Monday, July 30, 2012

Chicken industry plans are secret



The chicken industry is intent on keeping its plan for the industry a deep, dark secret.

In a response to a request filed under the Freedom of Information Act, the government has censored all but two tiny graphs from 17-page document.

On the covering page is a highlighted statement that all of the contents are “proprietary and confidential and for the exclusive use of the Chicken Industry Advisory Committee, a committee of the Chicken Farmers of Ontario (marketing board).”

The committee was formed by the Ontario Ministry of Agriculture, Food and Rural Affairs under its Ontario Farm Products Marketing Commission.

The commission also appointed the chairman (its vice-chairman, Elmer Buchanan) to chair the committee and provided a couple of members.

Others on the committee represent the marketing board and the Association of Ontario Chicken Processors. 

The Ontario Independent Poultry Producers association was denied a seat at the table.

The slim pickings that are revealed as a result of Freedom of Information point to a radical change in the entire structure and mission for the chicken industry.

Instead of the chicken board running supply management for farmers, it makes a call to “modify pricing mechanism to align producer/processor incentives.”

The chicken board has authority to price birds to recover the full cost of production plus a reasonable return on labour, management and investment. It says nothing about processor interests.

The graph also calls for producers and processors to “collaboratively develop a new allocation approach.” It’s difficult to judge whether that is happening as a result of the deal to stop trade in live chickens across the Ontario-Quebec border.

It also calls for efforts to “build a business partnership culture.”

Under a heading to grow the market, the graph says they will “continuously identify and pursue efficiency across the value chain.”

More important, it says they will “implement target marketing to grow consumption and preference” and will “capitalize on the potential in the Market Development Program, focusing on high value opportunities.”

That implies a radical overhaul of how the Ontario chicken board allocates any “market development” quota it obtains from the national agency. It has been sharing that pro rata among all processors, making it difficult for a single company with a bright idea to exploit that potential.

A case in point is CAMI International Poultry Inc. of Welland which has developed a large market for New York dressed (head and feet on) chickens that are hand-slaughtered and air-chilled to satisfy the demand from the Chinese market in the Toronto area.

The chicken board has so far refused to supply CAMI with enough chicken to maintain its markets after the no-trade deal with Quebec takes effect in September.

It has enough "market development" quota to satisfy CAMI, but has spread it around all processors, including the biggest ones who have said they don't want any increase in Ontario's allocation frpm tjhe national agency under this program.