Ontario may waive chicken processor bonds if other
boards don't soon enforce the practice in their
provinces. Canadian Chicken Marketing Agency (CCMA)
Director Ed Benjamins told a recent CCMA directors
meeting in Ottawa that the bonds are tying up
processor operating capital.
The controversial processor bonding requirements
were included in the recent national chicken
marketing memorandum of understanding signed by all
provinces except Nova Scotia and Newfoundland.
Those two provinces attend Canadian Chicken
Marketing Agency meetings but can't vote.
Bonding was originally seen as a way of ensuring
processors actually take the chicken they ask
farmers to produce under the new bottom up system.
After signing the agreement, most provinces now say
they've changed their minds. Reasons vary, but
several say they don't want to spoil the trust
built up with processors by demanding a bond.
Some provinces such as Alberta now want to use a
letter of commitment instead. "This letter of
commitment is a commitment to bond if there's a
problem," Alberta Director John Kolk told the
meeting. 
Quebec representatives hint the issue could scuttle
the national chicken marketing agreement.
Currently, Quebec doesn't require bonds. The
province, however, has begun negotiations with
processors because producers are anxious to have
the safeguard if chicken prices drop.-RI

   

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