Skotidakis Goat Farm must post a letter of credit for $3,333,333.33 to continue to pursue its appeal against a demand from the Dairy Farmers of Ontario marketing board that it pay $13,244,529.00.
The marketing board said Skotidakis processed dairy products from milk it bought from the marketing board at low prices. The board said its audit shows that Skotidakis ought to have paid higher prices for the milk based on what was made.
The marketing board said three audits found that Skotidakis’ records were incomplete and unreliable, prompting it to rule that Skotidakis should have paid the Class 2(a) price for all milk it bought, demanding $1,820,529.93 based on earlier legal action and a settlement reached on June 24, 2016, and a meeting to deal with Skotidakis record keeping.
The Ontario Ministry of Agriculture, Food and Rural Affairs Tribunal has issued a report on the beginnings of the Skotidakis appeal, writing that “the essence of the appellants’ position is that DFO’s authority as a regulator of milk producers does not authorize DFO to regulate milk processors such as the appellant.”
The tribunal report reveals that the DFO wanted Skotidakis to post security of $13,244,529.00.
It based that on an estimate of $7,095,000 owing for milk purchased between October, 2016, and July 2017); $4,329,000 for December, 2018 ,to July 2019), and $1,820,529 for the settlement in June, 2016.
The tribunal wrote that “the validity of the estimated amounts is in issue in this appeal. The Minutes of Settlement (for June 24, 2016) are also challenged in this appeal.”
The tribunal said these issues and amounts will be settled once the appeal concludes and in the meantime, it ordered Skotidakis to file “a letter of credit, or other security acceptable to DFO and approved by the Tribunal, for $3,333,333.33.”
