SELECTION POLICY OF PRODUCTION MEMBERS

Translation (Summer 2014) of Adopted version – November 26, 2012

INTRODUCTION

Aim

The goal of the policy is to describe clearly the selection process of production members (aka member-

producer) of the Marché de solidarité régionale de l’Outaouais (hereinafter the MSRO).

Objective

The objective of this policy is to allow the MSRO to select producers while respecting the values and principles of

the co-operative in order to guarantee an appropriate offer of products to the members using the MSRO services

(member-user).

Terms and Conditions

This policy arises from the MSRO by-laws and from a comprehensive study conducted in 2011 by the production

members selection committee. It provides the framework and guidelines to the employees and to the directors of

MSRO to manage the business relationship between the co-operative and its production members. The policy is

applicable immediately upon the receipt of a membership application by a producer and as long as the signed

agreement between the two parties remains active.

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1. SELECTION PROCESS OF PRODUCTION MEMBERS

The MSRO signs business agreements with the producing members. Three categories of production members are

accepted according to the criteria set by the MSRO. The order indicated below determines the priorities.

1) The agricultural producers who are operating in Outaouais Region within a 150-km radius of the main

unloading point (based on Google Maps).

2) The processing producers who are producing and processing in Outaouais within a 150-km radius of the

main unloading point.

3) The processors who are transforming agro-food or environment-friendly products in Outaouais within a

150-km radius of the main unloading point.

4) The area covered includes the Ontarian part of the Outaouais, within a 100-km radius of the main

unloading point. The MSRO always gives priority to producers and producers / processors with an

established place of business in Outaouais on the Québec side, before recruiting on the Ontario side.

The primary objective of the MSRO is to respond to the demand of its members using the MSRO services. The

applications from producers are received, reviewed and assessed against the needs of the members in a view to

continuously fulfill and improve the offer.

The membership process to become a producing member (support member) is comprised of seven steps:

1) Receipt of a complete membership form

2) Visit of the business (if required) 1

3) Assessment of the request

4) Review of the assessment made by the production selection committee and recommendation

5) Decision of the Board of Directors

6) Signature of the agreement

7) Creation of the producer account in order to activate the products offered on line

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MSRO – PRODUCER MEMBERSHIP REQUEST ASSESSMENT

VISIT OF PRODUCER, COMMITTEE RECOMMENDATION, BOARD DECISION

ANALYSIS CHART OF PROPOSED PROCESS MARCH 1, 2012 PROJECT

PRODUCER MSRO – RELATIONS COORDINATOR with PRODUCERS PRODUCERS’ COMMITTEE, BOARD

Waiting MSRO’s Decision

Waiting period too long?

No Yes

Contact MSRO

Receives Response from

MSRO

Start

Request rejected by MSRO without visiting?

Yes No

Delegate visit?

No Yes

Make appointment with producer; if possible and

desired, have a committee member participate in

visit

Visit producer, write visit report & make recommendation

Verify report & recommendation

Issue recommendation with justification &

supporting documentation as required on the form

Send recommendation and information to

Committee. Attend committee meeting in person or by telecom and also attend Board meeting if

applicable

Wait Board decision and inform producer of

progress on application request

Wait 5 days

Producer is informed of MSRO decision

Chairman records Board

decision on form

End

Ask a committee member to make

appointment with producer

Committee member visits producer, writes

visit report and makes recommendation

Board receives the recommendation

Reject recommendation based on criteria

1.2.2, 2.1.1, 3.1.1 & 4.1.1?

Yes No

Committee Chairman decides whether or

not to discuss at next Board meeting

No Yes

Chairman sends Committee chair initia-

form, relevant tes consultation to plan docs & reco’n meeting

Committee appro- Committee chair prepa-

ves or requests mtg res meeting agenda

Meeting req’d? Committee chair con-

Yes firm mtg, send agenda, form, other relvnt info

Committee analyzes file & writes reco’n on form

Committee chair requests item to be put on Board’s agenda, send recommendation

to Board and attends meeting

Board analyzes file & makes decision;

Board’s chairman advises Committee chair

of decision and coordinator

1

1

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2. SELECTION PROCESS – STEPS

