The “Spilled Milk” gang is at it again! Some of the same old partnership from the December MacLeans article. This time, the focus is designed to freak out the Canadian government and the Canadian position at the WTO.
The current flavour of the month is an American Lawyer for Mr. Birch, Mr. Todd Weiler. He obviously doesn't understand the Canadian dairy system and probably doesn’t care. It looks as if, after continuously losing their case in court, they are now taking their view of life to selected media. Of course the media chosen is ROB TV(Report on Business http://www.robtv.com ) Their business reporting, as far as the dairy industry is concerned , is not known for its balance.
This time around it was a one sided view of the Birch case (Squeeze Play-March 2,2006). It is an expanded 20 minuet version of the news report below, all produced without any comment provided from the province of Ontario (who is fighting the current case) or Dairy Farmers of Ontario.
Georgian Bay Milk, U.S. investors plan NAFTA suit vs. Canadian government
Canada Press
Wednesday, March 01, 2006
BARRIE, Ont. (CP) - Georgian Bay Milk Co. and its U.S. investors are threatening to sue the Canadian government over Ontario's dairy quota system.
The claim will be filed under the North American Free Trade Agreement, the Barrie-based company said Wednesday. Georgian Bay Milk sells milk directly to the United States and to Canadian processors who use it to make cheese and other dairy products that are exported to the United States.
The firm said in a release that its business "has been consistently under attack by the Dairy Farmers of Ontario, a producer group that is broadly empowered by the Ontario government to set rules for (who) is allowed to buy and sell milk and milk products in Ontario."
The DFO maintains a supply management system that requires anyone wishing to produce milk for consumption in Ontario to obtain a quota, now selling for more than $25,000 a cow.
Georgian Bay and the farmers who supply it don't take part in DFO's quota system and has exclusively used non-quota milk for its export business.
"With the blessing of the Ontario government, the DFO is now attempting to force Georgian Bay to abandon its existing suppliers and only use milk from quota-holding DFO members," the company said.
Georgian Bay says it can't comply with the DFO rules because exports of DFO quota milk to the United States were ruled illegal in late 2002 by the World Trade Organization.
Todd Weiler, Georgian Bay's NAFTA lawyer, said the Ontario government "has bowed to pressure from the DFO and taken steps to destroy Georgian Bay's business - costing my clients their livelihoods.
"Under the NAFTA, the government of Canada is responsible for all of the actions of its provinces. It will be the one to write the cheque."
© The Canadian Press 2006
A bit of sleuthing finds out who is listed as the NAFTA challengers. (See http://www.naftaclaims.com ) The challengers are listed as GL Farms LLC and Carl Adams. Hmmmmm!??! GL Farms LLC does not appear to be a processor. There is no information out there on the internet about them at all.
A brief look on the internet under LLC, finds out some fascinating information. You can purchase your LLC in Delaware, for instance, for about $1000.00. Not only that, under Delaware law, shareholders can remain anonymous. Foreign companies are welcome!
It doesn’t stretch my imagination much, to speculate that there may not even be any US investors, but a shell company set up by Mr. Birch and his co-horts, to hide who is doing what and to then launch their Chapter 11 challenge from the safety of a Delaware shell company.
Dairy Farmers of Ontario is an Ontario non-profit corporation set up and run by the dairy farmers of that province. Chapter 11 is an American procedure. Chapter 11 is a process Canada has no control over. We have historically lost all of these, as they tend to support American companies. How convenient to have an American LLC , that any foreign company can purchase, to initiate an expensive challenge against the government of Ontario and the dairy farmers of the province.
Add to this mix, the ROB Reporter believes and states, without any proof, consumers in Canada pay more for their dairy products than their American counterparts. There is ample documented proof at the DFC website( http://www.dairygoodness.ca/en/Media/home.htm ) that this is NOT true. This same old lie is trotted out, time and time again, the only reason detractors can think up to support their bid to destroy Supply management.
In Canada, there is no requirement or mechanism for the retailer to pass on ANY decreased prices, to the consumer. And there is overwhelming historical data that shows no matter what is happening to on farm prices, consumers never see the benefits. (See Feb. 20th posting)
A bunch of right wing reporters and an American lawyer!!!! Just what Canadian dairy farmers need! Total objectivity!!
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