Thursday, February 21, 2013

Chicken farmer blasts CFO


Glenn Black, a small-flock chicken farmer on Manitoulin Island, has sent a blistering letter of complaints about the chicken marketing board to the Ontario Farm Products Marketing Commission.

Black says small-flock owners market only 0.033 per cent of the chicken in Ontario, yet the Chicken Farmers of Ontario marketing board treats them like a threat to their market.

It also imposes unfair biosecurity standards, he says, arguing that the threat from diseases is far greater on a “mega farm” and “monoculture” operation.

He also notes that the marketing board had a seven-year cycle to audit its quota holders for compliance with food-safety protocols, recently reduced to a three-year cycle, but still, Black says, far short of standard industry practice of meeting standards, such as ISO, within one year.

He says the large farms also pose greater biosecurity risks because there are more industry specialists visiting their barns, there are shared resources and common sub-contractors each working at a number of different farms , and some of the largest operations involve “multiple staff members and distributed authority, jobs, and extended lines of communication, thereby lowering the probability of timely detection of biosecurity issues and disease outbreak.”

Black wrote the commission that “contrary to CFO’s concerns, it is the chicken production factories that place the small flocks at greatest risk, for many small flocks are just 1.6 k km away from these
disease powder kegs of the megafactory chicken producers.”

He says “CFO’s regulations, training, auditing, and enforcement action on these chicken
disease powder kegs of the quotabearing chicken production factories appears to
be diluted, delayed, glacially slow in its implementation, incomplete and mediocre.”

He also cites Canadian Food Inspection Agency data to complain that there is a far higher rate of condemnations for Ontario-grown chickens than in Atlantic Canada.

“Where is CFO’s sciencebased proof that the Ontariowide weighted level of current
compliance by small flock chicken farmers to accepted industry practices is more
hazardous that the Ontariowide weighted level of current compliance by quotabearing
mega chicken factory producers?”

He complains that Manitoulin Island is ignored by chicken board policies.

Were a quota holder to set up there, his chickens would have to be trucked hundreds of kilometers south to the nearest processing plant, then the processed chicken has to make it north again to satisfy local consumer demand.

This complaint is familiar to the commission because a Manitoulin-Island producer who runs a government-inspected and licensed packing plant was unable to get a break from the chicken board to produce fo the local market. He was told two years ago that he would need to buy quota from an existing producer and he said the prices made that an impossible business proposition.

But Black takes a different tack, arguing there are small-flock owners on Manitoulin Island and across Northern Ontario who are denied any vote or voice on marketing board policies and programs.

Because they are left out by the CFO, he argues that the commission ought to exempt them from marketing board controls.

If they are, however, to continue to be included under CFO controls, then the commission needs to insist that the CFO include them in its development of policies and programs.

Black complains that the small-flock chicken farmers can’t even get into the annual general meeting of the chicken board.

He argues that the chicken board has failed in its responsibilities to the public, especially the large segment of the population deemed relatively poor.

He says that as the cost of production and chicken prices have risen, so has the profit margin for producers. That, he argues, is not fair to the public.

He recommends that Ontario marketplace be divided into three categories – one for mega-farms, a second for smaller-scale operations and a third for imports.

He says allocations from the national agency ought to be shared between the two local producer categories according to their performance in meeting quality and food-safety standards.

In the event of a marketplace crisis, he says the category for imports could be shut down first before production cuts are required and imposed on the other categories.

A new general farm organization, Progressive Farmers of Ontario, has also taken up the issue of CFO treatment of small-flock owners.

The proposals it presented to the CFO have been rejected by the board of directors.

Sean McGivern, leader of that organization, has said they plan to file an appeal with the Ontario Ministry of Agriculture and Food Appeal Tribunal. So far no date for a hearing has shown up on the tribunal’s website listing of appeal hearings.

Wednesday, February 20, 2013

CAMI fights for survival



WELLAND – Jimmie Lee, owner of CAMI International Poultry Inc., is fighting for business survival in a market where supply-management marketing boards have stacked the odds against him.

Not only are the marketing boards refusing to supply him with Canadian-grown chickens to fill orders from eager customers, including many Chinese and other immigrants in the Greater Toronto area who for religious and cultural reasons want his products, but they are now trying to block his access to imported chickens.

