Manitoba Chicken Broiler Producers Marketing Plan Regulation

Manitoba Chicken Broiler Producers Marketing Plan Regulation, M.R. 246/2004 The Farm Products Marketing Act , C.C.S.M. c. F47 Regulation 246/2004 Registered December 30, 2004 bilingual version (HTML) Table of Contents Section DEFINITIONS AND INTERPRETATION 1 Definitions and interpretation PURPOSES AND APPLICATION OF THIS PLAN 2 Purpose and application MANITOBA CHICKEN PRODUCERS 3 Continuation of Manitoba Chicken Producers 4 Transitional board 5 Administration by-law 6 Officers 7 Remuneration 8 Committees 9 Duties of the board 10 Fiscal year 11 Audit GENERAL POWERS OF THE BOARD 12 General production and marketing powers of the board SPECIFIC POWERS OF THE BOARD 13 Registration and licensing of producers and hatchery operators 14 Information 15 Transportation 16 Exemptions 17 Directed marketings 18 Pooling 19 Price orders NOTICE REQUIREMENTS FOR THE SUPPLY OF CHICKEN BROILERS 19.1 Definitions and interpretation 19.2 Notice requirement for selling regulated product to a different processor 19.3 Notice requirements for selling regulated product to processors in different proportions 19.4 Notice requirements if no purchasing relationship on the coming into force of section 19.5 Notice requirements 19.6 Further supply changes 19.7 Baseline reports by the board 19.8 Processor not to purchase product from a non-compliant producer 19.9 Levies imposed on producers for non-compliance 19.10 Live weight reference REGULATIONS REQUIRING COUNCIL APPROVAL 20 Approval of the Manitoba council 21 Fees and levies 22 Penalties ORDERS REQUIRING COUNCIL APPROVAL 23 Approval of the Manitoba council 24 Quotas 25 Orders re marketing of chicks CERTIFICATION OF FACILITIES 26 Certification of facilities GENERAL PROVISIONS 27 General requirements for regulations and orders 28 Partnerships and shared arrangements 29 Non-application TRANSITIONAL 30 Orders and regulations of board continued REPEAL AND COMING INTO FORCE 31 Repeal 32 Coming into force DEFINITIONS AND INTERPRETATION Definitions 1(1) The following definitions apply in this regulation. "administration by-law" means the administration by-law referred to in section 5. (« règlement administratif ») "board" means Manitoba Chicken Producers. (« office de producteurs ») "broiler breeder laying hen" means a hen used in, or intended to be used in, the production of broiler hatching eggs. (« poule reproductrice de poulets à griller ») "broiler breeder laying hen quota" means the maximum number of broiler breeder laying hens that may be raised or kept at any time or in any place by a registered producer, as determined by the board. (« quota de poules reproductrices de poulets à griller ») "broiler hatching egg" means an egg that is suitable for incubation and is to be hatched as a chick for chicken broiler production. (« œuf d'incubation de poulets à griller ») "broiler hatching egg marketing quota" means the quantity of broiler hatching eggs that a registered producer has been authorized to market during a specific period of time by the board. (« quota de commercialisation d'œufs d'incubation de poulets à griller ») "broiler hatching egg producer" means, subject to subsection (2), a person engaged in the production of broiler hatching eggs. (« producteur d'œufs d'incubation de poulets à griller ») "chick" means a chicken broiler that is less than 10 days old. (« poussin ») "chicken broiler" means a chicken of any variety, grade or class that is not more than five months old, not raised for egg production, and includes broilers, fryers and roasting chickens. (« poulet à griller ») "chicken broiler producer" means, subject to subsection (2), a person engaged in the production of chicken broilers within the province. (« producteur de poulets à griller ») "chicken broiler quota" means the quantity of chicken broilers that a registered producer has been authorized to produce or market during a specific period by the board. (« quota de poulets à griller ») "designated representative" means an individual appointed in accordance with the administration by-law by a registered producer that is a corporation or a partnership, to attend meetings and vote on behalf of the corporation or partnership, and to exercise the privileges described in the by-law. (« représentant désigné ») "facility" means any building, structure, equipment or land used for the production of a regulated product. (« installation ») "hatchery" means any building equipped with an incubator used for incubation of broiler hatching eggs, including any land or buildings that are adjacent and used in connection with this purpose. (« couvoir ») "hatchery operator" means a person engaged in the operation of a hatchery within the province. (« couvoirier ») "hen" means the female of any class of domestic chicken belonging to the species Gallus domesticus. (« poule ») "marketing" means selling, offering for sale, preparing for sale, buying, storing, grading, assembling, packing, transporting, processing, advertising or financing, and includes the processing of a regulated product by a producer. (« commercialisation ») "marketing quota" means the quantity of a regulated product that a registered producer has been authorized to market during a specified period of time by the board. (« quota de commercialisation ») "processing" includes killing. (« transformation ») "produce" means to raise or to keep chicken broilers, including any activity in preparing a live chicken broiler for market, or to produce broiler hatching eggs. (« produire ») "producer" means a chicken broiler producer or a broiler hatching egg producer or both, as the context may require. (« producteur ») "quota" means a chicken broiler quota, a broiler breeder laying hen quota or a broiler hatching egg marketing quota, or any two or all of them, as the context may require. (« quota ») "registered producer" means a producer who is duly registered with the board, and whose registration is in good standing. (« producteur inscrit ») "regulated product" means a chicken broiler raised or kept in Manitoba, or a broiler hatching egg produced in Manitoba. (« produit réglementé ») "transportation" includes the gathering, haulage, movement or relocation of live chicken broilers or broiler hatching eggs within Manitoba. (« transport ») 1(2) The definitions "broiler hatching egg producer" and "chicken broiler producer" do not include a hatchery operator solely in its capacity of operating a hatchery. 