It will take more than a week for public hearings into a detailed, highly-technical pricing dispute between the marketing board representing farmers who produce hatching eggs and the Association of Ontario Chicken Processors.
The hearing got off to a rocky start Monday morning when Trent Johnson, lawyer for the Ontario Broiler Hatching Egg and Chick Commission, objected to the inclusion of power point slides that a witness for the Association of Ontario Chicken Processors wants to present.
Johnson argued that this form of presentation has already been ruled out in previous hearings at the commission, that the processors did not provide adequate notice that they intended to again try to use this controversial information format and that the processors might try to sneak in new evidence that was not presented during the commission hearings.
Glenn Walker, who is presiding for the Ontario Ministry of Agriculture, Food and Rural Affairs Appeal Tribunal, gave Johnson time to review the proposed presentation to determine whether it does, indeed, include new evidence.
The nub of the dispute is the price the commission charges hatcheries for eggs, and more specifically, the returns for capital and labour the commission has incorporated into its cost-of-production formula which leads to the prices it sets.
Geoff Spurr, lawyer for the Chicken Farmers of Ontario marketing board, is also participating, supporting the hatching egg producers and arguing that the commission formula is quite similar to the Chicken Farmers of Ontario’s cost-of-production formula.
He said the processors have also challenged the chicken-board’s formula so it’s keenly interested in the arguments and outcome of the hatching egg industry appeal.
The hatching egg commission relied on the 2015 labour component in the chicken industry’s cost-of-production formula.
However, that cost-of-production formula was substantially altered and lowered grower’s prices on orders from the Ontario Farm Products Marketing Commission.
The chicken processors want hatching egg prices reduced which would, in turn, be reflected in the chicken board's cost-of-production formula and reduce the price processors must pay for chickens.
While the tribunal has set aside the entire week for the hearing, Walker indicated at the opening session that it will probably take longer.
