Revamping Turkey Quotas: New Rules for Producers

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Manitoba Regulation 114/2024 introduces significant updates to the management of turkey production quotas in Manitoba. This amendment modifies the original Turkey Quota Order (Regulation 38/2008) to incorporate new definitions and systems for quota reallocation, retirement, and temporary suspension. The amendment defines several terms, such as the “Retirement and Basic Allotment (Breeder/Mature) Reallocation System,” which allows the reallocation of quotas for retiring producers, and the “Temporary Suspension and Reallotment System,” a mechanism for producers to temporarily suspend and transfer quota allotments. Key changes include an updated payment system, making entitlements from these programs non-transferable without Board consent.

Clause 9(a) was modified to allocate shortfall shares based on a producer’s allotment within the Aggregate Provincial Basic Allotment. Section 33 now restricts assignment of payments or entitlements unless approved by the Board, reinforcing the Board’s regulatory control over payments and entitlements in quota adjustments. Sections 60 to 60.5 introduce detailed criteria for both high and low-ratio market reallotments, designed to facilitate the temporary transfer of quota allotments between producers while maintaining overall production limits. High-ratio reallotments range from 10,001 kilograms up to 40% of a producer’s total allotment, whereas low-ratio reallotments allow up to 10,000 kilograms, ensuring that any temporary transfers do not exceed one marketing year and that no producer surpasses a cap of 600,000 kilograms per year. For reallotment applications, both applicants and recipients must meet specific criteria, including having no outstanding marketing penalties.

The amendment adds Schedule B, which establishes procedures for high-ratio authorized market reallotments, detailing roles, program requirements, and financial processes within the Temporary Suspension and Reallotment System. Designated Staff are assigned to manage program operations, including receiving and processing bids and offers from producers and organizing “Reallotment Days.” The amendment outlines conditions for both offers and bids in the reallotment system. Producers must submit bids in the approved format, with the required information and fees.

The financial structure of the program requires administration fees from bidders, deposited into a “Retirement and Reallotment Fund,” from which successful offerors are paid for their reallocated quota units. When demand exceeds supply in an offer, quotas are proportionally distributed among bidders. If offers exceed bids, remaining quotas may be decreased, or the offeror may choose to proceed at a lower volume.

The amendment gives the Board authority to approve, reduce, or cancel quotas based on the results of reallotment programs. Successful bidders gain temporary quota units for one marketing year, capped at 600,000 kilograms per year, and excess quota units are redistributed among other successful participants. This regulatory update aims to enhance flexibility and support sustainable turkey production in Manitoba, aligning with market conditions and ensuring a structured process for quota reallocation.

Manitoba (114/2024) November 6, 2024