1(3) A reference in this plan to an "annual general meeting" or an "annual or special general meeting" means a meeting of registered producers and designated representatives, as provided for in the administration by-law. PURPOSES AND APPLICATION OF THIS PLAN Purpose and application 2(1) The general purpose of this plan is to provide for the promotion, regulation and management of the production and marketing of the regulated product, by the board, within Manitoba. 2(2) The specific purposes of this plan are: (a) to maintain fair and equitable prices for the regulated product for producers; (b) to develop and maintain systems for the orderly production and marketing of the regulated product; (c) to provide a uniform high quality of the regulated product for the market; (d) to maintain adequate advertising and promotion of the regulated product; (e) to encourage a continuous supply of the regulated product for trade; (f) to maintain an adequate supply of broiler hatching eggs for hatcheries; (g) to gather, compile and distribute statistical information related to the production and marketing of the regulated product. 2(3) This plan applies to all of Manitoba. MANITOBA CHICKEN PRODUCERS Continuation of Manitoba Chicken Producers 3(1) "Manitoba Chicken Producers", continued by Manitoba Regulation 37/2004, is continued as a board. 3(2) The board is to consist of a minimum of five and a maximum of nine members, as may be specified in the administration by-law, who at all times must be registered producers or designated representatives. 3(3) The members are to be elected by and from the registered producers and designated representatives, in accordance with the administration by-law. Beginning January 1, 2008, at least two of the elected members must be broiler hatching egg producers. 3(4) A majority of the members constitutes a quorum for the transaction of business of the board. Transitional board to include hatching egg producer appointees 4(1) Despite subsections 3(2) and (3), until December 31, 2007, the board may include up to two additional members appointed by the Lieutenant Governor in Council. These additional members must be broiler hatching egg producers. 4(2) Members appointed under this section are to be appointed for the term fixed in the order appointing them, but no order shall fix a term that expires later than December 31, 2007. 4(3) After the term of a member appointed under this section expires, the member continues to hold office until a successor is appointed or elected, or the appointment is revoked. Administration by-law 5(1) The administration by-law that is in effect in accordance with section 4 of the Manitoba Chicken Broiler Producers Marketing Plan Regulation , Manitoba Regulation 37/2004, on the day this section comes into force remains in effect until it is repealed, replaced or amended in accordance with this section. 5(2) The administration by-law may be repealed, replaced or amended to otherwise provide for (a) the qualification of individuals to be appointed designated representatives; (b) the method of appointing designated representatives; (c) the establishment of districts; (d) the method of giving notice of and the holding of meetings; (e) the election of members of the board, including the election of broiler hatching egg producers in accordance with subsection 3(3); and (f) such other matters related to the conduct of meetings and the governance of the board as are considered necessary for the administration of this plan. 5(3) The administration by-law may by resolution be repealed, replaced, or amended by a majority vote of those present and voting at an annual or special general meeting, if written notice has been mailed to each registered producer or designated representative at least seven days before the meeting, providing a copy of the resolution setting out the proposed repeal, replacement, or amendment, or a summary of the proposal. 5(4) The administration by-law may be repealed, replaced, or amended at an annual or special general meeting, without the notice required in subsection (3), upon a resolution receiving the affirmative vote of at least 75% of those present and voting at such a meeting. 5(5) A resolution proposing the repeal, replacement, or amendment of the administration by-law must be expressed to be subject to the approval of the Manitoba council, and does not take effect until a copy of the resolution is filed with the Manitoba council and approved by it. Officers 6(1) Members of the board must meet without delay after each annual general meeting, and elect a chair and a vice-chair from among their number. The board may appoint a secretary, a treasurer and any other officers that it considers necessary, who need not be members of the board. 6(2) The chair, or in the chair's absence the vice-chair, must call and preside at all meetings of the board and at all annual or special general meetings. 6(3) The officers of the board must carry out the duties that are assigned to them by the board. Remuneration 7(1) The chair, officers and other members of the board or any committee appointed by the board may be paid remuneration in an amount that may be fixed by resolution of the board. 7(2) A resolution to pay remuneration is not effective unless it is approved by the Manitoba council. 