regime
โ—‹ Administration
โ— Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
โ–  Organics Specialist out of OMAFRAโ€™s Food Safety and
Environment Division
โ— The division includes teams such as the Food Safety
Inspection Delivery Branch, the Food Safety Systems
Development Branch and Regulatory Compliance Ontario,
all three of which have responsibilities that intersect with
the regulation of the marketing and labeling of organic
products in Ontario
18
Option 1: COR
โ—‹ Administration
โ— Ministry of Government and Consumer Services (MGCS)
โ–  Consumer Protection Ontario, enforces protection laws,
investigates violations and handles complaints
โ— Vintners Quality Alliance (VQA)
โ—‹ Through an administrative agreement with MGCS,
the VQA enforces standards, controls use of terms,
promotes awareness, engages in public education,
audits for compliance, etc.
19
Option 1: COR
โ—‹ Benefits
โ— Administrative ease
โ— Compliance promotion
โ—‹ Challenges
โ— Not equitable to small-scale
โ— Not politically viable
20
COR + Small-Scale
Exemption
Option 2
21
Option 2: COR + Small-Scale
Exemption
โ—‹ Option 2 requires COR, except those products produced or processed by
โ€œsmall-scale operations.โ€ Exemption of small-scale operations from
certification is based on the recognition that certification to the COR, as it
exists in its current form, is financially and operationally burdensome or
inefficient for operators without resources required to maintain certification.
โ—‹ Risk Assessment
โ— What is an appropriate metric for โ€œsmall-scaleโ€ designation?
โ–  Yearly revenue generated through organic sales?
โ–  The ratio of an operationโ€™s sales that are direct-to-consumer?
โ–  Acres?
โ–  A combination?
22
Option 2: COR + Small-Scale
Exemption
โ—‹ Benefits
โ— Equitable to small-scale (maybe, does not confer benefits)
โ— Politically viable
โ— Administrative ease
โ—‹ Challenges
โ— Does not promote compliance
โ— Not politically viable
23
COR + Small-
Scale-Led
Certification
Option 3
24
Option 3: COR + Small-Scale-Led
โ—‹ Option 3 requires COR, except those products produced or processed by
โ€œsmall-scale operations.โ€ Instead, small-scale operations may certify
under a self-regulation scheme such as:
โ— Pledge/Self-Declaration
โ— Peer Review
โ—‹ Administration
โ— It is unclear who would spearhead the administration of self-
regulation schemes.
โ–  If the government, that is additional cost/burden
โ–  If another organization, that is additional burden
โ—‹ Labelling
โ— Would require the creation of an additional label
25
Option 3: COR + Small-Scale-Led
โ—‹ Benefits
โ— Equitable to small-scale (maybe, might not confer
benefits)
โ— Politically viable
โ—‹ Challenges
โ— May not promote compliance
โ— Administratively burdensome
โ— Customer confusion (additional label)
26
COR + Small-Scale
Regional Certification
Option 4
27
Option 4: COR + Small-Scale
Regional
โ—‹ Option 4 requires COR, except those products produced or
processed by โ€œsmall-scale operations.โ€ Small-scale operations are
given the choice to certify to one of:
โ— COR
โ— A โ€œvalid regional organic certificationโ€ program which is
accredited
โ—‹ Certification to the program involves lowered inspection and
surveillance intensity in exchange for use of the programโ€™s logo
โ—‹ Administration
โ— Option 1 + extra auditing of regional programs to ensure
compliance with best-practices
28
Option 4: COR + Small-Scale
Regional
โ—‹ Benefits
โ— Equitable to small-scale (maybe, might not confer benefits)
โ— Promotes compliance
โ— Politically viable
โ—‹ Challenges
โ— Administratively burdensome
โ— Customer confusion (additional labels)
โ— Unclear market mechanisms (subsidize program deliverers or
penalize them?) 29
COR + Ontario
Organic Program
Option 5
30
Option 5: COR + Ontario Organic
Program
โ—‹ Option 5 requires
โ— COR (if crossing borders)
โ— the creation of OOP (if Ontario only)
โ—‹ This would require the government to administer all aspects of new
OOP certification, including:
โ— Compliance enforcement
โ— Labelling
โ— OOP regulations
31
Option 5: COR + Ontario Organic
Program
โ—‹ Benefits
โ— Equitable to small-scale
โ— Promotes compliance
โ— Politically viable
โ—‹ Challenges
โ— The most administratively burdensome
โ— Must consider success of British Columbia and Quebec
against their history of programs pre-COR
32
Thank you!
Questions?
