Grocer says growers sold out

By ROBERT IRWIN

Canadian Council of Grocery Distributors vice-president Max Roytenburg warns that chicken producers will soon suffer if retailers don't get their way. "Who are you guys working for?" he asked of Canadian Chicken Marketing Agency (CCMA) directors during their meeting in Ottawa last month. Roytenburg has been complaining for months that the new production allocation system adapted by the agency allows processors to manipulate supply and boost margins while producers and retailers suffer. "I don't appreciate that very much," an obviously uncomfortable CCMA chairman Lloyd Sandercock told Roytenburg. Squabbles over supply between Canada's producers, processors and retailers is nothing new for the industry. Producers hope that the new "bottom up" approach to supply, adapted by the agency in the past year, will eliminate some of the earlier criticism they've faced. In the past, marketing boards have been blamed for shorting the market, because they set quotas based on historical patterns. The new system is based on anticipated demand. Roytenburg said the requirements of his members aren't considered. "We asked for supplies [increases] of six per cent, we were given 14 per cent." Ontario CCMA director Ed Benjamins told Roytenburg the grocery industry isn't co-operating with the panels set up to deal with the issue. Roytenburg maintains his members fear revealing sensitive information about their businesses if they participate in the panel discussions. "Our guys, for competitive reasons, are not prepared to sit around a table and discuss their plans. You can respect that, surely," said an irate Roytenburg. "I've been under the false illusion of course that people were actually looking for places to have input," Benjamins said. "Quite often it was people like yourselves making the allegation that we don't have a forum for input. Now we're trying to give you a forum for input and you're saying 'I'm sorry we're not willing to participate.'" CCMA general manager Cynthia Currie challenged the accuracy of demand information which Roytenburg currently supplies to the agency. She charged that a significant percentage of the grocery industry isn't represented in his reports. Pearl Cooper, a processor from north of Montreal and a CCMA government appointee, called for understanding from Roytenburg. She explained that she and her fellow processors also had to overcome concerns about confidentiality when the new system began.

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