Canada, BC: Ministry of Agriculture changes regulations to benefit breweries and distilleries

The B.C. Ministry of Agriculture has announced a change to regulations that threatened several brewery and distillery projects in the province, the Vancouver Sun reported on November 9.

The change repeals a 2015 rule that designated breweries, distilleries and meaderies in the Agricultural Land Reserve as farm uses only if at least 50 per cent of the farm product used to make the alcohol is grown on-site. That set them apart from B.C. wineries on ALR land, which are permitted to buy nearly all of the grapes they use to make wine from other farms. Breweries and distilleries were not.

Shortly after the rule was instituted, Persephone Brewing Co., a small brewery near Gibsons, petitioned the government to make the change to the Agricultural Land Commission Act.

“We just want to be treated the same as wineries,” said Persephone co-founder Mark Brand, a Vancouver restaurateur, in March. “We sought an exemption (from the act) and honestly we thought that would lead to change in the regulations. We were fairly certain those changes were on their way.”

“We can see what (relaxed regulations) have done for the wine industry — there are over 300 wineries in B.C.,” he said.

Harry Sidhu of Abbotsford noted that the 50-per-cent rule made is “almost impossible” for breweries to thrive on small land parcels in the ALR. The price of agricultural land in the Fraser Valley is too high to make grain a feasible crop, he said.

Amendments made to the Agricultural Land Reserve and subdivision regulation still require breweries, distilleries, meaderies, wineries and cideries operating in the ALR to produce at least 50 per cent of the farm product used to make the alcohol on the farm where the production facility is located. But if the farm is at least two hectares in area, they can partner with another B.C. farm to produce that 50 per cent on a three-year minimum term contract.

Businesses that do not meet these requirements can still submit an application to the Agricultural Land Commission to be considered for an exemption.

The updated regulation levels the playing field for British Columbia brewers, mead makers and distillers, said the Ministry of Agriculture, in a release.

“These changes reflect our commitment to make B.C. better for farmers and food and beverage processors,” said Minister of Agriculture Lana Popham. “We have heard loud and clear from local governments, the B.C. Chamber of Commerce and industry that these changes were needed to make things fair and equitable, and to support opportunities for economic growth in our province’s agricultural sector.”

“Amending the ALR regulations provides a much-needed balance for B.C. farmers and small businesses, particularly in the craft brewery and distillery industries,” said Val Litwin, president and CEO of the B.C. Chamber of Commerce. “Thanks to our local chambers, we have heard from our members that these changes will support economic growth and create jobs for many businesses and entrepreneurs in the province.”

Brewers are thrilled at the long-awaited update.

“The B.C. Craft Brewers Guild is very pleased with this outcome and the speed in which the government dealt with the unintended consequence of the regulations,” said Ken Beattie of the guild. “This change levels the playing field for brewers and will result in a positive economic impact for the brewing community and our partners in the agricultural community. These two industries working together will continue to create jobs and contribute to the provincial economy.”

14 November, 2017