33

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Organic Regulation in Ontario

  • 3. Introduction Background Other Jurisdictions Selection Criteria Options Option 1: COR Certification Option 2: COR + Small-Scale Exemption Option 3: COR + Small-Scale-Led Certification Option 4: COR + Small-Scale Regional Certification Option 5: COR + Ontario Organic Program Q&A 3
  • 4. Introduction โ—‹ A way in which organic in Ontario is lagging behind many of its provincial counterparts: the lack of organic regulation โ—‹ Organic products in Ontario are regulated by the Canadian Organic Regime โ— Only applies if those products cross provincial or national borders. This means that any products produced, marketed, distributed and sold just in Ontario are not liable to any regulation or oversight of their organic claims โ—‹ Contrast: Quebec, Manitoba, New Brunswick, Nova Scotia, British Columbia and Alberta 4
  • 5. Introduction โ—‹ Hindering the growth of what could be a significantly more robust and vibrant organic sector โ— Erodes consumer trust in honest organic businesses and brands โ— Creates unfair competition in the marketplace for those organic farmers who have worked hard to meet standards โ—‹ With support in the form of Bill 54, Organic Products Act, 2018, an opportunity now presents itself to introduce organic regulation in Ontario to the benefit of the whole sector 5
  • 6. Background โ—‹ Bill 153, a Private Memberโ€™s Bill (PMB) introduced while the previous provincial government was in power โ— Introduced by NDP MPP Peter Tabuns and PC MPP Sylvia Jones โ— Passed through 1st and 2nd readings but stopped because of 2018 provincial elections โ—‹ Bill 54, also a PMB, introduced on November 12th, 2018 โ— Introduced by PC MPP Jim McDonell โ— Ordered to the Committee of the Whole House 6
  • 7. Background โ—‹ Regulation has received mention in the Office of the Auditor General of Ontarioโ€™s Annual Report 2019 โ— Section 3.06 of Chapter 3 of the Report recognizes that Ontario is an outlier with respect to regulation and recommends that OMAFRA โ€œconsider having organic food produced and consumed in Ontario certified to the federal Canadian Organic Standardsโ€ 7
  • 8. Other Jurisdictions โ—‹ It is helpful to look at how other provinces have structured their regulatory schemes โ—‹ Quebec โ— Had its own organic standard and still has a unique organic brand, but has since adopted the federal standard โ— In 2015, the Quebec government announced a $9 million growth strategy for the organic sector, including direct payments for transition, promotion, and research โ— Regulation is enforced by the armโ€™s-length agency CARTV. This agency is jointly funded by the government and the organic industry. 8
  • 9. Other Jurisdictions โ—‹ Manitoba โ— The Organic Agricultural Products Act, 2007, enforces the federal standard โ—‹ New Brunswick โ— The New Brunswick Farm Products Commission regulates and enforces the Canadian Organic Standards โ— New Brunswick also subsidizes new farmers seeking organic certification up to 70%, to a maximum of $500 per operator over three years, provides up to $4500 for training and covers up to 60% of organic consulting fees 9
  • 10. Other Jurisdictions โ—‹ Nova Scotia โ— The Agriculture and Marketing Act enforces the Canadian Organic Standards โ— Nova Scotia also supports organic farmers through transition by subsidizing up to 2 years of transition by 70% to a maximum of $500 โ—‹ Alberta โ— Under the Supporting Albertaโ€™s Local Food Sector Act, 2018, Albertaโ€™s organic regulations require that any Alberta-made products labelled as โ€˜organicโ€™ meet federal certification requirements of the COR. 10
  • 11. Other Jurisdictions โ—‹ British Columbia โ— Under the British Columbia Food and Agricultural Products Classification Act, provincial regulations are administered by COABC โ— Two types of certification โ–  COR โ–  British Columbia Certified Organic Program (regional) โ— Risk assessment built in (frequency of inspections is reduced alleviate monetary/administrative burden) 11
  • 12. Selection Criteria 12 Criterion Explanation Legal Feasibility and Good Governance โ— Constitutional โ— Align the correct actors โ— Align with the Bill Economic Soundness and Efficiency โ— Correct a market failure โ— Promote industry well-being โ— Promote efficiency โ— Prepare Ontario for emerging market(s)
  • 13. Selection Criteria 13 Criterion Explanation Evidence-Based โ— Align with our best evidence โ— Enable the collection of information โ— Facilitate the use of information Political VIability โ— Feasible in current political climate โ— Palatable across party lines
  • 14. Selection Criteria 14 Criterion Explanation Fiscal Sustainability and Cost- Effectiveness โ— Revenue neutral for government โ— One-time expenditure โ— Contributes to long-term surplus โ— Contributes to long-term cost avoidance Equitable โ— Redistribute welfare in equitable fashion โ— Target the outcomes of the vulnerable or marginalized
  • 15. Selection Criteria 15 Criterion Explanation Administrative Efficiency โ— Neutral for government โ— One-time agreement โ— Contributes to long-term surplus โ— Contributes to long-term cost avoidance Compliance Promotion โ— Promotes compliance with standards โ— Enforces penalties for non- compliance