STEP DESCRIPTION OUTPUT

New Request

1. Receipt of the

membership application

The producer who wants to offer his products to

the MSRO sends his completed application form

to the Manager by electronic mail or by fax

machine

Completed application form

Products list

Copy of permits or business

certification

Business description

Résumé of the owners

(optional)

2. Visit of the business (for

example: on site,

presentation to the

MSRO, interview, etc.…)

The manager and one member of the producer

selection committee meet with the producer in

order to evaluate the physical site of the

enterprise. The manager decides on the format of

the visit based on information provided in the

application request

Business visit report

Pictures (optional)

3. Assessment of the request The manager analyzes the request based on the

assessment grid

Evaluation report

Recommendation of the

manager

4. Review of the

recommendation by the

selection committee

The selection committee is composed of the

manager, at least one member consumer (max. of

2) and one producing member (only one)

Recommendation to the

Board of directors

5. Approval by the Board of

directors

The selection committee makes his

recommendations to the Board

Motion of the Board

6. Signature of the service

agreement

When the request is approved, the manager

prepares the agreement and submits it to the

producer for his ratification

Signed agreement between

the producer and the MSRO

Renewal of an Agreement Modification request made by

an existing production

member

When an enterprise has made major changes or is

proposing a product line quite different from the

original agreement, the producer must submit a

new application request. MSRO reserves the right

to request a new assessment to ensure the

suitability and quality of the product offering

New application request

Same process applies as

original request; adapted

based on requested changes

Regular evaluation of

production members

In order to ensure the consistency and quality of

services and products offered, MSRO will

undertake selective evaluations of the producers

in accordance with a pre-determined schedule and

shared with the producers

Evaluation report and

recommendations to the

Board

New signed agreement, if

deemed necessary

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3. MEMBERSHIP APPLICATION FORM

Name of the Business*: Request Date

*:

Name of the Contact person*:

Business Status* Company ☐ Corporation ☐ Other:

Registration Number (if applicable):

Address of the main production and/or processing location*:

City* Province

* Postal code*

Postal address if different from address indicated above:

Main phone number*: Cell phone number:

Fax machine: Other phone number(s):

Email address*: Website:

* The fields followed by an asterisk are mandatory

ELIGIBILITY REQUIREMENTS

To offer your products to the MSRO, your business must meet the following requirements.

Requirement Description

Internet access and working

email address

Your products are available to members on the MSRO website. You access MSRO

website to offer your products mix and collect orders registered before delivery

Listing and description of

products in French

You provide a detailed description of each product offered by your enterprise in

order to satisfy quality requirements and to better guide consumers when making

their selection

Weekly delivery to the drop-

off location

You are able to deliver all products ordered before noon each and every Thursday

Food produced in Outaouais

Region

Your business is located within a 150-km radius from the main drop-off location

Selling price policy The price of your products is equal or lower than the selling price of the same

products offered in other sale outlets within the Outaouais Region

An annual mandatory activity You are committed to hold at least one MSRO activity per year (for example,

sample tasting)

Required permit (provide a

copy) and certification

Your business must possess all required permits to operate and deliver its products.

If your business is certified, provide proof of such certification.

Integrated farming approach Your business follows common sense practices targeted at limiting environmental

impact and fostering animal well-being

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DESCRIPTION OF YOUR BUSINESS

In a few sentences, describe your business (historical background, owners, mission, market, etc.)

Or provide an existing up-to-date document that provides such information

DESCRIPTION OF YOUR PRODUCTS

1. What are the unique features of your products, of your business?

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

2. Explain how your products meet the needs and values of the MSRO members?

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

3. What volume of production (quantity) could you provide on a weekly basis to the MSRO (estimate)? At what

period: Year-round? Seasonal?

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

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4. How different are the products offered by your enterprise from other products already available at the MSRO?

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

5. Suppose that you are unfortunately out of stock and that you are unable to meet your commitments, what would

be your approach, your solution?