7(3) Remuneration under subsection (1) must be paid as an expense out of the general revenue of the board, and shown in the annual report presented to the annual general meeting in each year. Committees 8 The board may appoint any committees that it considers necessary or desirable for the proper operation of this plan, and must appoint any committees that the Manitoba council requests it to appoint, in the form and for the purpose that the Manitoba council directs. Duties of the board 9(1) The board shall maintain books and records as required for the proper administration of this plan, which must be open for inspection by the Manitoba council at any reasonable time. 9(2) The board must maintain a head office and make its location known to persons who carry on business with the board. 9(3) The board must hold an annual general meeting of registered producers and designated representatives each year within six months after the end of the board's fiscal year, and it may hold any other general meetings that it considers necessary or advisable. 9(4) The board must make an annual report about its activities to the annual general meeting and to the Manitoba council, and the report must contain a copy of the audited financial statements of the board for the previous fiscal year. 9(5) The board must provide any other reports and information to the Manitoba council as it may from time to time require. Fiscal year 10 The fiscal year of the board is as determined by the administration by-law. Audit 11 A qualified auditor must be appointed by resolution passed at an annual or special general meeting for the purpose of auditing the books of the board. If an auditor is not so appointed, the board must itself appoint an auditor for that purpose. GENERAL POWERS OF THE BOARD General production and marketing powers of the producer board 12(1) The regulated product is under the jurisdiction of the board. 12(2) The regulated product may be marketed by the board. 12(3) Under the supervision of the Manitoba council, the board may perform acts, adopt policies and procedural rules, and make orders and regulations, as it considers necessary to administer this plan in accordance with its objectives, and to promote, regulate and manage the production and marketing of the regulated product. 12(4) For the purpose of carrying out its duties and functions the board may (a) open bank accounts in the name of the board and appoint signing officers; (b) borrow money on its credit and give security for money borrowed; (c) enter into agreements with producers and any other persons relating to the operation of this plan; (d) acquire and hold real and personal property in its name, mortgage property for the purposes of the board and sell or otherwise dispose of property when it is no longer required for the purposes of the board; (e) purchase, store, process or sell the regulated product; (f) advertise and promote the chicken broiler and broiler hatching egg industries in any manner it considers advisable, and compile, publish, distribute and provide information about these industries; (g) establish or assist in the establishment of programs for the prevention or control of diseases that may impact on the regulated product, and provide financial or other assistance to the owner of any fowl quarantined, treated, destroyed or disposed of in the interest of producers or in the public interest; (h) establish or assist in the establishment of programs to facilitate or require the removal of broiler breeder laying hens from broiler hatching egg production to avoid the production of broiler hatching eggs in excess of market demand, and to pay compensation to the owners of such laying hens; (i) initiate, encourage, support and conduct programs and research into any aspect contributing to the production, quality, market development or market retention of the regulated product; (j) participate in associations that are relevant to the chicken broiler and broiler hatching egg industries; and (k) subject to the Act and this plan, do any thing and make any orders, rules and regulations that it considers necessary or advisable to enable it to administer this plan. SPECIFIC POWERS OF THE BOARD Registration and licensing of producers and hatchery operators 13(1) The board may make orders requiring producers to register with the board, or hatchery operators to obtain licenses from the board, on such conditions and for such term, and on payment of such fees, as the board may determine. 13(2) The board must keep and maintain at its head office a register containing (a) the name and address of each registered producer and licensed hatchery operator; and (b) the location of the facility or facilities used by each registered producer, and the location of each hatchery used by a licensed hatchery operator. 13(3) The board may cancel or suspend the registration of a producer or the license of a hatchery operator who, in its opinion, (a) is not entitled to be registered or licensed; or (b) fails to comply with the Act, a regulation or order made or issued under the Act, or any condition of a registration or license granted by the board. The board may reinstate a cancelled or suspended registration or license on such conditions, and on payment of such fees, as the board may determine. 13(4) Written notice of intention to cancel or suspend the registration of a producer or the licence of a hatchery operator must be served on that person by the board, either in person or by registered mail, at least two weeks before the date of the proposed cancellation or suspension. 13(5) A producer or hatchery operator who objects to the cancellation or suspension of his or her registration or license may notify the secretary of the board in writing of his or her objections, and the grounds for them. Information 14(1) The board may make orders requiring a person who produces or markets chicken broilers to provide it with any information or record relating to such activities that the board considers necessary. 