General Order

BRITISH COLUMBIA HOG MARKETING COMMISSION

CONSOLIDATED ORDER OF JULY 1, 2002

Unofficial Version

Updated to April 1 2009

(Including Amendments to December 2009)

PART I – INTRODUCTORY

Purpose of the Order

The British Columbia Hog Marketing Commission (the “Commission” ) has approved this Consolidated Order for the purpose of promoting, controlling and regulating the production, buying, selling, shipping for sale, offering for sale or storage, and transportation, of hogs grown in the Province of British Columbia for processing.

Interpretation

  • In this and all Orders of the Commission, unless the context requires otherwise:

“Base Price” means the negotiated base price for Merchantable Hogs as determined in accordance with the formula set out in Schedule 1

“Boar” means a mature, male Hog having a Hot Dressed Carcass Weight equal to or greater than 99 kilograms.

“Commercial Producer” means a Person who operates a farm”

from which that person markets; or,
on which there are production facilities capable of producing for market,
300 or more Hogs annually.

“District” refers to one of the following four districts:

“District 1 – Vancouver Island”, consisting of Vancouver Island and the Gulf Islands;
“District 2 – Fraser Valley”, consisting of the part of the Province west of the 121st meridian of west longitude and south of the 50th parallel of north latitude, excepting Vancouver Island and the Gulf Islands;
“District 3 – Central Interior”, consisting of the part of the Province that is south of the 52nd parallel of latitude and not in District 2 or District 2; and,
“District 4 – Peace River”, consisting of the part of the Province north of the 52nd parallel of latitude.

“Hog” means a pig of any age grown in the Province of British Columbia for processing.

“Hot Dressed Carcass Weight” means the measured weight , on a Processor’s or Vendor’s scale, of a carcass derived from a Merchantable Hog after removal of the hair, toe nails and interdigital skin, alimentary canal, liver, spleen, genital tract and genitalia, heart, lungs, salivary glands and spinal cord.

“Lean Yield” means the estimated lean content of a dressed Merchantable Hog.

“Market Hog” means a Merchantable Hog having a Hot Dressed Carcass Weight:
Equal to or greater than 74 kilograms; and,
Less than 115 kilograms.

“Member” means a member of the Commission and includes the Chair of the Commission.

“Merchantable Hog” means a live Hog of merchantable quality for processing, but excludes a Boar

“Person” means a person as defined in the Interpretation Act, R.S.B.C. 1996, c238.

“Processor” means a Person who operates facilities from which that Person slaughters, freezes, cans, packs, preserves or changes the nature of Hogs by mechanical means or otherwise, and either sells, ships for sale, offers for sale or storage, or transports Hogs, or any article of food wholly or party derived therefrom.

“Producer” means a Person who operates a farm from which that Person markets one or more Hogs annually.

“Production Unit” means a farm from which a Producer markets Hogs.

“Production Year” means the 12 month period from September 1 in a calendar year to August 31 in the following calendar year.

“Registered Producer” means a Commercial Producer whose name has been entered and remains registered in the Commission’s register of Producers as a Commercial Producer in one or more Districts.

“Round Hog” means a Merchantable Hog having a Hot Dressed Carcass Weight:
Equal to or greater than 25 kilograms; and.
Less than 74 kilograms.

“Sow” means a mature, female, Merchantable Hog having a Hot Dressed Carcass Weight equal to or greater than 115 kilograms.

“Suckling Hog” means a Merchantable Hog having a Hot Dressed Carcass Weight less than 25 kilograms.

“Term Contract” means a contract between a Producer and a Processor or Vendor, for the sale and purchase of Merchantable Hogs over a specified term, irrespective of whether such contract is written, oral, partly in writing, partly oral, implied from the conduct of the Producer and the Processor or Vendor, or imposed upon the Producer and the Processor or Vendor by Order of the Commission.

“Transporter” means a Person who:
Owns or operate a vehicle or vehicles for the transportation of Hogs; and,
Holds, or is required to hold, a commercial motor license but does not include a Producer, who owns or operates a vehicle for the transport of Hogs produced by that Producer, and who does not operate such vehicle for the transportation of Hogs produced by any other Person.

