Agriculture, Food and Rural Affairs Appeal Tribunal 1 Stone Road West
Tribunal d’appel de l’agriculture, de l’alimentation et des affaires rurales 1 Stone Road West
Guelph, Ontario, N1G 4Y2 Tel: (519) 826-3433, Fax: (519) 826-4232 Email: AFRAAT@ontario.ca
Guelph (Ontario) N1G 4Y2 Tél.: (519) 826-3433, Téléc.: (519) 826-4232 Courriel: AFRAAT@ontario.ca
AGRICULTURE, FOOD AND RURAL AFFAIRS APPEAL TRIBUNAL
APPEAL:
Association of Ontario Turkey Processors V Turkey Farmers of Ontario [ORDER TO DISMISS]
AOTP V TFO [ORDER TO DISMISS] 2021ONAFRAAT1
STATUTE:
Ministry of Agriculture, Food and Rural Affairs Act
HEARING:
January 25, 2021
DATE OF DECISION:
January 26, 2021
008AOTP20
NEUTRAL CITATION:
2021ONAFRAAT1
FILE NO.: 008AOTP20
DATE: 20210125
IN THE MATTER OF THE Ministry of Agriculture, Food and Rural Affairs Act, R.S.O. 1990, CHAPTER M.16, AS AMENDED.
AND IN THE MATTER OF: An Appeal to the Agriculture, Food and Rural Affairs Appeal Tribunal by the Association of Ontario Turkey Processors, appealing the Turkey Farmers of Ontario decision dated December 2, 2020.
BETWEEN:
Association of Ontario Turkey Processors Appellant
– and –
Turkey Farmers of Ontario Respondent
Represented by H. Turkstra
Represented by G. Spurr
Before: Katie DeBlock Boersma, Vice Chair David Stevens, Member
ORDER OF THE TRIBUNAL
This matter was heard on January 25, 2021. The parties had come to a resolution of the appeal prior to the hearing.
This appeal was brought by Association of Ontario Turkey Processors (“AOTP”) relating to a decision of Turkey Farmers of Ontario (“TFO”) respecting the COVID-19 Emergency Fund license fee (the “License Fee”) imposed by TFO on producers and the scheduled end date for such License Fee.
In May 2020, TFO imposed the License Fee on producers in the amount of $0.06 per kilogram of turkey marketed, in order to generate a fund for COVID-19 response purposes. The Regulation (imposing the License Fee) had a term of May 11, 2020 to October 15, 2020 (the “Regulation”).
TFO agreed with AOTP to extend the termination date for the Regulation to December 7, 2020. TFO devised a methodology by which the License Fee would be reduced to zero by weekly $0.005 increments beginning on December 7, 2020.
AOTP’s request for a further continuation of the License Fee was denied by TFO on December 3, 2020 and AOTP appealed that denial to the Tribunal.
The Tribunal heard submissions from each of the parties on the agreed to resolution. Based on these submissions, and on the consent of the parties, the Tribunal orders:
1The TFO COVID-19 Emergency Fund License Fee will terminate on April 26, 2021, subject to the following reduction methodology which will then commence on February 8, 2021 and continue thereafter to April 26, 2021; at which point the License Fee will be completely extinguished:
February 1, 2021
$ 0.060
February 8, 2021
$0.055
February 15, 2021
$0.050
February 22, 2021
$0.045
March 1, 2021
$0.040
March 8, 2021
$0.035
March 15, 2021
$0.030
March 22, 2021
$0.025
March 29, 2021
$0.020
April 5, 2021
$0.015
April 12, 2021
$0.010
April 19, 2021
$0.005
April 26, 2021
2The TFO COVID-19 Emergency Fund Policy-2020 (“Policy”) which was enacted contemporaneously with the Regulation, will cease to be in effect on April 26, 2021.
3Prior to April 26, 2021, processors may continue to file a Declaration of Use enabling them to retain and utilize the License Fee monies deducted, provided that the use is for some or all of the following purposes:
a. Financial support to mitigate increased processing costs incurred by turkey processors due to the requirement of undertaking equipment and facility sanitation, providing Personal Protection Equipment (PPE) to employees, and reduced line speed;
b. Contribution to additional costs incurred by turkey processors due to in-plant euthanasia;
c. Contribution to additional costs incurred by turkey processors due to additional rendering of turkey carcasses or turkey by-products;
d. To lessen the financial impacts incurred by processors due to the marketplace disruption or displacement caused by COVID-19, including changes in consumption levels or buying patterns, changes in levels of storage stocks, transportation costs or changes due to consumption of competitive meat products.
4Beginning on April 26, 2021 and continuing thereafter, no deductions in relation to the License Fee is permitted. All monies deducted in relation to a Declaration of Use must have been deducted in respect of turkeys marketed up to but no later than midnight on April 25, 2021.
The appeal is dismissed.
Released: January 26, 20