14(2) The board may make orders requiring a broiler hatching egg producer, a hatchery operator, and any other person engaged in the marketing of chicks or broiler breeder laying hens to report to it information respecting such marketing. Transportation 15 The board may make orders regulating the transportation of a regulated product in Manitoba. Exemptions 16 The board may make orders exempting from any regulation or order made by it (a) any quantity, quality, variety, class, age or grade of a regulated product; and (b) any person or class of persons who produce or market a regulated product, or any specified producers or purchasers of a regulated product or of any quantity, quality, variety, class, age or grade of a regulated product. In the making of such an order the board may also authorize a person to produce or market a quantity of a regulated product on a temporary basis on terms specified by the board. Directed marketings 17 The board may make orders determining the time and place at which, and designating the agency through which, a regulated product, or any quantity, quality, variety, class, age or grade of a regulated product, must be marketed by a producer. Pooling 18(1) The board may conduct a pool for distributing to producers all money received from the sale of a regulated product. 18(2) In conducting a pool, the board must, after (a) deducting all necessary and proper disbursements and expenses; and (b) making such allowances for reserves as may be approved by the Manitoba council; distribute the remainder of the money received from the sale of the regulated product in a manner such that each producer receives a share relative to the quantity, quality, variety, class, grade, weight, size or age of the regulated product delivered by the producer. 18(3) The board may make an initial payment on delivery of a regulated product by a producer, and subsequent payments until the remainder of the money received from the sale of the regulated product is distributed to producers. Price orders 19 The board may make orders fixing (a) the minimum or maximum price, or both; or (b) the price; at which a regulated product, or any variety, quality, class, grade, weight, size or age of a regulated product, may be sold by a producer. NOTICE REQUIREMENTS FOR THE SUPPLY OF CHICKEN BROILERS Definitions and interpretation 19.1(1) The following definitions apply in this section and in sections 19.2 to 19.10. "baseline marketing cycles" means the marketing cycle in progress on the day this section comes into force, and the two marketing cycles immediately preceding that marketing cycle. (« cycles de commercialisation de référence ») "marketing cycle" means a marketing cycle as defined in the Chicken Broiler Quota Order , M.R. 228/2006 . (« cycle de commercialisation ») "processor" means a person engaged in processing chicken broilers in Manitoba, and who operates (a) an establishment registered under the Meat Inspection Act (Canada); or (b) a poultry processing plant inspected pursuant to a meat inspection agreement made between the Government of Canada and the Government of Manitoba providing for meat inspection services to domestic plants in Manitoba. (« transformateur ») "producer's total sales in a marketing cycle" means the total weight of all sales of regulated product by a producer to all processors in that marketing cycle. (« ventes totales au cours d'un cycle de commercialisation ») "regulated product" means a chicken broiler raised or kept in Manitoba. (« produit réglementé ») 19.1(2) In this section and in sections 19.2 to 19.10, a producer is deemed to have a relationship with a processor for the purchase of regulated product in a marketing cycle if the producer sells regulated product to the processor in that marketing cycle. 19.1(3) If a reallotment of quotas and allotments occurs under any of the provisions of the Chicken Broiler Quota Order , M.R. 228/2006 , listed in subsection (4), (a) the person or persons to whom the quotas and allotments have been realloted are deemed to have the same relationships with processors that the producer who formerly held the quotas and allotments had in the marketing cycle immediately preceding the reallotment; (b) subject to subsection 19.3(2), a producer to whom subsection 19.2(1) would otherwise apply is not required to comply with the notice requirements of section 19.5 in order to sell regulated product to a processor referred to in clause (a); and (c) a producer to whom section 19.4 would otherwise apply is not required to comply with that section. M.R. 92/2009 19.1(4) The provisions of the Chicken Broiler Quota Order , M.R. 228/2006 , referred to in subsection (3) are as follows: (a) section 56 (complete farm sales); (b) section 57 (sale of moveable equipment and buildings); (c) section 58 (lease of complete farm); (d) section 59 (bankruptcy or receivership of a registered producer); (e) section 60 (reallotment of quota and dispensing with financial information on death, disability or retirement); (f) section 61 (reallotment of quota and dispensing with financial information on establishment of family partnership); (g) section 62 (reallotment of quota and dispensing with financial information on establishment of a corporation); (h) section 63 (partial and complete reallotment of quota to related persons); (i) section 64 (consolidation of existing chicken production operations). M.R. 92/2009 Notice requirement for selling regulated product to a different processor 19.2(1) Subject to subsections (2) and (3), a producer who has a relationship with only one processor (hereinafter called the "initial processor") for the purchase of regulated product in a marketing cycle must not sell regulated product to a different processor in any subsequent marketing cycle without first complying with the notice requirements specified in section 19.5. 19.2(2) This section does not apply to a producer if the initial processor (a) no longer operates a processing plant in Manitoba; (b) is unable or unwilling, for any other reason, to purchase regulated product of an acceptable market quality from the producer; (c) does not pay the producer for the regulated product the producer provides to the processor, or the producer reasonably believes that the processor may not, or may not be able to, make such a payment; or (d) pays, or offers to pay, the producer an amount for the purchase of regulated product that is calculated at a rate lower than the minimum rate established by the board under section 19. 