PAGE 10 –– DECEMBER 2013 THE GROWER
A step forward, two steps backward
RAY DUC CHAIR, OFVGA The good things that grow in Ontario just got a major boost with the passing of the Local Food Act. This bill was first read in the legislature in March 2013
and received royal assent on November 6, 2013, a fairly quick trip through the legislative process, which can be onerous and can take years. Thank you to all members of the legislature for getting this bill in place in a timely manner. Over the next three years $30 million will be invested by the province to create jobs and support innovation in the agri-food sector. Currently the production and processing of food in Ontario employs 740,000 people and contributes $34 billion to the provincial economy. The new legislation -- the first of its kind in Canada -will make more local food available in markets, restaurants, schools and institutions. A requirement was written into this
bill that states the government will produce an annual report. The report will highlight initiatives undertaken by government and industry that help achieve goals and growth targets set by the agri-food sectors in partnership with government. Local food awareness and education is another positive aspect of this Act. The Government will annually proclaim the first week in June “Local Food Week.” During this week local food will be highlighted in all media across the province. Awareness of local food will be enhanced through the distribution of literature, maps and schedules of local events. The Local Food Act will also ensure that locally produced food does not go to waste. Farmers
who have produce in excess of their markets can now donate that produce to food banks and receive a tax credit equal to 25 per cent of the wholesale value of the foods donated. This is a winwin for the 400,000 people who use food banks in Ontario and will benefit producers who will receive some return for their surplus crops. There is not any single component of this bill that will propel the agri-food industry into rapid growth but is definitely another step in the right direction. The fact remains that price is the largest factor in the minds of consumers when making food-purchasing decisions. However, I do believe that if we take enough of these small steps forward we will
see the broader benefits of buying local and not rely on imports for one of our most basic needs, food. Between writing this column and submitting it some sad news came out of Leamington Ontario. The Heinz tomato plant will close next summer after 100 years of processing locally grown tomatoes. This closure is the latest on a long list of plant closures in Ontario. Heinz leaving Leamington highlights the need for action by the government. If the bleeding is not stopped there will be no locally grown, locally processed food for the consumer to purchase. One step forward, two steps backward!
Will horticulture be priced out of business?
ART SMITH CEO, OFVGA Over the past couple of months the advisory panel on minimum wage has been touring Ontario and listening to presentations from concerned citizens regarding Ontario’s minimum wage. They have heard both extremes from folks advocating for $14 to $15 an hour right through to the position that Ontario should not have a minimum wage at all. These positions are not surprising and they show just how diverse the thoughts are
on the issue. We also made a presentation to the panel as did a number of other agricultural organizations all of whom spoke about the disproportionate hit that agriculture would take if there is to be a significant increase in the minimum wage rate. The purpose of the panel is to make recommendations to the government on a mechanism or process for increasing the minimum wage rate in the future. With that in mind and even though many of our members cannot afford any wage increase, a statement from us saying no increase would have been futile. Instead we showed how the sector had not recovered from the last round of increases that took the wage rate up over 28 per cent and we showed how the current rate has surpassed inflation. We explained that we are price takers in this sector and that there is no mechanism to claw back these additional expenses from the marketplace. For many in our society they
simply cannot grasp that concept. What do you mean you can’t get your costs back? How can you stay in business? For others it’s ‘if you are an employer you can afford it.’ Horticulture has always been a price taker but we didn’t always compete against product from foreign countries laid in here below our cost of production. Wholesalers and retailers alike have always wanted the best deal but they also needed to keep you, the farmer, in business because they needed you next week and next year. That has all changed with global trade and if we were not here, their shelves would still be full. One of the questions that came out from the panel was with regards to the Seasonal Agricultural Worker Program (SAWP) and how it is affected by minimum wage increases in Ontario. When we attempted to explain, we were told by one of the panelists that we were wrong and that the SAWP was exempt. Fortunately the deputy Minister
of Labour was in the room and she cleared up that issue when she explained the policy of Human Resources and Skills Development Canada in Ottawa is that the rate paid to offshore workers is the greater of the prevailing rate or the minimum wage of the province. This was a critical moment as it clarified and tied the two programs together. So very clearly the myth that minimum wage increases in Ontario would have little impact on our sector has been straightened out. Wage increases are inevitable but it will be how they are determined that will make all the difference to horticulture producers in the future. We made it clear that it is the big hikes in minimum wage rate like those experienced in 2008, 2009 and then again in 2010 that have the most devastating impact on the sector. We just cannot recover those costs. While the consumer may expect some price increases they rebel when those increases are too great.
As mentioned above, the purpose of the panel is to make a recommendation to the government as to process and not spell out a figure for minimum wage. Nonetheless, the government is going to make some decisions. There are those calling for huge increases and those that simply cannot afford any increase. With a spring budget and the possibility of an election just around the corner, the action taken by the government may very well come out somewhere in the middle. This would be devastating to our sector. Our ask is that the process taken in the future be based on the consumer price index (CPI) but should the government decide that there needs to be a significant increase in the minimum wage rate then we ask that a separate rate for agriculture be established; one that recognises the realities of our sector, one that simply follows inflation or CPI. For what it’s worth, it’s the way I see it.
May you celebrate This beautiful season With joy in your home And peace in your world. Photo courtesy of Quail’s Gate, Okanagan Valley, British Columbia STAFF Publisher: Ontario Fruit and Vegetable Growers’ Association Editor: Karen Davidson, 416-252-7337, kdavidson@ecomente.ca Production: Carlie Robertson, ext. 221, production@thegrower.org Advertising: Herb Sherwood, 519-380-0118, hsherwood@cogeco.ca
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ONTARIO FRUIT AND VEGETABLE GROWERS’ ASSOCIATION BOARD OF DIRECTORS 2013 MANAGEMENT COMMITTEE Chair Vice-Chair Fruit Director Veg Director Director
Ray Duc, Niagara-on-the-Lake Jason Verkaik, Bradford Norm Charbonneau, Port Elgin Jan Vander Hout, Waterdown Brian Gilroy, Meaford
BOARD OF DIRECTORS Apples Fresh Vegetable - Other Tender Fruit ON Asparagus Grws’. Mkg. Brd. GGO/Fresh Grape Growers Fresh Vegetable - Muck ON. Potato Board Small Fruit/Berries ON. Ginseng Growers’ Greenhouse Greenhouse
Brian Gilroy, Meaford Mary Shabatura, Windham Centre John Thwaites, Niagara-on-the-Lake Jason Ryder, Delhi Ray Duc, Niagara-on-the-Lake Jason Verkaik, Bradford Mac James, Leamington Norm Charbonneau, Port Elgin Ken Van Torre, Burford Jan Vander Hout, Waterdown Don Taylor, Durham
OFVGA SECTION CHAIRS Crop Protection Research Property Labour Safety Nets CHC
Charles Stevens, Newcastle Harold Schooley, Simcoe Brian Gilroy, Meaford Ken Forth, Lynden Mark Wales, Alymer Murray Porteous, Simcoe