A review of the Saskatchewan Egg Producers will be given to the
provincial agriculture minister Clay Serby on June 7.
Serby had asked agrologist Eugene Bendig in mid-May to look into how
quotas are allocated and transferred, and whether the egg producers
board is complying with the act that regulates it.
The review came after non-quota producers Terry Motz of Glidden and
Curtis Jensen of Milden raised concerns about the board.
They cited an apparent consolidation of quota among a shrinking number
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of producers, including many currently sitting on the board. They also
questioned how quota was transferred and the length of time spent on
quota waiting lists.
Mitchell Demyen of Saskatchewan Agriculture said the pair leveled
serious allegations of systemic problems at the board, which required
further investigation by the government.
Bendig declined to comment while the review is under way, but Demyen
said the investigation included auditing 20 recent cases of quota
transfer, including those mentioned by Motz and Jensen. Demyen said
Bendig also looked at new quota allocations made during the same period.
Bendig met with Motz and Jensen, and representatives from Saskatchewan
Egg Producers and the Saskatchewan Agri-Food Council, which regulates
the egg organization.
Demyen said Bendig’s job was to determine “if there is any evidence of
noncompliance and if so, what is the nature of it.”
Demyen said the agri-food council usually deals with the egg producers
board only when the board wants to make changes, and isn’t meant to
monitor the board’s activities. An appeal process exists for producers
who don’t agree with the board’s actions, he added.
“It’s up to the people adversely affected to say this is not right and
to appeal.”
Motz disagreed, saying provincial legislation gives the council enough
power to shut the board down.
Following a meeting with Bendig on May 24, Motz said he doesn’t expect
the review to change anything.
He said he is concerned that the review was launched as a precursor to
making legislative changes that will bring it into line with what
already is common practice.
“They’re going to change the legislation to make it legal.”
He said a distinction needs to be made between business value and quota
value. The statutes indicate quota has no value and cannot be sold, but
in practice, those seeking quota look around for those retiring, strike
a deal on the business value, and then ask the board to approve the
transfer of quota.
“We say without quota there is no business value,” Motz said.
He noted the ceiling has been raised for quota producers, but held at
299 birds for non-quota producers, limiting opportunities for
additional revenues for family farms.
“The small producer and small farmer in Saskatchewan might as well pack
up their bags and move to Alberta, because you don’t have a chance in
this province.”
The final report will also look at how eggs were produced when the egg
marketing legislation was passed in 1976 and how it has changed since
then. It will review board minutes, and examine economies of scale,
farm size and competition.
Demyen said it was likely the report’s findings would be made public
because of the large amount of public interest.