  • 16. Options โ—‹ The Act still allows for the development of regulations for products like textiles, cosmetics, cannabis and more. Certification to the COR would, however, would be a barrier. โ—‹ In each option, the provincial government is responsible for compliance enforcement. A compliance enforcement protocol for Ontario has been developed based on the Albertan and CFIA models. โ—‹ Considerations include: โ— Administration โ— Compliance Enforcement โ— Labelling โ— Risk Assessment โ— Benefits & Challenges 16
  • 18. Option 1: COR โ—‹ Option 1 requires that all Ontario-made products marketed, labelled or advertised as organic be certified to the requirements of the Canadian Organic Regime โ—‹ Administration โ— Ministry of Agriculture, Food and Rural Affairs (OMAFRA) โ–  Organics Specialist out of OMAFRAโ€™s Food Safety and Environment Division โ— The division includes teams such as the Food Safety Inspection Delivery Branch, the Food Safety Systems Development Branch and Regulatory Compliance Ontario, all three of which have responsibilities that intersect with the regulation of the marketing and labeling of organic products in Ontario 18
  • 19. Option 1: COR โ—‹ Administration โ— Ministry of Government and Consumer Services (MGCS) โ–  Consumer Protection Ontario, enforces protection laws, investigates violations and handles complaints โ— Vintners Quality Alliance (VQA) โ—‹ Through an administrative agreement with MGCS, the VQA enforces standards, controls use of terms, promotes awareness, engages in public education, audits for compliance, etc. 19
  • 20. Option 1: COR โ—‹ Benefits โ— Administrative ease โ— Compliance promotion โ—‹ Challenges โ— Not equitable to small-scale โ— Not politically viable 20
  • 22. Option 2: COR + Small-Scale Exemption โ—‹ Option 2 requires COR, except those products produced or processed by โ€œsmall-scale operations.โ€ Exemption of small-scale operations from certification is based on the recognition that certification to the COR, as it exists in its current form, is financially and operationally burdensome or inefficient for operators without resources required to maintain certification. โ—‹ Risk Assessment โ— What is an appropriate metric for โ€œsmall-scaleโ€ designation? โ–  Yearly revenue generated through organic sales? โ–  The ratio of an operationโ€™s sales that are direct-to-consumer? โ–  Acres? โ–  A combination? 22
  • 23. Option 2: COR + Small-Scale Exemption โ—‹ Benefits โ— Equitable to small-scale (maybe, does not confer benefits) โ— Politically viable โ— Administrative ease โ—‹ Challenges โ— Does not promote compliance โ— Not politically viable 23
  • 25. Option 3: COR + Small-Scale-Led โ—‹ Option 3 requires COR, except those products produced or processed by โ€œsmall-scale operations.โ€ Instead, small-scale operations may certify under a self-regulation scheme such as: โ— Pledge/Self-Declaration โ— Peer Review โ—‹ Administration โ— It is unclear who would spearhead the administration of self- regulation schemes. โ–  If the government, that is additional cost/burden โ–  If another organization, that is additional burden โ—‹ Labelling โ— Would require the creation of an additional label 25
  • 26. Option 3: COR + Small-Scale-Led โ—‹ Benefits โ— Equitable to small-scale (maybe, might not confer benefits) โ— Politically viable โ—‹ Challenges โ— May not promote compliance โ— Administratively burdensome โ— Customer confusion (additional label) 26
  • 27. COR + Small-Scale Regional Certification Option 4 27
  • 28. Option 4: COR + Small-Scale Regional โ—‹ Option 4 requires COR, except those products produced or processed by โ€œsmall-scale operations.โ€ Small-scale operations are given the choice to certify to one of: โ— COR โ— A โ€œvalid regional organic certificationโ€ program which is accredited โ—‹ Certification to the program involves lowered inspection and surveillance intensity in exchange for use of the programโ€™s logo โ—‹ Administration โ— Option 1 + extra auditing of regional programs to ensure compliance with best-practices 28
  • 29. Option 4: COR + Small-Scale Regional โ—‹ Benefits โ— Equitable to small-scale (maybe, might not confer benefits) โ— Promotes compliance โ— Politically viable โ—‹ Challenges โ— Administratively burdensome โ— Customer confusion (additional labels) โ— Unclear market mechanisms (subsidize program deliverers or penalize them?) 29
  • 30. COR + Ontario Organic Program Option 5 30
  • 31. Option 5: COR + Ontario Organic Program โ—‹ Option 5 requires โ— COR (if crossing borders) โ— the creation of OOP (if Ontario only) โ—‹ This would require the government to administer all aspects of new OOP certification, including: โ— Compliance enforcement โ— Labelling โ— OOP regulations 31
  • 32. Option 5: COR + Ontario Organic Program โ—‹ Benefits โ— Equitable to small-scale โ— Promotes compliance โ— Politically viable โ—‹ Challenges โ— The most administratively burdensome โ— Must consider success of British Columbia and Quebec against their history of programs pre-COR 32