Esskay Dairy
Ltd., which plans to process lassi, a type of yogourt, at the dairy in Millbank, has gained the approval of the Ontario Agriculture, Food and Rural Affairs
Appeal Tribunal.
The tribunal
sided with the agriculture ministry director who granted the company a licence
to rebuild the facility under the authority of the Ontario Milk Act.
The Ontario Dairy
Council filed the appeal, arguing that any milk going to the new plant would
decrease supplies to its processing-company members who are already on rations
and unable to get as much milk as they want.
The tribunal said
it appreciates that concern, but noted that the milk act wants a regulatory
regime that stimulates the industry and expands opportunities for employment.
Azad Damani of
Kitchener told a public hearing the tribunal conducted last fall that he
intends to hire 15 to 20 people, to purchase up to 400,000 litres of cows’ milk
and to blend it with sheep milk he will buy from Quality Sheep Milk and about
40,000 litres of goats’ milk, including supplies already lined up with Ed Zehr
who farms near Newton.
Damani said the
product he intends to produce, which is a type of yogourt, is unique. Tom Kane,
speaking for the Ontario Dairy Council, argued that other processors are
already supply lassi to ethnic-community customers in the Toronto area.
The tribunal
noted that Esskay Dairy will be well outside of Toronto, that it has the
potential to increase the demand for milk and to displace some imports.
It also noted
that if and when Esskay wants to expand to more than 500,000 litres, it will
need government approval to build an addition to the plant and the Ontario
Dairy Council will have another chance then to raise concerns about milk
supplies.
Kane also
outlined existing and planned supply-management policies that Esskay might use
to get the milk it requires without cutting into allocations to existing
processing plants.
“All of the
benefits, (outlined during the public hearing) if realized, would advance the
legislative purpose of stimulating, increasing, and improving the producing of
milk within Ontario,” the tribunal wrote in its decision posted recently on its
website.
“ While many of
the benefits are only potential, such is the case with any new business and for
any new entrant into the dairy industry.
“Only time will
tell whether those benefits are realized, but denying Esskay Dairy's
application for a permit, as requested by ODC, does nothing to stimulate,
increase, or improve the producing of milk within Ontario,” the tribunal wrote.
Damani could not
be reached for comment or an estimate of when production might begin.
