Restaurant association calls secrecy over Ontario's chicken pricing 'unacceptable'
Thursday, December 18, 2014
by SUSAN MANN
The association representing Canada’s restaurants has asked Premier Kathleen Wynne to bring accountability and transparency to Ontario’s chicken pricing system.
In an open letter dated Dec. 16 and sent to the premier, James Rilett, vice president, Ontario for Restaurants Canada, says it’s “unacceptable” that Chicken Farmers of Ontario hasn’t made public its current pricing formula. It’s also unacceptable that chicken farmers, who have the greatest stake in the setting of chicken prices, “should be in charge of the price-setting program.”
Michael Edmonds, Chicken Farmers of Ontario communications and government relations director, says by email the organization “will not be commenting on the letter at this time.”
A spokesperson for Premier Wynne couldn’t be reached for comment.
Ontario Agriculture, Food and Rural Affairs Minister Jeff Leal says by email supplied by his press adviser that Ontario is “firmly on the side of our farmers and the supply management system.”
The provincial government remains “committed to maintaining the supply management system protecting Ontario producers, processors and consumers and creating jobs and economic growth across the province,” he notes.
Earlier this fall the Ontario Farm Products Marketing Commission posted a proposal on Ontario’s Regulatory Registry to change the method used to determine minimum live chicken prices. The current method to determine the minimum live prices farmers are paid has been in place since 2002. Comments were due by Nov. 6.
Rick Hall, Restaurants Canada federal policy director, says farmers have been given three years to come up with a new system and it’s still not done. Hall says their letter included a request that the premier direct the commission to release the information about the current pricing formula and the new replacement formula.
The association also asked the premier to ensure an independent third party with no affiliation to the chicken industry is appointed to swiftly complete the pricing review. Interested stakeholders, such as Chicken Farmers of Ontario, the restaurant association and others “can then play a useful role as interveners before the established open forum of discussion and debate,” the association’s letter says.
The restaurant association wanted to comment on the new pricing proposal but first asked in October that the commission provide it with information on how the current cost of production formula works and for a copy of the proposed amendments along with proposed prices and costs. It also tried to get that information through a freedom of information request. The association didn’t get the information it said it needed to provide comments and missed the deadline, Rilett says. “They wanted us to comment on the cost of production formula without seeing the cost of production formula.”
Despite that the restaurant association has been highly critical of dairy supply management in the past, Rilett and Hall say the way the Canadian Dairy Commission annually researches and publicizes the pricing formula for dairy can be used as a model for the chicken price setting system. The dairy commission also consults with stakeholders, such as the restaurant association, on the pricing formula.
In addition, the dairy commission has independent, third-party firms audit dairy farmers about their current and projected input costs for the upcoming year “as a way of arriving at a figure that the commission uses” and also provides as background during its consultations, Hall says.
In requesting that the current chicken cost of production formula in Ontario be released immediately, Rilett says “we know it exists so there’s no reason it can’t come out.”
And “we want to ensure any revisions to the existing formula are conducted openly. We just want to see how this is done and the public should be able to know that as well.” BF