Chobani Yogourt of New York has fended off a court challenge
by major competitors who tried to overturn an import-tariff break the Canadian
government granted the company.
Instead of the usual tariff of 240 per cent, the government
is allowing Chobani yogourt to enter Canada at a tariff rate of five per cent
while it tests the market for its Greek-style yogourt.
Competitors Ultima Foods and Danone Inc. argued that the
tariff break isn’t fair because they are making Greek-style yogourt, so Chobani
is not offering a unique product that deserves the break.
The same major competitors were set to challenge Chobani’s
plans to build a $74-million plant near Kingston, Ontario, Canada, to begin
making the Greek-style yogourt for the Canada-wide market.
They have, however, withdrawn that challenge. The Dairy Farmers
of Ontario marketing board says it’s ready and able to provide the milk that
Chobani will require at its new plant.
Chobani’s sales to Canada have been going mainly to about 60
supermarkets in Ontario that are owned by Loblaws.
It's ironic that the farmers' customers who were so adamantly opposed to supply management when it was first implemented across Canada are now just as intent as farmers - and in many cases moreso - in retaining supply management.
What was intended to benefit farmers has come to benefit mainly large food-processing corporations.
