The presence of marketing boards in Canada today helps us to maintain a
reserve food supply for us. We are unlikely to run low on agricultural foods because the
quantities and prices can be controlled so that these things do not happen. There have
been many issues concerning the topic of Canadian agriculture producers being a part
of marketing boards. Agricultural producers join marketing boards to help coordinate the
marketing and sale of their various products. These agricultural marketing boards are
governed primarily by farmers who have been elected by their peers and serve on the
board for terms of at least one year. In Ontario, about sixty percent of the agricultural
products produced were marketed through twenty-one provincial marketing boards
which is about five billion dollars worth of farm commodities (Ted McMeekin, 2011).
Though some people believe there may be negative impacts resulting from the
emergence of marketing boards; the positive results highly outweigh anything that is
poorly affected. Some marketing boards allow for negotiation so everyone can come to
an equal consensus, price is discussed and set at an appropriate level for consumers
and for profit. This means that there are different types of marketing boards according to
the “marketing plan” of the specific board. There are four different types of marketing
boards in Canada which are national, provincial, inter-provincial, and crown
corporations. The activities and powers of different marketing boards vary quite acutely.
There are supervisory umbrella councils that are delegated powers and they are usually
more representative of the general public (Christopher Green, 1983).
In the supply management boards they assign output quotas to each of the
surrounding producers within that single given commodity. In essence what the board
does is sets a limit to the output production. This is a government regulation on output
production which can be seen as positive attribute because there will not be as much
over production. Government intervention is necessary in some industries, and the
agriculture business, especially in Canada, is one of them. The majority of agricultural
products have an inelastic demand, which makes agricultural prices highly susceptible
to changes when supplies fluctuate (Christopher green, 1983). Weather plays a major
role in the agriculture business. Wheat businesses for example, when planting their
inventory, have to do so from March to mid April and hope for relatively dry and mild
conditions. Also, in small communities there are many small farmers who have very little
bargaining power compared to the industries that transport and ship their product
across the globe. Now they have to compete with many other people who are selling to
a relatively small number of relatively large buyers (Christopher Green, 1983). The
marketing boards aids in leveling the playing field.
Along with the reduction of food surpluses marketing boards are viewed
politically as a means to provide consumers with the benefit of availability and variety of
the agricultural commodities. Many stakeholders support the argument that marketing
boards have improved the productivity and efficiency of the Canadian agriculture sector.
Marketing boards have also contributed to safeguard overall food supply and assuring
Canada of agricultural food self-sufficiency, particularly in times of political or
economical crisis. As a result, the quality of domestic agricultural products has improved
and has contributed to Canada’s economic well-being and consumer welfare. (Robert
D. Tamilia et al. 2007). Boards with supply management and/or price setting powers
have been accused of misusing their powers in ways which, “erode competitive
efficiency and generate inequities in income distribution (Robert D Tamilia et al., 2007).”
An important component of the response to these charges has been to emphasize the
positive contribution that their practices make to stability. Consumers are not familiar
with the intricate details of the agricultural market so it does not make sense for them to
be making important pricing and supply management decisions. These are more
appropriately left to the experts in their particular field. Each particular commodity has a
marketing board made up of professionals in that industry; it would be difficult to
incorporate consumers into these groups.
Potatoes in Alberta and PEI are a commodity in which the marketing board does
not demonstrate the power of price and supply controls. The producers in this industry
are part of a promotional marketing board. These boards are there to act as educational
and promotional tools (Christopher Green, 1983). The strongest marketing powers held
by boards are those that get to determine prices, when enforced by the power to apply
supply-controlling quotas. These limit entry of new producers and restrict the amount of
the product produced or marketed. Advocates note that these programs have reduced
variability in farm prices and increased producers' incomes (Robert D. Tamilia et al.
2007). Negotiating boards are a positive type of board for everyone. There job is to
negotiate prices between the processors and producers. The Veggie Growers
marketing board in Ontario is a prime example of a company who engages in these
types of boards. This would seem to be beneficial for everyone because the prices of
the tomatoes should be fair so that everybody can afford to buy it, plus make some
profit from the sale. Other types of marketing boards that are good for producers are
agency marketing boards and supply management boards. Agency marketing boards
act as an intermediary where sales and exchanges are made. In order to control prices
directly the board also has to have some control over supply. Many provincial hogmarkets are run by an agency marketing board. The issues pertaining to marketing
boards tend to arise with the agency-supply management marketing boards. Some
people believe that they possess too much power, and this may be the case with
national marketing boards who display these qualities as they control the products
quantities that come out of each province ultimately provinces will have to lower or raise
prices based on demand and transportation costs.
The question if it is good for Canadian agricultural producers to belong to
marketing boards to coordinate the marketing and sale of their commodities is a difficult
one. Based on the research one may think that they are, and can be beneficial, but only
to the producers. Though there are constraints in the economy as well as environmental
factors that make it hard for farmers to make a decent income, if any. Also, a comment
that is worth noting again is the general public does not have the expertise that the
members of a marketing board do so it may be hard to find be qualified and who could
be any benefit on the board. The difference in the type of marketing board is what it
really comes down to. Trying to compare a promotional marketing board that focuses
strictly on education and promotion to a supply-management board is simply not the
same. The national marketing boards with all the supply-management and pricing
power may have the potential more than others to become corrupt, but this does not
mean they necessarily will. Marketing boards are an important tool in the agriculture
business to allow success for the consumer, produces, and everybody in between. It is
good for agricultural producers to become a part of marketing boards, but depending on
the product or distribution , the type of marketing board will vary.
Robert D. Tamilia, Sylvain Charlebois, (2007) "The importance of marketing boards in
Canada: a twenty-first century perspective", British Food Journal, Vol. 109 Iss: 2, pp.119
– 144
Agricultural Marketing Boards in Canada: An Economic and Legal Analysis. Christopher
Green . The University of Toronto Law Journal ,Vol. 33, No. 4 (Autumn, 1983), pp. 407433 . Published by: University of Toronto Press .Article Stable URL:
http://www.jstor.org/stable/825670
Ted McMeekin. (November 23rd, 2011). Agricultural Marketing Boards in Ontario.
Retrieved from
http://www.omafra.gov.on.ca/english/farmproducts/factsheets/ag_market.htm