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Chicken Farmers, processors address specialty markets policy

Wednesday, January 29, 2014

by SUSAN MANN

A provincial chicken processors’ association has withdrawn its appeal of an Ontario policy designed to recognize specialty chicken processing and production, but the matter is far from being resolved.

Chicken Farmers of Ontario’s board will be reviewing the implications of the processor association's withdrawal of its challenge to the specialty chicken policy, says Michael Edmonds, Chicken Farmers communications and government relations director.

The Association of Ontario Chicken Processors launched an appeal of Chicken Farmers’ policy to the Ontario Agriculture, Food and Rural Affairs Appeal Tribunal. The hearing was scheduled for Jan. 22 and 24 in Guelph. It was cancelled before it began because the association withdrew its appeal.
 
Mike Terpstra, executive director of the Association of Ontario Chicken Processors, says they withdrew the appeal to the tribunal “because we expect that our concerns are going to be addressed and we didn’t feel we needed to proceed with the tribunal at this time.”

The association is a voluntary industry trade association representing members on regulated marketing and other matters.

Terpstra says their biggest concern “is the source of supply for the specialty” markets policy.  The association “doesn’t feel that existing markets should have to give up supply for specialty markets.”

“We expect that whatever happens our concerns that we had expressed will be addressed,” Terpstra says. Chicken Farmers “will have to make some decisions on what they’re going to do with the policy.”

The policy, launched last year, is designed to meet evolving consumer-driven markets for Ontario-grown chicken, the Chicken Farmers website says. Specialty chicken is defined in the policy as any distinct chicken product produced through a unique production or processing method and sold exclusively to a distinct market that builds overall market growth.

The policy was initially scheduled to start in the A-119 quota period (Aug. 11, 2013 to Sept. 5, 2013), and the first round of applications were due by March 4, 2013. The kilograms of chicken for approved applicants comes from the total allocation the provincial supply managed organization receives from Chicken Farmers of Canada.

The policy was suspended while it was under appeal.

Edmonds says part of the board’s review will cover where things are at with the policy. “A number of applications had been made before this process (the appeal) began. We’ll have to review the situation and then determine next steps and how they (the board) want to proceed.”

Edmonds says he isn’t sure when the board will do its review. But generally Chicken Farmers puts any new developments on its website. “When we do have an announcement we would put it out in release there.”

One group that’s keen to see the board implement the policy as it stands is the Ontario Independent Poultry Processors group. Formed in 1999, the group represents smaller, independent processors serving niche markets, such as kosher or organic. It has five processor members.

The group’s general manager, John Slot, says their position is since the Ontario Chicken Processors Association has withdrawn its appeal to the tribunal, there’s no reason why Chicken Farmers can’t start accepting applications again and implement the policy starting in quota period A-125 (July 13 to Sept. 6).

Edmonds says he isn’t sure how many applications the new policy received last year. “There was a lot of interest when the program was launched last year.”

One matter that needs to be resolved is what happens with the existing applications. Slot says he’s been talking to some of their members who are saying “the kilos that were requested (in the previous application when the policy was first launched) might not be the same now. It could be less, it could be more.”

But it wouldn’t be difficult to adjust amounts of chicken requested, Slot explains. The industry stakeholders already agreed on the format of the application form so “our members could just submit different kilogram amounts if that’s what they feel they want to do,” he notes.

One interesting development in specialty chicken policy rules is the Ontario and national policies are different. In the provincial Chicken Farmers’ policy, special processing was recognized as part of the program and that means kosher-produced chickens and Hong Kong style chickens, with the head and feet left attached to the chicken’s body, would qualify. The Chicken Farmers of Canada specialty chicken policy only “relates to breed. Obviously the two policies don’t match,” Slot says.

What are the implications of that difference? Slot says “that’s going to be the interesting part. Will CFO (Chicken Farmers of Ontario) agree to the CFC (Chicken Farmers of Canada) policy or will the CFO stick to their policy?

“We’ll just have to wait and see what CFO is going to do.” BF

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