19.2(3) The notice requirements referred to in subsection (1) do not apply to a producer in relation to sales of regulated product pursuant to (a) a Temporary Market Allotment Permit issued under Part III, other than section 16 (permit for special catch up), of the Chicken Broiler Quota Order , M.R. 228/2006 ; or (b) an exemption under section 16 of this regulation. M.R. 92/2009 Notice requirements for selling regulated product to processors in different proportions 19.3(1) Subject to subsections (3) and (4), after the end of the marketing cycle in progress on the day this section comes into force, a producer who had a relationship in that marketing cycle with more than one processor for the purchase of regulated product must not, without first complying with the notice requirements specified in section 19.5, sell regulated product such that (a) the percentage of the producer's total sales in a marketing cycle that are sold to a processor; is more than 10 percentage points above or below (b) the average percentage of the producer's total sales in a marketing cycle sold to that processor in the baseline marketing cycles in which the producer sold regulated product to more than one processor. Notice requirements for selling regulated product in different proportions after reallotment 19.3(2) Subject to subsections (3) and (4), if a producer receives a reallotment of quotas and allotments and as a result of clause 19.1(3)⁠(a) has a relationship with more than one processor, the producer must not, without first complying with the notice requirements specified in section 19.5, sell regulated product such that (a) the percentage of the producer's total sales in a marketing cycle that are sold to a processor; is more than 10 percentage points above or below (b) the percentage — in the marketing cycle immediately preceding the reallottment — of the aggregate total weight of sales of regulated product made by the producer, and by the producer from whom the quotas and allotments were reallotted, that were made to that processor. 19.3(3) This section does not apply to a producer if one or more of the processors with whom the purchaser has a relationship for the purchase of regulated product (a) no longer operates a processing plant in Manitoba; (b) is unable or unwilling, for any other reason, to purchase regulated product of an acceptable market quality from the producer in an amount that is within 10 percentage points of (i) the average percentage determined under clause 19.3(1)⁠(b), or (ii) the percentage of the aggregate total weight of sales in the immediately preceding marketing cycle, as determined under clause 19.3(2)⁠(b), as the case may be; (c) does not pay the producer for the regulated product the producer provides to the processor, or the producer reasonably believes that the processor may not, or may not be able to, make such a payment; or (d) pays, or offers to pay, the producer an amount for the purchase of regulated product that is calculated at a rate lower than the minimum rate established by the board under section 19. 19.3(4) The notice requirements referred to in subsections (1) and (2) do not apply to a producer in relation to sales of regulated product pursuant to (a) a Temporary Market Allotment Permit issued under Part III, other than section 16 (permit for special catch up), of the Chicken Broiler Quota Order , M.R. 228/2006 ; (b) a Temporary Market Allotment Permit issued under section 16 of the Chicken Broiler Quota Order , M.R. 228/2006 , if (i) the permit was issued in relation to undermarketings caused by a situation for which an exemption under section 26 of that Order was granted, and (ii) the regulated product is sold to a processor who purchased a lesser percentage of the producer's regulated product as set out in subsection 19.8(2) due to the undermarketings, up to the amount of that processor's shortfall; or (c) an exemption under section 16 of this regulation. M.R. 92/2009 Notice requirements if no purchasing relationship on the coming into force of section 19.4(1) Subject to subsection (4), a producer who (a) did not — in the marketing cycle in progress on the day this section comes into force — have a relationship with any processor for the purchase of regulated product; and (b) after that marketing cycle, establishes a relationship with one or more processors for the purchase of regulated product; must, before the end of the first marketing cycle in which the producer sells regulated product to one or more processors, (c) give written notice to the board naming the processor or processors to whom the producer has sold, or agreed to sell, regulated product; and (d) if the producer has sold, or agreed to sell, regulated product to more than one processor, also give written notice to the board stating the percentage of the producer's total sales in a marketing cycle that are to be sold to each processor. 19.4(2) Subject to subsections (3) and (4), a producer described in clause (1)⁠(d) must not sell regulated product to a processor such that the percentage of the producer's total sales in a marketing cycle that are sold to the processor is more than 10 percentage points above or below the percentage specified in relation to that processor in the notice provided under clause (1)⁠(d), without first complying with the notice requirements specified in section 19.5. 