The Chicken Farmers of Ontario marketing board has refused to replace about 600,000 kilograms of live chicken he was buying from farmers in Quebec before the Ontario and Quebec marketing boards signed a deal to stop inter-provincial movement of live birds.

The Chicken Farmers of Canada, the national agency for provincial marketing boards, has blocked Lee’s application to buy birds from the United States because it says it can meet his needs.

However, the national agency is offering already-slaughtered birds which will not meet the specifications Lee’s customers demand. They want Hong Kong dressed birds which means they want the head and feet left on.

Nor do the already-slaughtered chickens meet a number of other customers’ specifications, such as roaster-weight birds that are air chilled, hand-slaughtered Halal-protocol slaughter for Muslims, etc.

Lee has filed a court challenge to gain the right to import chickens that the marketing boards are refusing to supply.

Because of the way the bureaucratic system works, his challenge is to a ruling by the Department of Foreign Affairs and International Trade, but DFAIT is acting on protocols outlined by an agreement with the supply-management system managers.

Lee has been successful with an application to DFAIT to participate in another program in which the national chicken agency has no right to interfere. That policy allows Canadians to import raw materials, do some processing in Canada, and then export the finished products.

That government policy is designed to exempt companies from import barriers, such as tariffs and quotas, so they can provide jobs and business for Canadians.

Lee has customers lined up in China, Hong Kong and Dubai.

As for his application for imports to make up for what the supply management system has taken away, "they are trying to make life difficult for us,” says a frustrated Lee.

In his quest for chickens, Lee has gone as far as Nova Scotia to buy a truckload of birds.

“How can marketing boards be so powerful that they can put people out of business?” Lee asks.

What’s more, Lee has broken no laws or marketing board regulations. He says he has no arguments with the concept of supply management to support farmers.

He “played by the rules,” says industry veteran John Slot who is a past chairman of Chicken Farmers of Ontario and director of Chicken Farmers of Canada. “He has done nothing wrong.”

But he knew long before Ontario and Quebec signed an agreement last year to stop inter-provincial trade that he was going to lose 70 per cent of his supply of chickens.

The Quebec and Ontario chicken boards and the two dominant associations representing chicken-processing plants indicated they would cut off out-of-province purchasing.

But their deal included provisions to replace the out-of-province birds they were buying with home-province birds. Except CAMI and one other Ontario processor.

That other processor threatened a lawsuit and the Ontario board and major processors, members of the Association of Ontario Chicken Processors (AOCP), settled out of court by supplying him with Ontario-grown chickens. 

That processor, I happen to have found out, is Cericola Farms. Cericola also became a member of the AOCP.

Lee neither sued nor joined the AOCP. He stuck with the Ontario Independent Chicken Processors association.

John Slot, who manages the OIPP, figures it’s his personal involvement that has engendered the determined opposition from the chicken marketing board and AOCP.

“They don’t like me,” says Slot. During public hearings before the Ontario Farm Products Marketing Commission, the AOCP spokesmen termed Slot "a disruptive force," but when challenged to provide backing for that claim, offered no evidence. Slot countered that he has a track record of working hard to co-operate with the marketing board to find policies and ways to ensure that Ontario processors and their clients can be fully supplied with Ontario-grown chickens.

Slot says personality clashes are no reason to persecute Lee and CAMI International Poultry Inc. “Jimmy is a really nice guy. He has done nothing wrong.”

Slot says it’s not only Lee who is being punished, but also his loyal customers.

He says it’s ludicrous that members of certain religious and ethnic communities in the Greater Toronto area, the largest multi-ethnic community in the world that is living in peace, are denied the right to buy the food they want.

He is issuing two challenges to Ontario Premier Kathleen Wynne who is also Ontario Agriculture Minister:

“First, I challenge her to explain how this has happened.

“Second, I challenge her to fix this problem. 
Do the right thing” by supplying CAMI with 600,000 kilograms of live chickens per six-week quota period “to replace the chickens that Chicken Farmers of Ontario and the Ontario Farm Products Marketing Commission (which supervises the chicken board) took away.”

And Slot is challenging Prime Minister Stephen Harper and his Trade Minister Ed Fast to grant Lee’s request to import chickens to make up for what he has lost from his Quebec suppliers until Wynne resolves that situation. 

