Tobacco Board May Get Smaller

Source from:  Samantha Craggs SIMCOE REFORMER Simcoe Reformer 07/22/2005

The shrinking of the local tobacco growing industry is becoming evident even in its governance. The Ontario Flue-Cured Tobacco Growers Marketing Board is looking at reducing the size of its board and restructuring its operations. With an increasing number of growers exiting the industry, including about 150 who took a recent buyout package, it makes sense, says vice chair Chris Van Paassen. "It's been discussed for a couple of years," says Van Paassen, a Simcoe-area grower. "The number of farmers has gone down. What we do changes, and staffing levels change. Every once in awhile, you have to sit back and look at things." Van Paassen says "everything is on the table" in terms of what will be examined. The review will ensure that the organizational structure of the board is financially sustainable, the board and staff's operation are optimized and focus on key priorities in an efficient manner, and producers are adequately represented. The board is consulting with the Ontario Farm Products Marketing Commission and is in the midst of hiring an independent consultant to examine its operations. The last major restructuring was about 15 years ago, when the board was cut from 15 members to 11, says Van Paassen. Committee members in the board's 10 districts were cut from four to two. It is common and encouraged that Ontario's roughly 23 marketing boards periodically examine their operations, says Paul Glenney, analyst with the provincial commission. He uses an example from a few years ago of the chicken producers marketing board re-examining its districts. "The board will do a review, come up with what they believe to be in the best interests of the industry, and come back to the commission with it," he says. After reviewing the proposal, the commission can change the regulations. As for other commodities restructuring, "I'm not aware of any at the present time," he says. "This is something the commission encourages." Glenney says a declining market or decreasing number of producers is a common reason. General manager Jason Lietaer said earlier that it is unlikely it will happen before this fall's election. The board has already trimmed its public relations costs from $66,000 last year to $38,000 this year and cut operations by $90,000 to $3.85 million. Van Paassen says restructuring the board has been on farmers' minds for the last couple of years. "Everything's got to be leaner, meaner and more efficient," he says. "We have to get the most bang for our buck." Enditem