19.4(3) Subsection (2) does not apply to a producer if one or more of the processors with whom the purchaser has a relationship for the purchase of regulated product (a) no longer operates a processing plant in Manitoba; (b) is unable or unwilling, for any other reason, to purchase regulated product of an acceptable market quality from the producer in an amount that is within 10 percentage points of the percentage specified in relation to that processor in the notice provided under clause (1)⁠(d); (c) does not pay the producer for the regulated product the producer supplies to the processor, or the producer reasonably believes that the processor may not, or may not be able to, make such a payment; or (d) pays, or offers to pay, the producer an amount for the purchase of regulated product that is calculated at a rate lower than the minimum rate established by the board under section 19. 19.4(4) This section does not apply to a producer in relation to sales of regulated product pursuant to (a) a Temporary Market Allotment Permit issued under Part III, other than section 16 (permit for special catch up), of the Chicken Broiler Quota Order , M.R. 228/2006 ; or (b) an exemption under section 16 of this regulation. M.R. 92/2009 Notice requirements 19.5(1) A producer required to give notice under subsection 19.2(1), 19.3(1), 19.3(2), 19.4(2) or 19.6(1) must give that notice at least three marketing cycles — not including the remainder of the current cycle — before (a) selling regulated product to a processor other than the initial processor as described in subsection 19.2(1); (b) selling regulated product to a processor in an amount that results in the percentage of regulated product sold to that processor being more than 10 percentage points above or below the average percentage sold to that processor in the baseline marketing cycles, as determined under clause 19.3(1)⁠(b); (c) selling regulated product to a processor in an amount that results in the percentage of regulated product sold to that processor being more than 10 percentage points above or below the percentage of the aggregate total weight of sales that were made to that processor in the immediately preceding marketing cycle, as determined under clause 19.3(2)⁠(b); (d) selling regulated product to a processor in an amount such that the percentage of the producer's total sales in a marketing cycle that are sold to the processor is more than 10 percentage points above or below the percentage specified in relation to that processor in the notice provided under clause 19.4(1)⁠(d); or (e) selling regulated product after the expiry of a notice period in the circumstances described in subsection 19.6(1). 19.5(2) The producer must give a notice under subsection (1) to (a) each processor with whom the producer has a relationship for the purchase of regulated product; and (b) each processor with whom the producer intends to enter into a relationship for the purchase of regulated product after the notice period expires. 19.5(3) Upon receipt of a notice under this section, the processor must, without delay, give a copy of it to the board. The board must in turn, without delay, give a copy of the notice to the Manitoba council. 19.5(4) A notice under this section must be in a form satisfactory to the board, and must contain the following information: (a) the name of each processor to whom the producer will be selling regulated product after the notice period expires; (b) if the producer will be selling regulated product to more than one processor after the notice period expires, the percentage of the producer's total sales in a marketing cycle that are to be sold to each processor; (c) such other information as the board may require. M.R. 92/2009 ; 59/2019 Further supply changes 19.6(1) If a producer (a) has complied with the notice requirements of section 19.5; and (b) the notice states that the producer will be selling regulated product to more than one processor after the notice period expires; the producer must not, subject to subsection (2), sell regulated product after the expiry of the notice period such that the percentage of the producer's total sales in a marketing cycle that are sold to a processor is more than 10 percentage points above or below the percentage to be sold to that processor, as set out in the notice, without having again complied with the notice requirements specified in section 19.5. 19.6(2) Subsection (1) does not apply to a producer in any of the circumstances described in subsection 19.3(3), 19.3(4), 19.4(3) or 19.4(4). M.R. 92/2009 Baseline reports by the board 19.7(1) Within seven days after the day this section comes into force, the board must give to the Manitoba council a report setting out the following information: (a) for each processor, a list of producers who have sold regulated product to that processor in the marketing cycle in progress on the day this section comes into force; (b) in relation to a producer who has sold regulated product to more than one processor in the marketing cycle in progress on the day this section comes into force, (i) the name of each processor, if any, to whom the producer has sold regulated product in the baseline marketing cycles, and (ii) the total weight of regulated product sold to each processor in each marketing cycle included in the baseline marketing cycles. 19.7(2) Within 14 days after the end of each marketing cycle, the board must give to the Manitoba council a report setting out the following information: (a) for each processor, a list of producers who sold regulated product to that processor in the marketing cycle; (b) in relation to a producer who sold regulated product to more than one processor in the marketing cycle, the total weight of regulated product sold to each processor; (c) details about any reallotments of quotas and allotments, as described in subsections 19.1(3) and (4), in the marketing cycle; (d) information about any levies imposed on a producer under section 19.9 in the marketing cycle; (e) any other information that may be required by the Manitoba council. 19.7(3) The reports under this section must contain the information required by the Manitoba council and be in a form satisfactory to the Manitoba council. M.R. 92/2009 Processor not to purchase product from a non-compliant producer 19.8(1) No processor shall purchase regulated product from a producer who is in violation of subsection 19.2(1), 19.3(1), 19.3(2), 19.4(2) or 19.6(1). 