Specialty market chicken fight heads to Tribunal

Thursday, January 2, 2014

by SUSAN MANN

The Ontario chicken industry should implement the specialty market policy rather than taking the matter to a hearing before the Ontario Agriculture, Food and Rural Affairs Appeal Tribunal, says an industry spokesman.

John Slot, general manager for the Ontario Independent Poultry Processors, says the Ontario government and particularly Agriculture Minister Kathleen Wynne (who is also the Premier) should show some true leadership to help resolve the matter. The independent poultry processors group was formed in 1999 to represent the smaller independent processors servicing niche markets, such as organic or kosher.

It’s the Association of Ontario Chicken Processors, which represents large processors, that is challenging the Chicken Farmers of Ontario policy.

Earlier, Mike Terpstra, executive director of the chicken processors association, refused to comment on the appeal.

Slot says in the past other Ontario agriculture ministers, such Steve Peters who served from 2003 to 2005, have called chicken industry players in and told them to straighten out their problems. Slot says instead of allowing this matter to go before the Tribunal, which “is a huge cost to our membership,” Wynne should step in “and give some clear direction” to the Ontario industry.

Mark Cripps, agriculture ministry spokesperson, says by email the matter Slot is referring to with Peters was resolved before it reached the Tribunal and that’s different than the current situation involving a hearing about the specialty market policy. He also says the agriculture minister may only intervene in a matter before the Tribunal once it releases its decision. The minister has 30 days to confirm, rescind or send back for reconsideration a decision of the Tribunal. The minister may also extend that review period.

Slot says the Tribunal granted party status to his organization for the upcoming hearing scheduled for Jan. 22 and 24.

Party status means the independent poultry processors group is a full participant in the hearing and can make presentations, supply documents and cross-examine witnesses, he says. They wanted to be part of the hearing because they helped develop the specialty market policy for Ontario.

Implemented earlier in 2013, the policy has been held up because of the challenge by the association of Ontario chicken processors. “The fact that this policy has been continuously delayed has created a lot of hardship for our members,” Slot notes.

The main question centres on where the additional kilograms of chicken for specialty products should come from. Slot says the association of Ontario chicken processors and the provincial board want them to come from Chicken Farmers of Canada’s national allocation. But Chicken Farmers of Canada policy doesn’t recognize different processing methods as Ontario does in its policy, just different chicken breeds for a company to qualify to get additional kilograms of chicken under the specialty chicken policy.


“We have said all along there’s enough kilograms in the Ontario allocation to supply the specialty market needs,” Slot says. But the association of Ontario chicken processors and Chicken Farmers have said there isn’t and “therefore they need to have additional kilograms” from Chicken Farmers of Canada.

Slot estimates in Ontario there is a specialty chicken market demand for one million to 1.5 million kilograms per quota period. There are 6.5 quota periods in a year.

The Ontario policy recognizes processing as potentially being “special,” Slot says, noting that would include Kosher along with processing chickens in the Hong Kong style, which are chickens with the head and feet still attached to the body.

The provincial policy “would definitely work for Ontario and would solve a lot of the problems with the specialty markets,” Slot says, noting it would also “allow smaller processors an opportunity to grow and to serve that market for the Ontario consumer.”

Slot says Chicken Farmers of Ontario encouraged processors to submit applications last spring for additional kilograms of chicken under the new policy. Many of the independent poultry processors association members prepared applications after talking to their potential customers about what their needs were. But the processors have lost credibility with their customers due to the delay in the policy’s implementation.

The policy is designed to meet the evolving consumer-driven markets for Ontario-grown chicken products. According to the Chicken Farmers’ website, specialty chicken is defined as any distinct chicken product, including unique growing or processing methods, that is sold exclusively to a distinct marketplace. The policy is designed to build the overall market for chicken without cannibalizing conventional chicken markets. BF