The Ontario Dairy Council has launched an appeal against
development plans by Agro-Farma Canada Inc.
The Ontario Agriculture, Food and Rural Affairs Appeal
Tribunal has set aside five days in late June for public hearings on the appeal
at Milton.
The Council has consistently opposed applications that would
increase competition for limited supplies of milk, but has also been losing
recent appeals because both the Dairy Farmers of Ontario marketing board and
OMAFRA favour companies who aim to increase sales by launching new products
that displace imports.
Agro-Farma makes Chobani, a Greek yogourt that is a
sensational success in the United States.
It has a temporary permit from the federal government to
import Chobani for the Canadian market, but Canada’s major yogourt makers have
filed suit in federal court to upset that situation. That case is due to be
heard April 24.
The company, based in New Berlin, New York State, wants to
open a plant to produce Chobani in Ontario so it won’t need to continue to rely
on a risky special status for importing.
The Ontario Dairy Council will argue that there are other
processors in Ontario who are producing Greek yogourt, such as for Loblaws
President’s Choice label so what Agro-Farma plans to offer is not an entirely
new product for the Canadian market.
Until this winter, milk for making yogourt was supplied without
limit to processing plants. That changed to include yogourt in a program that
rations milk supplies to make various types of dairy products, such as butter
and cheeses.
Because of the rationing, the milk that Agro-Farma would use
would result in reduced milk supplies for existing processors.