“Valid License” means a current and subsisting license of the applicable class issued by the Commission to a Person in good standing with respect to each and every requirement therefor.

“Vendor” means any Person dealing in Hogs, whether by purchase or sale or on the basis of delivery on consignment for sale, but does not include Processors or Producers.

PART II – LICENSING

Requirement to Hold License

No Person shall act as a Producer, Processor, Vendor or Transporter unless in possession of a valid and subsisting license issued by the Commission, and no Person shall be relieved of compliance with this requirement in respect of any class of license on the grounds that such Person is the holder of a valid and subsisting license of another class.

License Classes and Fees

Every application for a license must be made to the Commission in the required form with the required license fee, as follows:
Producer License: $ 100.00 per Production Year
Processor License: $25.00 per Production Year
Vendor License: $25.00 per Production Year
Transporter License: $25.00 per Production Year

General Conditions

It is a condition of issuance and maintenance of every license that the applicant or holder complies with the Orders of the Commission from time to time in force and all applicable legislation and regulations.
One Producer license may be issued with respect to more than one Production Unit
No license shall be issued to any individual who is under the age of nineteen years, or to any corporation controlled by individuals under the age of nineteen years, or to any partnership with respect to which any individual member is under the age of nineteen years.
Where Persons carry on business in partnership, each with the other, a Valid License may be issued by the Commission in the names of each of the partners and in the business name carried on by those partners, if any. Such license is subject to cancellation upon order of the Commission in the event of a change in the membership of the partnership with respect to a Person or Persons having an interest of 50% or more in the partnership
Where a Valid License has been issued by the Commission to a corporation, such license is subject to cancellation upon Order of the Commission in the event of a change in the ownership, direct or indirect, of the majority voting shares of the corporation.

Renewal

At the commencement of a Production Year, the Commission will renew licenses upon receipt of the prescribed application and license fee and registration fee, where applicable, and provided the licensee has maintained compliance with all Orders of the Commission from time to time in force and all applicable legislation and regulations

Register of Producers

A Commercial Producer will be entered into the Commission’s register of Producers as a Commercial Producer upon meeting the following conditions:
Being the holder of a Valid Producer License; and,
Making annual payment to the Commission of a registration fee of $100.00 each Production Year.

PART III – PRICES AND METHOD OF PAYMENT

Payment of Base Price for Merchantable Hogs Supplied Under a Term Contract

Subject to subsection (2), every Processor and Vendor shall pay for Merchantable Hogs supplied under a Term Contract as follows:
Sucking Hogs – not less than 100% of the Base Price plus $1.10 per kilogram of Hot Dressed Carcass Weight;
Round Hogs – not less than 100% of the Base Price plus $1.10 per kilogram of Hot Dressed Carcass Weight
Market Hogs – not less than 100% of the Base Price as adjusted pursuant to:
the Lean Yield Bonus / Discount Rules set out in Schedule 2; and,
the Carcass Bonus / Discount Rules set out in Schedule 3, including either of Weight Bonuses / Discounts – PLan “A” or Weight Bonuses / Discounts – Plan “B” as agreed between the Producer and the Processor or Vendor pursuant to the Term Contract;
Sows – not less than the price negotiated or determined by the Commission from time to time.
The Base Price is F.O.B. the Processor’s or Vendor’s scale, as the case may be.

Time and Manner of Making Payment

Every Processor and Vendor shall pay for Merchantable Hogs
In accordance with the terms agreed from time to time between the Processor or Vendor and the Producer, or the Commission as the Producer’s designee;
Within seven (7) days of delivery by the Producer to the Processor or Vendor; and,
Directly to the Producer, the net amount owing after deduction of Commission levies
The Commission may in writing exempt a Processor or Vendor from the requirements of Sections 8 and 9 in whole or in part, for such time, and on such conditions as the Commission may determine in its sole discretion.