19.8(2) Subsection (1) does not apply to (a) an initial processor as described in subsection 19.2(1); or (b) a processor who purchases a lesser percentage of a producer's regulated product (i) than the average percentage of the producer's total sales in a marketing cycle that it purchased in the baseline marketing cycles, as determined under clause 19.3(1)⁠(b), (ii) than the percentage of the aggregate total weight of sales that were made to that processor in the immediately preceding marketing cycle, as determined under clause 19.3(2)⁠(b), (iii) than the percentage specified in relation to that processor in a notice provided under subsection 19.4(1), or (iv) than the percentage to be sold to that processor, as set out in a notice provided under section 19.5. 19.8(3) Before purchasing regulated product from a producer, a processor may contact the board to ascertain whether the purchase will be in accordance with subsection 19.2(1), 19.3(1), 19.3(2), 19.4(2) or19.6(1). M.R. 92/2009 Levies imposed on producers for non-compliance 19.9(1) A levy is imposed on a producer (a) who does not comply with subsection 19.2(1); or (b) who does not comply with subsection 19.3(1), 19.3(2), 19.4(1), 19.4(2) or 19.6(1), unless the producer satisfies the board that the reason for the different proportions of regulated product sold to processors is a reason for which the producer should be granted an exemption under section 26 of the Chicken Broiler Quota Order , M.R. 228/2006 . 19.9(2) The levy is imposed for a total of three marketing cycles — including the remainder of the current cycle — beginning on the day that the board becomes aware of the breach. 19.9(3) Despite subsection (2), a levy is no longer imposed in any of the following circumstances: (a) if a producer who breached section 19.2 discontinues selling regulated product to a processor other than the initial processor; (b) if a producer who breached subsection 19.3(1), 19.3(2), 19.4(2) or 19.6(1) resumes selling regulated product to processors in proportions that would not have required the producer to give notice in accordance with section 19.5; (c) if a producer who breached subsection 19.4(1) gives notice as required by that subsection. But any levies that have already been imposed on the producer remain payable. 19.9(4) The amount of the levy is $0.24 per kg (a) on the weight of regulated product sold to a processor other than the initial processor, in the case of a producer who breaches section 19.2; and (b) on the weight of regulated product sold to a processor in excess of 10 percentage points above or below (i) the average percentage sold to that processor, as determined under clause 19.3(1)⁠(b), in the case of a producer who breaches subsection 19.3(1), (ii) the percentage of the aggregate total weight of sales that were made to that processor in the immediately preceding marketing cycle, as determined under clause 19.3(2)⁠(b), in the case of a producer who breaches subsection 19.3(2), (iii) the percentage specified in relation to that processor in the notice provided under subsection 19.4(1), in the case of a producer who breaches section 19.4, and (iv) the percentage to be sold to that processor, as set out in a notice provided under section 19.5, in the case of a producer who breaches section 19.6. 19.9(5) A levy imposed under this section is due and payable to the board at its office, 1357 Kenaston Blvd., Winnipeg, Manitoba, within 15 days following delivery of notice in writing to the producer by the board of the amount of the levy due and owing. M.R. 92/2009 ; 59/2019 Live weight reference 19.10 References in sections 19.1 to 19.9 to weight of regulated product are references to the live weight of regulated product. M.R. 92/2009 REGULATIONS REQUIRING COUNCIL APPROVAL Approval of the Manitoba council 20 A regulation made under section 21 or 22 is not effective until approved by the Manitoba council. Fees and levies 21 The board may make regulations (a) assessing fees and levies payable to it by producers of a regulated product, including hatchery operators, and providing for the collection of such fees and levies; and (b) requiring a person who receives a regulated product from a producer for marketing to deduct from the money payable by the person to the producer any fees or levies payable by the producer to the board and to remit them to it together with any information or record relating to such fees or levies, or to the production or marketing of the regulated product, that the board considers necessary. Penalties 22 The board may make regulations (a) controlling the quantity, quality, variety, class, age or grade of any regulated product that may be produced or marketed by imposing penalties on producers and collecting such penalties; (b) controlling the quantity, age, class or variety of broiler breeder laying hens that may be raised or kept at any time or in any place by a person engaged in their production by imposing penalties on producers and collecting such penalties; (c) controlling the marketing of chicks by a hatchery operator contrary to an order prohibiting the purchase of chicks; and (d) requiring a person who receives a regulated product from a producer for marketing to deduct from the money payable by the person to the producer any penalties payable by the producer to the board and to remit them to it. ORDERS REQUIRING COUNCIL APPROVAL Approval of the Manitoba council 23 An order made under section 24 or 25 is not effective until approved by the Manitoba council. Quotas 24(1) The board may make orders requiring the production or marketing, or both, of a chicken broiler to be conducted pursuant to a quota on such basis, and on payment of such fees, as it considers appropriate, including governing, with respect to registered producers (a) the fixing and allotting of quotas; (b) the increase or reduction of quotas; (c) the cancelling of quotas; and (d) the refusal to fix and allot quotas. 