Laplante wants to expand its poultry processing business and
sought tribunal and court approval for chicken that was being processed by Remy
Poultry Inc.
But Remy sold its plant supply quota to Riverview Poultry
Ltd. of Smithville and both the tribunal and the court have ruled it can’t go
to Robert Laplante’s company.
The plant supply quota has effectively moved from Eastern
Ontario into the Niagara Peninsula.
Laplante has been seeking another 286,553 kilograms of base
quota from the Chicken Farmers of Ontario marketing board. He has 156,449
kilograms.
The entire plant supply quota system is controversial. It
has left some Ontario processors chronically short of chicken; that was
especially problematic for small-scale processors developing niche markets.
Alberta has argued that Ontario ought to scrap the plant
supply quota system and allow open competition among processors for Ontario’s
limited supply of chicken production.
But when that was the policy, processors bid higher and
higher prices, well above the “reasonable return” that is supposed to be the
standard for supply management.
One wonders how this whole complex network of regulations is going to cope with intense competition from imports if and when import restrictions are relaxed via international trade agreements.