PART IV – LEVIES

Producer Levies

Levies are fixed and imposed on each Producer as set out in Schedule 4, irrespective of whether such Producer is the holder of a Valid License issued by the Commission.

Processor and Vendor Responsibility Regarding Producer Levies

Every Processor or Vendor, before making payment directly to a Producer, shall deduct from the total payable to such Producer the amount of levies assessed against the Producer under subsections 1(a) and (b) of Schedule 4. Such levies shall be:
remitted to the Commission forthwith by each Processor or Vendor; and,
accompanied by the written statement in a form prescribed by the Commission.
In the event levies so assessed against a Producer are greater than the total amount payable to the Producer by the Processor or Vendor, the deficient levy amount shall be added to subsequent levy assessments, and the Processor or Vendor shall deduct from subsequent payments to that Producer the aggregate amount of such levies assessed against that Producer, and shall forthwith thereafter remit the amount so deducted to the Commission.
Should any Processor or Vendor
fail to deduct from amounts payable to a Producer the levies assessed against that Producer under subsections 1 (a) and (b) of Schedule 4; or
fail to remit such levies to the Commission
then at the Commission’s direction, any other Processor or Vendor who has received Hogs from the defaulting Processor or Vendor shall deduct from the payment to the defaulting Processor or Vendor the levies due to the Commission and shall immediately remit such levies to the Commission.

PART V – RECORDS AND INSPECTION

Books, Records and Accounts

Every Producer, Processor, Vendor and Transporter shall keep in the English language complete and accurate books, records and accounts of all matters relating to the production, buying, selling, shipping for sale, offering for sale or storage, and transportation, of Hogs.
All books, records and accounts required to be kept under subsection (1) must at all times be available for inspection by the Commission, or any officer or auditor of the Commission, or any other Person as may be authorized by the Commission from time to time to make an enquiry or report.
Every Producer, Processor, Vendor and Transporter shall retain and have available for inspection by the Commission all original records, whether contained in books or accounts, for a period of three years.

Licensees to Furnish Information and permit Inspection

Every Person licensed by the Commission shall, upon request, furnish to the Commission any information relating to the production, buying, selling, shipping for sale, offering for sale or storage, and transportation, of Hogs, and shall make specific answers to any questions submitted to that Person by any Member, employee or agent of the Commission for that purpose, and shall permit any Member, employee or agent of the Commission to search vehicles in which Hogs are transported, and to inspect all Production Units or business premises owned, occupied or controlled by such Person.

Grading Tickets

Every Processor and Vendor shall record the Hot Dressed Carcass Weight, lean measurement, fat measurement, trimable demerit weights and codes, and such other information as the Commission may from time to time direct, for every Merchantable Hog delivered by a Producer.
Every Processor and Vendor shall submit all grading, price and payment data, including base price, bonuses and deductions, for each lot of market Hogs processed by a Processor or Vendor to the Commission as the Commission may from time to time direct.
Every Producer shall provide the Commission with all data as outlined in Section 14(1).
Every Producer shall provide the Commission with all data concerning the price paid by a Processor or Vendor relating to product outlined in Section 14(1).

PART VI – PROHIBITIONS

Producer

No Producer shall engage in the production, buying, selling, shipping for sale, offering for sale or storage, or transportation, of Hogs for processing, unless that Producer is the holder of a Valid License.

Processor

No Processor shall receive Hogs from a Producer, Vendor or Transporter who is not the holder of a Valid License.
No Processor shall pay for Merchantable Hogs supplied under a Term Contract at less than the amount prescribed by this Consolidated Order.

Vendor

No Vendor shall receive Hogs from a Producer, Processor or Transporter who is not the holder of a Valid License.
No Vendor shall pay for Merchantable Hogs supplied under a Term Contract at less than the amount prescribed by this Consolidated Order.

Transporter

No Transporter shall receive Hogs from a Producer, Processor or Vendor who is not the holder of a Valid License.

