Wednesday, June 4, 2014

Slot out, Thompson in at chicken agency

Kevin Thompson has won election to be the representative for the Further Processors Association of Canada at the Chicken Farmers of Canada’s board of directors.

He replaces John Slot of Moorefield who has a long involvement in chicken-industry politics and in recent years has been spokesman for the Ontario Independent Poultry Processors Association.

Thompson was head of the Association of Ontario Chicken Processors, which represents the large-volume chicken processors, then went to work for Sargent Farms, a relatively large-volume chicken processing company based in Milton. He was also once a senior employee of the Ontario chicken marketing board and an employee of Maple Lodge Farms Ltd. of Norval, the largest chicken processor in the province.

Thompson’s election came in the midst of a long battle between small-volume independent chicken processors in Ontario and the large-volume processors.

The small guys want more chicken to expand their niche markets. The large-volume processors want to keep chicken production down so they can keep prices up and never have trouble moving inventories.

The big processors approach has led to rationing of chicken among processing plants, a ban on trade in live chickens between Ontario and Quebec, and a lack of chicken for the Ontario kosher and Hong Kong dressed (feet and heads left on) in Ontario.

The chicken-rationing system and the ban on live-chicken trade with Quebec are both intended to eliminate premiums processing companies were offering to get more chickens.

The chicken-rationing system has given rise to a value placed on the processing-plant right to Ontario-grown birds. That, for example, is how Chai Kosher Poultry of Toronto made a windfall profit by selling out to Sargent Farms. However, Sargent Farms does not process to kosher standards, so that market had only one Canadian source left, a plant in Montreal that was unable to keep up with demand so hiked prices.

The Ontario chicken marketing board is currently calling for proposals to serve the kosher market.

A big question remains, however, whether the Ontario board will take chickens from all Ontario processors to meet the kosher-market demand or will await approval from the national agency to grow more chickens to meet the kosher-market demand.

That’s one of the issues Thompson will be pondering as a director of Chicken Farmers of Canada representing the Further Processors Association of Canada.