“I have always been in favour of supply management,” says Slot, “but supply management is not above the law. Lee legally bought chicken (from Quebec farmers) and paid his (marketing board) levies.

“This has gone far beyond a matter of supply management. What is being done here violates the Canadian constitution, it violates property rights, it’s not legal.”

And Slot is appealing over the head of marketing board leaders, asking chicken farmers to remember that David Fuller, the longest-serving chairman of the Chicken Farmers of Canada, often reminded chicken farmers that “supply management is a privilege, not a right.”

Eugene Whelan dies


Senator and former agriculture minister Eugene Whelan has died of complications following a stroke last summer. He was 88.

Whelan was the most popular agriculture minister Canada has had in several generations, famous for his green Stetson, outspoken opinions and folksy speeches.

He languished in the back benches of Parliament for 10 years after his first victory as a Liberal in Essex-Windsor in 1962. During the 1972 election campaign under Pierre Trudeau, he published his own agriculture policy platform that differed from the official Liberal Party platform and then-agriculture-minister H.A. (Bud) Olson, a relatively right-wing cattle rancher from Alberta.

Whelan was definitely left wing espousing policies that aligned closely with the New Democratic Party and the National Farmers Union.

Trudeau appointed him agriculture minister and gave him free rein, including patience to allow him to attack Beryl Plumtree after Trudeau appointed her head of his Food Prices Review Board.

That cemented Whelan’s popularity among farmers as he threatened to “chop down the Plumtree” and insisted that “food in Canada is a bargain” and that the public could “either pay me (high prices for food) now, or pay me later (if low prices drove farmers into bankruptcy).”

That bloom faded at the end of the 1970s when interest rates spiked and many farmers, especially the young and most aggressive entrepreneurs,  were bankrupted in 1980-82. Whelan had increased loan limits for young farmers, but then the federal government had to bail out the Farm Credit Corporation (now Farm Credit Canada) with about $2.5 billion to write off government loans to the crown corporation.

Whelan lost his cabinet post when Joe Clark’s conservatives took power in 1979, but he was back in 1980 and remained until he backed Jean Chretien for leader of the party in 1984, but John Turner was chosen. Turner tossed Whelan for Ralph Ferguson, an Ontario farmer.

Turner appointed Whelan ambassador to the World Food Programme in Rome, but Brian Mulroney, famous in a televised election debate for lecturing Turner that he had a choice to reject patronage appointments, swept into power and eliminated Whelan’s appointment. At the time, Whelan spurned offers of an appointment to the Senate; he felt it should be abolished.

He changed his mind when Chretien appointed him to the Senate in 1996.

Whelan is often wrongly credited for introducing national supply management. It came first to the dairy industry in the mid-1960s and it was Olson who introduced the legislation for national supply management for all other commodities in 1970 and got it passed before the 1972 election. 

Olson was no fan of supply management, but was convinced it was necessary to end a vicious inter-provincial “chicken and egg war”.

It fell to Whelan to defend supply management when the Canadian Egg Marketing Agency botched supply management, piling up surplus eggs that rotted in improper storage in 1974. 

He was agriculture minister when the turkey and broiler chicken industries got around to setting up national marketing agencies.

He was passionate about helping feed the world and his daughter, Susan, carried on that passion after she won election in the same riding of Essex-Windsor and was named to the cabinet post responsible for the Canadian International Development Agency.
Whelan served on the World Food Council.

He also hosted Mikhael Gorbachev when he was Russia's agriculture minister and before he became Russia's Prime Minister.

Among places Gorbachev visited was the Seagram-owned beef feedlot near Kitchener where the company fed cattle distiller's mash, a practice that has become widespread with the distillation of ethanol., although that mash is dried for easier transportation and handling.

Monday, February 18, 2013

Better lunches spurned


You can serve school children better meals, but you can’t make them eat.

A school district in Illinois tried putting healthier foods on the menu, including fish and baked-bean burgers.

“This past year and a half, we added entrées that had exceptional nutritional qualities, with the hopes to change our students' eating habits,” reads a note on the Feb. 5 elementary school lunch menu.

“Unfortunately, we could not persuade the students to select these items.

“Beginning in February, we will no longer offer two hot choices on the menu due to the extremely low participation of the second choice.

“We will continue our efforts to educate our students in the value of choosing nutritionally dense foods.”

