Thursday, April 25, 2013

Now the egg board will consult members

Hours after my most recent post about egg board general manager Harry Pelissero pushing for a quota exchange, chairman Scott Graham sent out an e-mail saying that now the board is willing to consult members about the proposal.

If my blog prompted that response, it was certainly fast. I honestly hope it was simply Graham realizing that this is a policy that needs consultation before it's rushed into place.

There Dairy Farmers of Ontario marketing board was the first to implement a quota exchange.

And then, when there were too many complaints about high and rising quota prices, the board had the perfect tool in its control to cap prices. And now hardly any milk quota trades in Ontario, absolutely stifling improvements in efficiency and family plans to expand to bring children into the business.

Not only did the milk board set a price cap on quota trading over the exchange, it also banned whole-farm purchases to achieve mergers.

If the egg board implements an exchange, I predict the next step will be price controls.

Don't go there!