PART VII – COMPLIANCE

Suspension or Cancellation

In addition to any other remedies available to the Commission in respect of a contravention of an Order of the Commission, the Natural Products Marketing (B.C.) Act R.S.B.C. c. 330, the British Columbia Hog Marketing Scheme, B.C. Reg. 109/80, or any other applicable legislation and regulations, the Commission may suspend or cancel the license held by a Person determined by the Commission to be in contravention.

Where a license has been suspended for a definite period for a contravention and that contravention has not been rectified within the period of suspension and the contravention continues, the Commission may forthwith cancel the license.

PART VIII – MISCELLANEOUS

Conflict of Interest

Members of the Commission shall conduct themselves in a manner consistent with the Conflict of Interest Rules set out in Schedule 5.

Revocation and Transition

This Consolidated Order supersedes and replaces all Orders made by the Commission prior to the effective date hereof and all such prior Orders are hereby revoked, but revocation shall not affect any contraventions committed or any penalties incurred under the Orders so revoked.

Commencement

This Consolidated Order comes into effect on July 1, 2002.

DATED AT ABBOTSFORD, BRITISH COLUMBIA, THIS FIRST DAY OF JULY, 2002

BRITISH COLUMBIA HOG MARKETING COMMISSION

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SCHEDULE 1

BASE PRICE FORMULA

The base price for Merchantable Hogs is expressed as a price per kilogram of Hot Dressed Carcass Weight, and is determined by the Commission from time to time according to the following formula:
calculate the simple average of the previous midday week’s Iowa-Southern Minnesota carcass Hog price (49 – 51% 185 lb) as quoted by the United States Department of Agriculture;
multiply by 0.74 to convert to live weight price;
divide by 0.8 to convert Canadian Hot Dressed Price;
convert to Canadian dollars by multiplying the previous week’s average price (Bank of Canada noon rate) of a US dollar, expressed in Canadian dollars;
multiply by 2.20462 to convert to kilograms;
divide by 100 to convert to Canadian dollars per kilogram;
add $0.01 per kilogram.

SCHEDULE 2

LEAN YIELD BONUS / DISCOUNT RULES

Lean Yield bonuses or discounts shall be applied to the Base Price for Merchantable Hogs having a Hot Dressed Carcass Weight (including trimable demerits) from 74 kilograms up to and including 99.9 kilograms, according to the following table:

Lean Yield $/kg Lean Yield $/kg Lean Yield $/kg Lean Yield $/kg
<55.9 -0.210 58.5 -0.054 61.1 0.102 63.7 0.258
56.0 -0.204 58.6 -0.048 61.2 0.108 63.8 0.264
56.1 -0.198 58.7 -0.042 61.3 0.114 63.9 0.270
56.2 -0.192 58.8 -0.036 61.4 0.120 64.0 0.276
56.3 -0.186 58.9 -0.030 61.5 0.126 64.1 0.282
56.4 -0.180 59.0 -0.024 61.6 0.132 64.2 0.288
56.5 -0.174 59.1 -0.018 61.7 0.138 64.3 0.294
56.6 -0.168 59.2 -0.012 61.8 0.144 64.4 0.300
56.7 -0.162 59.3 -0.006 61.9 0.150 64.5 0.306
56.8 -0.156 59.4 0.000 62.0 0.156 64.6 0.312
56.9 -0.150 59.5 0.006 62.1 0.162 64.7 0.318
57.0 -0.144 59.6 0.012 62.2 0.168 64.8 0.324
57.1 -0.138 59.7 0.018 62.3 0.174 64.9 0.330
57.2 -0.132 59.8 0.024 62.4 0.180 65.0 0.336
57.3 -0.126 59.9 0.030 62.5 0.186 65.1 0.342
57.4 -0.120 60.0 0.036 62.6 0.192 65.2 0.348
57.5 -0.114 60.1 0.042 62.7 0.198 65.3 0.354
57.6 -0.108 60.2 0.048 62.8 0.204 65.4 0.36
57.7 -0.102 60.3 0.054 62.9 0.210 65.5 0.366
57.8 -0.096 60.4 0.060 63.0 0.216 65.6 0.372
57.9 -0.090 60.5 0.066 63.1 0.222 65.7 0.378
58.0 -0.084 60.6 0.072 63.2 0.228 65.8 0.384
58.1 -0.078 60.7 0.078 63.3 0.234 65.9 0.390
58.2 -0.072 60.8 0.084 63.4 0.240 66.0 0.396
58.3 -0.066 60.9 0.090 63.5 0.246 >66.0 0.402
58.4 -0.060 61.0 0.096 63.6 0.252

