Monday, September 12, 2022

Wellington Poultry sold

Amir Quality Meats Inc. has acquired a processing facility and associated supply from Wellington Poultry Ltd., based in Arthur, Ontario.

Wellington Poultry Ltd. is a provincially licensed processing facility that has served the Ontario specialty breeds market and mainstream markets for over 18 years. 

Murray Opstein, chairman of Chicken Farmers of Ontario marketing board, welcomed the transaction.

Amir Quality Meats is an  independent family-owned Halal meat processors and distributors serving the Toronto area and markets across Canada. 

“We are excited about the future of this industry,” said Sherry Aziz, chief financial officer for Amir Quality Meats. “We see lots of opportunities to continue to build strong relationships with the growers and grow the marketplace - providing Ontarians with continued access to chicken choices.” 

The marketing board issued a statement thanking Wellington Poultry for its “longstanding commitment to the industry. “

One of the issues here is that the marketing board encourages the establishment of new processing companies to serve niche markets, but when the company finds greater markets, the company has to buy or rent plant supply quota from the larger and established processing companies in the industry.

The plant supply quota system was established to rein in the aggressive bidding by Ontario and Quebec processors for greater supplies from farmers. 

So either the processors are engaged in destructive aggression or the marketing boards are not willing or able to produce enough to satisfy demand.

Something similar exists in the dairy industry.

It's evidence that supply management is a flawed system.