According to a press release from Westco-Olymel Partnership, the ministerial order made pursuant to Bill 81 is clearly illegal, since, by forcing New Brunswick producers to process their chickens at Nadeau Maple Lodge, Agriculture Minister Ouellette is seeking to prevent interprovincial trade, which is a matter within the jurisdiction of the federal government. Westco is thus of the opinion that it can in no way be obliged to comply with the order, and considers that the decision by the New Brunswick government is invalid and unconstitutional.

Westco President and CEO, Thomas Soucy, said: "We obtained a decision from the Competition Bureau and another from the New Brunswick Court of Appeal in 2009 that recognized our right to sell our chickens however we wished, and to engage in interprovincial trade. It is unfortunate and regrettable to note that the government nevertheless persists in trying to prevent us from doing so."

On 8 June 2009, the Competition Bureau recognised that Westco had the right to sell its chickens to the buyer of its choice, and was under no obligation to supply Nadeau Maple Lodge. In addition, in another judgment handed down on 20 August 2009, the New Brunswick Court of Appeal confirmed a decision by the New Brunswick Farm Products Commission to the effect that neither Westco nor any other producer was required to transfer any part of its production to Nadeau Maple Lodge, reiterating the principle that a poultry producer is free to sell to whomever it chooses.

According to Minister Ouellette, the ministerial order is designed to protect jobs in the Saint-François region, but it is based on an inflated number of job losses. Since the layoffs announced by Nadeau Maple Lodge last fall, several dozen employees have been recalled. Westco even supplied detailed figures, though they unfortunately seem to have been ignored by the government.

Even though it is analysing all available options, Westco nevertheless confirms that in the coming days it will submit a business proposal to Nadeau Maple Lodge and the government which, consistent with the ministerial order, seeks to keep poultry processing temporarily in New Brunswick at Nadeau Maple Lodge. In addition, discussions between Westco, Sunnymel (the partnership between Westco and Olymel) and Nadeau Maple Lodge will be necessary, since the ministerial order is silent on several important points.

On a number of occasions since the summer of 2009, Westco and Sunnymel have attempted to reach an agreement with Nadeau Maple Lodge, and even accepted an offer from the government for mediation. However, Nadeau Maple Lodge rejected all the proposals that would have enabled it to continue processing Westco chickens.

Mr Soucy added: "While we deplore this new step by the government in response to pressure from Nadeau Maple Lodge, which unfairly penalises Westco and Sunnymel, we are more determined than ever to go ahead with construction of our slaughterhouse at Clair, where a number of steps have already been completed in the last few months as the construction work moves ahead. The workers, the Maritime poultry industry and consumers will all benefit greatly from this major investment and from the consolidation of our industry."

Groupe Westco inc. is a New Brunswick company with its head office in Saint-François-de-Madawaska. The result of a common vision for expansion by many poultry producers, the company has become a model of success and profitability. Westco owns its own hatcheries, breeding farms and shipping companies, and is also one of the largest poultry production organizations in Canada.

Olymel l.p. is a leader in the slaughtering, processing and distribution of pork and poultry meat products in Canada, with facilities in Québec, Ontario and Alberta. The company employs more than 10,000 persons and exports nearly half its production, mainly to the United States, Japan and Australia, as well as some sixty other countries. Its sales stood at over C$2 billion this year, with a slaughtering and processing capacity of 160,000 hogs and 1.7 million birds every week. The company markets its products mainly under the Olymel, Lafleur and Flamingo brands.

Further Reading

-

Go to our previous news item on this story by clicking here.