SCHEDULE 3

CARCASS BONUS / DISCOUNT RULES

Demerits

The weight of any trimable demerit (pathological or other farm condition) will be deducted from the carcass weight in accordance with theMeat Hygiene Manual of the Canadian Food Inspection Agency.

Carcasses with demerits under demerit codes 1, 2, 3 and 10 will be priced at 90% of the calculated carcass value including Lean Yield and weight bonuses or discounts.

Ridglings will be priced at 60% of the calculated carcass value, including Lean Yield and weight bonuses or discounts.

Weight Bonuses / Discounts – Plan A

Merchantable Hogs with a Hot Dressed Market Weight of less than 60 kilograms (including trimable demerits) shall be valued at 10% of the base price.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 60 kilograms but less than 78 kilograms (including trimable demerits) shall receive a discount of $0.25 per kilogram.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 83 kilograms but less than 89 kilograms (including trimable demerits) shall receive a bonus of $0.02 per kilogram.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 96 kilograms but less than 115 kilograms (including trimable demerits) shall receive a discount of $0.15 per kilogram.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 115 kilograms (including trimable demerits) shall receive a discount of $0.30 per kilogram.

Weight Bonuses / Discounts – Plan B

Merchantable Hogs with a Hot Dressed Market Weight of less than 60 kilograms (including trimable demerits) shall be valued at 10% of the base price.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 60 kilograms but less than 74 kilograms (including trimable demerits) shall receive a discount of $0.25 per kilogram.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 79 kilograms but less than 85 kilograms (including trimable demerits) shall receive a bonus of $0.02 per kilogram.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 99 kilograms but less than 115 kilograms (including trimable demerits) shall receive a discount of $0.15 per kilogram.

Merchantable Hogs with a Hot Dressed Carcass Weight of more than 115 kilograms (including trimable demerits) shall receive a discount of $0.30 per kilogram

SCHEDULE 4

PRODUCER LEVIES

  1. Subject to subsection (2) levies are fixed and imposed upon each Producer as follows:
    for Producers situate in Districts 2 or 3 – $1.00 per Market Hog; $1.00 per Boar or Sow; and $0.50 per Round Hog, received by a Processor or Vendor;
    for Producers situate in Districts 1 or 4 – $1.00 per Merchantable Hog received by a Processor or Vendor.

Levies are fixed and imposed upon each Producer supplying Hogs to a Processor or Vendor who has been granted an exemption pursuant to Section 9.1 of the Consolidated Order as follows:
for Producers situate in Districts 2 or 3 – $1.00 per Market Hog; $1.00 per Boar or Sow; and $0.50 per Round Hog; received by a Processor or Vendor;
for Producers situate in Districts 1 or 4 – $1.00 per Merchantable Hog received by a Processor Vendo

SCHEDULE 5

CONFLICT OF INTEREST RULES

Definition 

A “conflict of interest” is any situation where:
a Member’s personal interests, or
those of a close personal friend, family member, business associate, corporation or partnership in which a Member holds a significant interest, or a person to whom the Member owes an obligation;
could influence the Member’s decision and impair the Member’s ability to:
fulfill the objectives of the British Columbia Hog Marketing Scheme; or
represent the Commission fairly, impartially and without bias.

General Duties

Unless authorized to do so by the Commission, a Member may not:
act on behalf of the Commission in any matter where the Member is in a conflict of interest or appears to be in a conflict of interest; or
use that Member’s position, office or affiliation in a way which places that Member in a conflict of interest.

