Monday, July 23, 2012

Ontario board drops the hammer



Marvin Ungerman, the famous boxer turned chicken farmer, is ready to punch out the chicken marketing board.

He learned from his Quebec processor on Thursday that he will have to find a new processor in Ontario.

He was stunned that the ban on Quebec-Ontario trade in live chickens came so suddenly without any notice from the chicken board.

“I’m two weeks from placing my chicks, and now I have to suddenly make arrangements,” he said.

A staff person at the chicken board said he should have known this was coming because the board has been saying for months that the deal will take effect with the beginning of the next six-week quota period in September.

Ungerman said he’s not the only one who was caught by surprise. Even senior executives at Maple Leaf Foods Inc. were surprised, he said of a friend there.

Ungerman is also angry that the chicken board has been circulating a list of all of the Ontario farmers who were shipping birds to Quebec processors to Ontario chicken processors.

He said his out-of-province business ought to be confidential.

“I wondered why I was getting calls from Ontario processors,” he said, “asking me what I was going to do” after September.

He said he’s likely to end up being forced to ship to Maple Lodge Farms Ltd. “which I don’t want to do. I had experience with them before.”

Maple Lodge is apparently one of the Ontario processors who will be short of chicken as a result of the trading ban.

Quebec processors are looking for about 800,000 kilograms of chicken from their farmers to replace contracts they had with Ontario farmers.

What’s not clear is whether Quebec succeeded in getting enough additional quota to offset losses to Nadeau Poultry Ltd. in New Brunswick, a wholly-owned subsidiary of Maple Lodge.

As recently as last week, that demand was seen by some as a deal breaker.