24(2) The board may make orders determining the quantity, class, age or variety of broiler breeder laying hens that may be raised or kept at any time or in any place by a person engaged in the production of broiler hatching eggs. 24(3) The board may make orders determining the quantity, quality, variety, class or grade of broiler hatching eggs that may be marketed at any time or in any place by a broiler hatching egg producer. 24(4) An order under subsection (1), (2) or (3) may: (a) prohibit (i) the raising or keeping, or both, of chicken broilers, (ii) the raising or keeping, or both, of broiler breeder laying hens, (iii) the marketing of chicken broilers or of broiler hatching eggs; (b) require a person who receives a regulated product from a producer for marketing to deduct from the money payable by the person to the producer any fees payable by the producer to the board and to remit them to it. 24(5) A quota allotted to a producer by the board belongs to the board. 24(6) No person shall (a) transfer, assign or sell a quota to another person; (b) offer to transfer, assign or sell a quota to another person; (c) receive payment for a quota, or make a payment to a producer for a quota; (d) buy or offer to buy a quota from a producer; or (e) take or purport to take an interest in a quota, or grant or purport to grant an interest in a quota, for the purpose of securing or purporting to secure a payment or the performance of an obligation. 24(7) Nothing in this section prohibits the board from operating a program that re-distributes quotas on the basis of payments made to the board by participants in the program, or payments received by participants from the board. 24(8) Despite anything in this section, if a person intends to sell, lease, license or otherwise assign a facility used by a producer to produce or market a regulated product, the board may reduce or cancel the quota of that producer, and may allot to the person acquiring the facility a quota either on a temporary or permanent basis in respect of that facility. 24(9) If a quota has been issued in the name of an association, partnership, body corporate, trust or other organization, the board may reduce or cancel the quota if there is a change in the legal or beneficial ownership of that organization. 24(10) The board may reduce or cancel a quota allotted to a producer who enters into a contract or agreement that deprives the producer of the right to the proceeds from the marketing of the regulated product produced by that producer. Orders re marketing of chicks 25 The board may make orders prohibiting the marketing of chicks except on such basis, and on payment of such fees, as it considers appropriate. CERTIFICATION OF FACILITIES Certification of facilities 26 The board may certify a facility for use in the production or marketing of a regulated product and may impose one or both of the following conditions in the allotment of a quota to a producer: (a) that the regulated product raised, kept or produced by the producer be raised, kept or produced in that facility; (b) that the regulated product marketed by the producer be raised, kept or produced in that facility. GENERAL PROVISIONS General requirements for regulations and orders 27 Every regulation and order made by the board under this plan, the Act or the regulations must be (a) signed by the proper officers under the seal of the board; and (b) open for inspection by any producer or by any person designated by the Manitoba council, at the head office of the board during regular business hours. Partnerships and shared arrangements 28(1) For the purpose of this plan and any regulation or order made by the board, if two or more persons produce or market a regulated product together, the regulated product produced or marketed by one of them is deemed to be produced or marketed by the other person or persons, and such persons shall be treated as a single person for the purpose of determining the amount of a regulated product produced or marketed by any of them. 28(2) Subsection (1) applies when the persons produce or market a regulated product (a) in partnership; (b) in circumstances in which they share facilities, equipment, labour or services provided directly or indirectly by any or all of them or by the same corporation, firm or individual, whether the sharing is familial, communal or otherwise; or (c) in circumstances where one or more of the persons has an interest in an employment arrangement, a management arrangement or a loan or a guarantee involving one or more of the other persons, other than the lending of money to a person in the ordinary course of business by a bank, credit union, trust company, Farm Credit Canada, the Manitoba Agricultural Credit Corporation or any other commercial lender approved by the Manitoba council. 28(3) The board may direct that this section does not apply to a person or a class of persons.

Non-application 29 The provisions of this plan applicable to the production or marketing, or both, of chicken broilers, except sections 14 to 16, and section 28, do not apply to a person who produces fewer than 1,000 chicken broilers in a calendar year, or to any person who has provided the board with a satisfactory undertaking that he or she will market fewer than 1,000 chicken broilers in a calendar year, provided that such person markets fewer than 1,000 chicken broilers in that year. TRANSITIONAL Orders and regulations of board continued 30 Every order and regulation continued, made or issued under the Manitoba Chicken Broiler Producers' Marketing Plan Regulation, Manitoba Regulation 37/2004, that was in force immediately before the coming into force of this plan, continues under this plan, and may be altered or enforced as if made under this plan. REPEAL AND COMING INTO FORCE Repeal 31 The Manitoba Chicken Broiler Producers' Marketing Plan Regulation, Manitoba Regulation 37/2004, is repealed. Coming into force 32 This regulation comes into force on January 1, 2005, or on the date it is registered, whichever is later.