The Rural Voice, 2006-02, Page 37for that purpose by CFO.
" ... Ontario Producers are
permitted to enter into contracts to
sell chickens to out -of -province
processors. Producers marketing
chicken in interprovincial or
export trade must also meet the
terms of CFO's interprovincial
and export regulation ...
" ... CFO is obliged to ensure that
its producers do not collectively
exceed their quotas so that Ontario
chicken is not marketed in excess
of the provincial allocation ..."
The respondent chicken farmers
contested CFO's request for an
injunction to restrain their chicken
exports on the basis that CFO and the
national marketing board were
conducting a "domestic cartel" which
they were attempting to expand
beyond the Canadian market, their
regulatory powers and contrary to
Canada's NAFTA trade obligations
which prevent the imposition of
restrictions on the export of goods
destined for the United States. The
court did not agree and concluded:
"The case before us is not as the
respondents submit, a matter of
CFO seeking to extend its "cartel"
to chicken farmers who produce
for the international trade; rather it
is the respondents seeking to
evade a constitutionally -valid
scheme which provides for
limiting the total production of
chicken with Ontario, without
regard to the intentions of
individual farmers as to where it
will be sold, in order to create an
orderly market in the product ...
the constitutionally -valid
imposition of controls upon the
Deadline for the
March 2006 issue
of
The Rural Voice
is February 15, 2006
Agrilaw
production of a product, without
reference to where it might be
sold, seems unlikely to meet the
test of restriction upon the export
of goods".
With respect to the public interest
at issue, the court considered the
harm to the regulatory system if
individuals are able to knowingly and
deliberately ignore it. The court held:
"Such harm is irreparable as no
one can measure in dollars the
impact of continued defiance of
the law. In the present case, no
evidence was provided to show
that there was any public interest
to be served by not applying the
scheme to the activities of the
respondents. Only their private
interests are so served. (CFO) has
shown that it, as guardian of the
public interest in maintaining the
integrity of the scheme which it
(administers), will suffer
irreparable harm if the injunction
is not granted".
The courts have held that supply
management programs for regulated
farm products are constitutionally
valid and they will protect the right of
provincial marketing boards' to
control and regulate the production
and marketing of these products.
Even producers without quota whose
production is destined for export will
be subject to such regulatory
control.0
Agrilaw is a syndicated column
produced by the full service London
law firm of Cohen Highley LLP. Paul
G. Vogel, a partner in the firm,
practices in the area of commercial
litigation and environmental law.
Agrilaw is intended to provide
information to farm operators on
topics of interest and importance.
The opinions expressed are not
intended as legal advice. Before
acting on any information contained
in this column, readers should obtain
legal advice with respect to their own
particular circumstances and
geographical area.
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