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

6. Please list the other retail outlets where you are offering your products?

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

7. Please check all boxes for the categories indicated below for which you are making an application

☐ Seasoning, preserves and pesto ☐ Prepared dishes or meals

☐ Drinks, juices ☐ Eggs

☐ Bakery and pastries ☐ Plants, flowers and seeds

☐ Cereal, flour and pasta ☐ Fish

☐ Delicatessen ☐ Fair trade certified products

☐ Jam, honey and maple products ☐ Organic products

☐ Housekeeping products ☐ MSRO products

☐ Dairy products and cheese ☐ Products from craftsperson

☐ Fruits ☐ Health and beauty care products

☐ Vegetables ☐ Body care products

☐ Legumes, seeds and soya ☐ Meat and meat products

☐ Other products (please specify): ____________________ ☐ Poultry

4. EVALUATION OF PRODUCTION MEMBERS

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In order to be fair and equitable and to offer wanted products to the members using the MSRO services, the MSRO

has developed a list of criteria meeting its values and its quality requirements.

The manager, accompanied by the selection committee, evaluates the applications requests against the relevant

criteria, in accordance to the production or processing type.

ASSESSMENT CRITERIA

1. The Business

The longevity of the enterprise (start-up equal or over 10 years ago)

Line of available products

The available production volume (can satisfy client’ orders)

Inventory management – products turn-around, product supply, consistency and reliability

Infrastructure and equipment (storage, cooling and processing facilities, washing station, etc.…)

General state of the farm location: cleanliness, site maintenance, storing facilities and conditions of the

buildings

2. Integrated farming approach: safeguarding the environment

Protection status (organic certification vs. conventional

Cultivation practices (fertilizers, pesticides, Québec’s PAEF – Plan Agrienvironnemental de fertilisation)

Manure management practices

3. Animal well-being

Usage of medication (natural vs. conventional); treatment methods of diseases

Animal housing mode (freely vs. cages)

General state of the animals (density, air quality, animal cleanliness, litter box, fleshing state)

Animal transportation (on site, going to the slaughterhouse)

4. The Business Owner

Ability to communicate in French (orally and in writing)

Ability to communicate in English (orally and in writing)

Consumer relations (ability to promote his products)

Commitment towards MSRO (values, marketing, motivation)

Ability to work in partnership and in cooperation (reputation, attitude)

5. Line of Products Offered

Meet demands made by members of the MSRO: needs not satisfied

Innovative: trends or differentiations (for example, gluten-free)

Suggested price acceptable to average MSRO consumers (common vs. luxury)

Product quality (freshness, tasty, presentation)

Packaging method (materials used, various size, recyclable)

6. Processed products

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Competitive analysis against existing production members

Level of food processing (from raw materials or from products already processed)

Level of specialization (i.e., commercial product) or home made

Local products content in the final product

Quality control of ingredients used

Compliance with food labelling regulations

Compliance with food safety regulations in accordance with the type of product

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5. SERVICE AGREEMENT

When they are accepted as support member, the producers and the MSRO sign a service agreement in order to

oversee the business relationship and to ensure a smooth operation of the activities. The agreement is renewed or if

there are sufficient changes made to the business environment, it might justify preparing a new agreement.

AGREEMENT BETWEEN BOTH PARTIES

First party:

COOPÉRATIVE DE SOLIDARITÉ MARCHÉ DE SOLIDARITÉ RÉGIONAL DE L’OUTAOUAIS, identified

hereinafter as MSRO, and represented in this agreement by the CHAIRPERSON, chairperson of the Board of

Directors of the MSRO.

Second party:

NAME OF THE FARM OR BUSINESS, identified hereinafter as PRODUCER, and represented in this agreement

by the BUSINESS REPRESENTATIVE.

Is granted the current agreement aiming at achieving together, and jointly and severally liable, the mission of the

MSRO as a solidarity cooperative, that is to say: “The MSRO aims to make available local products to the Outaouais

population by creating a direct link between consumers and producers in order to promote regional development,

community spirit, solidarity and environmental responsibility”.

