Contracting Protocols & Procedures
1.0 Three Contracting Criteria
1.1 Upon final approval there exists a legally binding purchase and sale contract directly between an Ontario producer and a processor inside or outside of the province.
Ontario Pork will execute the contract when the final form, with all parties signatures, is received at head office. A contract will not be executed if there is a material deviation from the prior approved form or if any party ot the contract is in contravention of the Farm Products Marketing Act or Regulations.
1.2 The contract between the producer, processor and Ontario Pork covers livestock for delivery at any time following 14 days from the date of contract approval by Ontario Pork.
1.3 The price discovery method used in a contract is any method EXCEPT one based upon the price established by Ontario Pork either through negotiations or via the open auction. In addition, a contract price discovery mechanism can not include direct reference to another Ontario contract.
2.0 Protocols and Procedures
2.1 Individual producers and processors who wish to enter into a contractual arrangement covering the purchase and sale of Ontario hogs are free to negotiate the terms and details of that proposed contract at any time.
2.2 A party wishing to enter into a contract shall send a proposed contract form to the Head Office of Ontario Pork for prior approval. Ontario Pork will review the contract form for prior approval and respond within 7 days.
2.3 When an agreement is reached, contracts that comply with the Ontario contracting criteria may be signed by the parties, subject to the approval process, such approval only to be withheld in the event the contract does not comply with the three contracting criteria.
2.4 Contract approval by Ontario Pork will not exceed 7 days from date of receipt of the proposed contract and the contract will not be valid until the minimum period of 14 days passes from the date of Ontario Pork approval.
2.5 When a contract is approved by Ontario Pork, Ontario Pork has the right to publish the terms and conditions of the contract in a generic format. In this context generic will mean that the name and location of any parties to the contract will not be disclosed or referenced in any way. Contract publication will be to both the producer and processor communities.
2.6 Any change to an existing contract will be considered a new contract.
2.7 A producer or processor can apply to Ontario Pork for exemption to the generic publication rules based on the existence of specific criteria which warrants confidentiality in the industry.
2.8 When contracts are published including a full and complete description of terms and details of the contract, Ontario Pork has the right to solicit additional demand for comparable contracts amongst the producer body in Ontario. If the processor requires additional hogs on substantially the same contractual arrangement, then the processor will review the list of potential producers with Ontario Pork with a view to select from the list. Acceptance of contractual arrangements between any individual producer and processor is left to the sole judgment of the individual producer and processor.
Supply Agreements, Protocols & Procedures
Meat and Bone Meal Provisions in Hog Purchase Agreement Extensions
Regulation 13-2004, effective October 13, 2004
Ontario Pork's Board has considered the request made by Maple Leaf Pork to modify Ontario Pork's position on Meat and Bone Meal.
Ontario Pork's Board of Directors has passed Regulation 13-2004 Amendment to Regulation 12-2004. Regulation 11-2004 Meat and Bone Meal Provisions in Hog Purchase Agreement Extensions remains in effect.
The amendment provided in Regulation 13-2004 pertains only to the expiration date for extensions prescribed in 12-2004. Contracts extended under Regulation 12-2004 may now be made for any length, provided that the end date is not later than April 15, 2004. For greater clarity, all terms of current contracts are to be unchanged by the extensions, except the end date of the agreement.
This regulation is made by Ontario Pork in the interest of furthering discussions on the larger issues facing our industry. In the interest of producers, it is expected that this amendment will prompt the offering of extensions to those producers with contracts expiring subsequent to August 3, 2004.
Ontario Pork remains committed to proactively defending producer interests as industry partners work to reach agreement on issues raised and will continue to make every effort to act in the best interests of the Ontario Pork industry.
For more information, contact the Ontario Pork Sales department at 1-877-668-7675.
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