Quota Allocation

January 30, 2018

BC Egg Marketing Board (BCEMB) is completing a consultation to review our current method for allocating quota. The objective of this consultation is to challenge the strategies used for the allocation of growth quota in this thriving industry and changing marketplace while maintaining accountability to all shareholders within the SAFETI framework. Members of the public are invited to provide their feedback until February 28, 2018 at the following link:

 

Click Here to Start the Survey for Phase 1 of our BCEMB Quota Allocation Consultation

 

In 1967, provincial legislation called the BC Egg Marketing Scheme was passed. The scheme was later adopted nationally under the Canadian Egg Marketing Act (CEMA) and has become the foundation of what is known today as supply management. Under the scheme, a board was introduced with the mandate to oversee the production of eggs and match provincial demand with supply. Commercial farmers became known as registered producers. To control provincial supply, the board introduced quota, which is a licence that allows a registered producer to keep a maximum number of hens. If you held quota, you were guaranteed to be paid a fair price for the eggs produced under that quota.

In 2004, the Ministry of Agriculture commissioned a report titled Managing Specialty Agri-Food Products in BC's Supply Managed System. This report, prepared by George Leroux, became a foundational piece of the 2005 Specialty Review and many of the recommendations put forward in the report have been implemented by BC Egg and other supply managed commodities. A primary outcome of the specialty review was a commitment from the commodity boards to be market responsive. For BC Egg, that meant integrating specialty production into the supply management system. Thirteen years later, BC Egg has continued to maintain this market-responsive approach through various programs and remains committed to providing consumers with choice within a changing marketplace.

In the last 50 years, quota has been adjusted more than 25 times. There have been many decreases as well as increases and egg quota has consistently been adjusted using a pro-rata formula. In some cases, a portion of the quota has been withheld for specific programs while the majority was distributed pro-rata.

In the last 10 years, egg farmers have been fortunate as the consumption of eggs nationally has steadily risen which has resulted in numerous quota increases for BC egg farmers. Currently, BC Egg is holding back 10% of increases for our New Producer Program and allocating the remaining 90% pro-rata to BC Egg Registered Producers. BCFIRB placed a condition on the 2017 allocation that requires BC Egg to conduct a complete and thorough consultation with stakeholders before any future allocations will be approved.  In addition, BCFIRB requires that BCEMB's recommendations for quota allocations are supported with a consideration of how to increase industry efficiencies through the growth of new entrants, small producers and opportunities to support growing markets.

Allocations should foster:

  • Industry efficiencies throughout the entire sector;
  • Economic viability by enhancing the viability of the farm and promoting the quick utilization of growth quota;
  • Organizational capacity by encouraging a varied production mix that meets market demand;
  • Maintain and support BCEMB's Strategic Vision; and
  • Be equitable and fair to all quota holders while supporting growing markets, new entrants and small producers.

How the Consultation Will Work

As you can imagine, there are many ways that a quota allocation could be distributed. Each potential method affects individual producer segments and stakeholders differently. Quota allocation issues are multi-faceted and require thoughtful input so we have chosen to conduct this consultation in two phases. 

Phase 1:

The first phase of the consultation will seek feedback from producers about a variety of different distribution methods that can be used when a growth allocation is received. It will concentrate on the core principles behind each of the methods and include a brief analysis of each allocation method. The first phase will include a brief survey that will be sent to all industry stakeholders.

Phase 2:

With the information that is gathered from the Phase 1, the second phase will narrow the consultation to the finer details and look at balancing BCEMB allocation principles with programs that support BCEMB's strategic goals within the SAFETI framework.

The second phase will also be delivered in a survey format and will seek answers to specific questions on the allocation methods that are relevant to the consultation.

At the completion of the consultation, BCEMB will prepare and present a Quota Allocation Review to BCFIRB that incorporates the feedback received from producers throughout both stages of the consultation. Every opinion matters and your feedback will be incorporated into the consultation document so please participate!

 

Historical Links

Quota Approval Request – BCFIRB Response February 2. 2016
Quota Approval Request

January  19, 2016

Market Growth Allowance Program December 31, 2015

Special Eggs for Processing Program, 

October 5, 2015

BC Eggs for Processing Program

September 8, 2015

 Letter to John Les 

 June 8, 2015 

 Quota Approval Request

 June 8, 2015 

 BC FIRB Quota Allocation Prior Approval Decision

July 17, 2015