Now their choices will be “cold items such as a turkey sandwich, yogurt combination, or hummus and flatbread and hot items like hot dogs, hamburgers, cheese pizza, chicken nuggets, tacos and mini pancakes with Canadian bacon.”

Canadian bacon? Now, if it’s really Canadian – as they could determine under Country-of-Origin Labeling legislation and regulations, we might send up a cheer.

But they still might not eat it.

Salmonella hide in beef lymph nodes


Guy Loneragan of Texas Tech University says salmonella can be inside the lymph nodes of cattle, making it virtually impossible to keep the harmful bacteria out of hamburger and many other beef products.

Yet David Plunkett of the Center for Science in the Public Interest continues to lobby for zero tolerance for salmonella in beef, matching the standard for E. coli 0157:H7.

In any case, salmonella and lymph nodes is emerging as the biggest challenge the beef industry has ever faced,” says food safety communications expert Dr. Doug Powell.

During a panel discussion at MeatExpo ’13, other panelists said that means the only way to eliminate the bacteria will be to irradiate the meat at the packing plant.

But others say taking action before the cattle head to the packing plant is a possibility.  Vaccination is one of those options, they said. Probiotics and chemical inhibitors were also mentioned.

Al Almanza, who works for the federal government’s Food Safety and Inspection Service, said what’s needed before any action is more and better data to properly understand the problem, yet others said if salmonella really can be inside lymph nodes, more and better data won’t help much.
                                  

Chicken board eyes specialty markets


The Ontario chicken board is introducing a new program to exploit specialty markets.

It is inviting its quota-holding members and/or processing plants to submit business plans for developing new markets, ones that do not cannibalize existing markets, and is offering to supply them with chickens to meet their needs.

It may be a coincidence that this program comes on the eve of final negotiations with the national agency that should yield a major increase in the volume of chicken that Ontario will be allowed to produce.

The program was quietly launched with a posting on the Chicken Farmers of Ontario website a few days ago and gives the industry only a couple of weeks to meet the deadline of March 4 for applications.

Those who miss this deadline can try again in October which will be the annual application deadline for the next five years.

The board is calling for proposals to produce specialty chicken that is:
         “Any distict chicken product (unique growing or processing method) AND
         “Sold exclusively to a distinct market AND
         “Build overall market (without cannibalizing conventional chicken markets).”

The board will appoint a panel of four to six people to evaluate applications and make annual recommendations to the board.

While the program will be evaluated every year, it will be up for total review and/or renewal five years from now.

That policy review is to include the Ontario Independent Poultry Processors association, not just the Association of Ontario Chicken Processors.

The OIPP has been frozen out of membership on a Chicken Industry Advisory Committee that was formed in 2012 and is chaired by the Ontario Farm Products Marketing Commission.

During public hearings when the OIPP appealed that exclusion, there was testimony about work between the OIPP’s John Slot and chicken board staff to develop this program, but it was shelved because of opposition from the Association of Ontario Chicken Processors.

The chicken board says this new specialty market policy will be closed to farmers participating in the Market Development Program. That program has granted additional production volume to all processors on a pro rata basis, but they have to convince the farmers who supply them to participate by increasing production.

The board is going to charge five cents per kilogram for participation in the specialty market program.

Packer shutdown no idle threat


United States Secretary of Agriculture Tom Vilsack said Friday he is not crying wolf when warning that meat processing plants could go out of business if Congress fails to pass a budget by March 1.
“Every production line needs an inspector at the end, and if we have to furlough them, then production will stop,” Vilsack told the Des Moines Register editors and reporters Friday.
If they are shut down, it will cost the U.S. economy about $10 billion, according to an estimate from the United States Department of Agriculture.
Tom Vilsack
“This would be horrible,” Vilsack said. “Not only would the inspectors be furloughed, but the production workers at the plants could be laid off as well.”
The cuts to meat and poultry inspections are part of a package that will take effect March 1 if politicians fail to develop an alternative budget.
Debbie Stobenow
A proposal from Debbie Stobenow, chair of the Senate Agriculture Committee, is calling for a $27.5 billion cut in direct subsidies to farmers as an alternative to the layoffs, but admitted she has not yet consulted Republicans.

The USDA does inspections for red meat, poultry and eggs. The Food and Drug Administration inspects other food, drug and cosmetic production and would be forced into a similar reduction of inspections.