Friday, January 13, 2012

LaPlante poultry appeal adjourned




Ottawa – The appeal tribunal hearing that was to be held here Jan. 17 to deal with concerns raised by  LaPlante Poultry Ltd. of Sarsfield has been adjourned.

There is no indication about whether or when the appeal might proceed.

LaPlante runs a poultry-processing facility that processes a variety of birds, including ducks and chickens from Quebec.

According to people familiar with the business, LaPlante is seeking chicken-processing quota from the Chicken Farmers of Ontario marketing board. Robert LaPlante has not returned many telephone calls seeking comments about his appeal.

The Ontario chicken board allocates birds raised by its members to processing plants, mainly because demand is greater than supply, there have been premiums offered to gain more birds and the existence of widespread premiums undermines the integrity of supply management.

In fact, the chairman of the Ontario Farm Products Marketing Commission, the government-appointed body to supervise marketing boards, has warned chicken producers that the persistence of premiums cannot be tolerated.

LaPlante is only one of a number of small-scale chicken-processing companies that have been frustrated by their inability to buy enough chickens to meet their customers’ demand.

The processors began buying in Quebec which prompted Quebec processors to begin buying in Ontario until about 10 per cent of the birds from each province are now going to the other province. The marketing boards in the two provinces reached agreement to temporarily cap that inter-provincial movement while they looked for more complete solutions.

A Quebec court has since ruled that the cap must be removed.

The two provincial marketing boards have a tentative deal to stop the inter-provincial movement of chickens, but now they are waiting for the Quebec government’s supervisory body to decide whether the deal they have struck can be implemented. The issue there is also enough chickens to satisfy the demand of tiny processing businesses.

If Quebec grants approval, Ontario is poised to soon follow.

That leaves an open question about whether the small-scale processors in both Ontario and Quebec will be granted enough birds to meet their demand. If not, there could be court challenges.