The MSRO commits itself to:

1. To guarantee to the PRODUCER appropriate conditions during the delivery of his goods;

2. To have prescribed working equipment and all required permits to receive the goods and to maintain them in

good condition until members take possession of them;

3. To organize the operational level logistics required for unloading point (s);

4. To demonstrate respect and to maintain warm and professional relationships with all MSRO members

(consumers, producers, employees and volunteers);

5. To ensure an operating transaction-oriented computer platform which allows the PRODUCER to promote, to

offer for sale and to manage orders made in a timely manner;

6. To pay the PRODUCER by online payment every Friday of the week which follows the delivery of the goods;

7. To manage a physical business location in order to ensure the smooth operations of the cooperative;

8. To promote the development of the MSRO by organizing and participating in promotional activities consistent

with the master plan in effect.

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On the other hand, the support member – PRODUCER commits himself to:

1. To certify that all information reported in the application request submitted to the MSRO are truthful. In the

event that changes have occurred compared to the application, the PRODUCER must update all required

information towards the MSRO Manager;

2. To offer for sale on the MSRO website the products listed and approved at the time he joined the MSRO as

support member (producer);

3. To deliver the products offered on the website respecting the quantities and the price specified and

corresponding to the orders made by the members-consumers;

4. To maintain the validity of required permits and to comply with the terms issued by the designated authority

(MAPAQ);

5. To inform the MSRO Manager, at least 24 hours before delivery, in the event that you are unable to deliver the

quantities ordered as anticipated;

6. To participate into the meetings of producers (at least once a year) and at the Annual General Meeting (AGM) as

member-producer in a view to contribute to the development of the cooperative;

7. To comply as member-producer with the regulations and terms and conditions specified in the MSRO Member

Guide, conditions that forms an integral part of the current agreement.

JURISDICTION

This agreement establishes the one and only full convention linking both parties;

The transfer of this agreement to a third party is forbidden;

This agreement is administered in accordance with the legislation in effect in the Québec province.

PROVISION FOR CONFLICT RESOLUTION OR COMPLAINTS

Obvious or repeating failures to respect one of the clauses of this agreement or one of the regulations or policies of

the MSRO, will result in the triggering of the process to manage conflicts and complaints, as described in the MSRO

Member Guide.

PRODUCER Initials MSRO CHAIRPERSON Initials

I have read and I agree to the MSRO

regulations and policies

I have forwarded to the producer the

MSRO regulations and policies

I have read and I agree to the terms

and conditions specified in MSRO

Member Guide

I have forwarded to the producer the

MSRO Member Guide

Signed at ________________________________, on _____________________________________

________________________________________ ___________________________________

Producer MSRO – Chairperson

Name: Name:

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8. QUALITY CONTROL OF SERVICES AND PRODUCTS

Manager’s Responsibilities

The Market Manager is empowered by the Board of Directors to ensure the quality of services of the MSRO and of

the products offered by the producers.

The management of operations of the market puts him/her in a strategic position to oversee the course of operations

and to propose solutions to improve the quality of services delivered.

When significant changes are required, the Manager must inform the Board of Directors and/or seek after their

assistance and their advice in order to make the best decision for the MSRO community.

Regular assessment of producing members

In order to maintain to a high level and to continually improve the quality of the offer of the MSRO, the Manager

assisted by the Producer selection committee, will carry out the re-assessment of producers at a rate of five

enterprises per year.

The enterprises/producers will be selected based on their seniority. This means that the 5 producers having joined the

MSRO first will be re-assessed for the first year and so on.

The assessment criteria used for this process are the same as for the evaluation of new members (see page 8 of this

document). The producers will be informed of the assessment process but they will not be advised exactly how and

when they will under examination. The selected timing will be based on the activities of the business in order to

review the production cycle at its peak period (for example, during the summer for field vegetables).

7. COMPLAINT PROCEDURES PROCESS

Whatever the origin of the complaint is, whether from a member (either producer or user), a volunteer or an

employee, the process applicable is the same. It is described in more details in the Member Guide.

The main steps are:

1. Receipt or filing of a complaint with the Manager

2. Verification and assessment of the findings by the Manager towards the complainant and the affected producer

3. Investigation if required (based on the seriousness of the fact findings)

4. Visit or re-assessment of the producer (if the manager deems it required)

5. Decision: facilitate, recommend or impose

6. Follow-up on the implementation of the proposed solutions

In the event of non-compliance or refusal to cooperate:

7. Disciplinary action: 1) verbal notice 2) written notice 3) notice of revocation of the agreement by the Board