The “appearance of a conflict of interest” occurs when a reasonably well informed person properly could have a reasonable perception that a Member is making decisions on behalf of the Commission that promote that Member’s personal interests of those of a person described in subsection 1(b).

What To Do About Conflict of Interest Situations

A Member must immediately disclose a conflict of interest in writing to the Commission, or to a person the Commission designates. It is important to make the disclosure when that conflict first becomes known. If the Member does not become aware of the conflict until after the transaction is concluded, nevertheless the Member must still make the disclosure immediately.

A Member must declare the conflict of interest situation when that Member becomes aware of it. A Member may present information on the situation involving conflict of interest, but the Member must withdraw from discussion and decision on the situation.

If a Member is in doubt about whether that Member is or may be in a conflict of interest , that Member must request the advise of the Commission or a person the Commission designates.

Unless otherwise directed, a Member must immediately take steps to resolve the conflict or remove the suspicion that it exists.

More About Avoiding a Conflict of Interest

A Member must not:
use that Member’s relationship with the Commission to confer a particular benefit on that Member, the Commission or a person described in subsection 1(b). This duty does not prevent a Member or anyone else from transacting business with other people connected with the Commission.
personally benefit from any transaction involving the Commission except in unique situations, authorized by the Commission.
use that Member’s position with the Commission to solicit the Commission’s clients for a personal business or one operated by a person described in subsection 1(b). This duty does not prevent a Member or anyone else from transacting business with other people connected with the Commission; or
indirectly benefit from any transaction involving the Commission except in unique situations, authorized by the Commission.

Persons who are not Members and who are in a position to influence decisions made on behalf of the Commission, shall be treated by the Commission as if they were Members.

An indirect benefit is:
a benefit derived by a close friend, family member, business associate, or a corporation or partnership in which a Member holds a significant interest; or
a benefit which advances or protects a Member’s interests although it may not be measurable in money.

Use of Commission Property and Commission Business Opportunities

A Member must have authorization from the Commission
to use property owned by the Commission fro personal purposes; or
to purchase Commission property unless it it through usual channels of disposition equally available to other Registered Producers.

A Member must not take personal advantage of an opportunity available to the Commission unless:
it is clear that the Commission has irrevocably decided against pursuing the opportunity; and
the opportunity is equally available to other Registered Producers.
A Member must maintain compliance with the Commission’s Consolidated Order or step aside from active participation until the situation is resolved.

Commission Information

“Commission information” is information that is:
acquired solely by reason of involvement with the Commission and which the Commission is under obligation to keep confidential; or
designated by the Commission as confidential.

A Member must use Commission information only for Commission purposes, within the terms and provisions of the Freedom of Information and Protection of Privacy Act.

A Member must not use the Commission information for personal benefit.

A Member must protect the Commission information from improper disclosure.

A Member must report to the Commission, or to a person the Commission designates, any incident of abuse of Commission information.

A Member may divulge Commission information if:
that Member is authorized by the Commission to release it; and
it is to a person who has a lawful right to the information.

If a Member is in doubt about whether Commission information may be released, that Member must request advice from the Commission or from a person the Commission designates.

Rules about Gifts

A Member may accept a gift made to that Member because of that Member’s involvement in the Commission in the following circumstances:
the gift has no more than $100 value;
it is the normal exchange of hospitality or a customary gesture of courtesy between persons doing business together;
the exchange is lawful and in accordance with local ethical practice and standards; and
the gift could not be construed by an impartial observer as a bribe, pay off or improper or illegal payment.

A Member personally may not use Commission property to make a gift, charitable donation or political contribution to anyone on behalf of the Commission. Any gift used as an exchange of business hospitality or as a customary gesture of courtesy must not have a value of in excess of $100, without prior authorization of the Commission.

Designates

For purposes of sections 4, 5, 6 and 18, the Commission designate is the Commission Chair or, in the case of the Chair reporting, the General Manager.

For purposes of Section 20, the Commission designate is the General Manager of the Commission.