The Turkey Farmers of Ontario marketing board has lost $1.7 million and 2.3 million kilograms of production in an arbitration to settle a dispute that arose from production in fiscal 2013-14.
The national agency claimed Ontario exceeded its production limits and announced a fine and reduced allocation.
The Ontario board appealed to the national council that supervises supply-management agencies, but withdrew that appeal when both agreed to arbitration.
Ontario argued that the penalty should have been only $154,695 and the production cut only 703,150 kilograms.
The Ontario board is now talking to the national agency about how the penalties will be applied.