SASKATCHEWAN CHALLENGES CANADIAN EGG MARKETING AGENCY QUOTA ALLOCATIONS

The Province of Saskatchewan and industry representatives have applied for a judicial review of the quota allocations for egg production as set by the Canadian Egg Marketing Agency (CEMA) for the period of August 1st to December 31st, 2004.

Parties to the August 30th, 2004 application include the Saskatchewan Agri-food Council (SAFC), Saskatchewan Egg Producers (SEP) and several producers. It calls on the court to direct CEMA to make quota allocations based on criteria specified in the Federal-Provincial Agreement (FPA) for eggs.

The term "quota allocation" refers to the maximum number of eggs that can be produced and marketed by producers. If CEMA's allocations to the province do not reflect capacity and/or comparative advantage, the growth of Saskatchewan's industry is artificially limited.

"The FPA on eggs must be honoured in order to protect Saskatchewan's egg producers," Agriculture and Food Minister Mark Wartman said. "If CEMA's recent quota allocation is allowed to stand, Saskatchewan's opportunity for growth in this important industry would be jeopardized. We call on CEMA to uphold the FPA contract."

When the egg FPA was first signed, the Saskatchewan grain industry took advantage of federal grain transportation programs to support livestock production outside of the province. When those programs ended and transportation costs dramatically increased, new markets for feed producers developed inside of the province. Saskatchewan contends that the FPA was intended to ensure quota allocation on the basis of comparative advantage, and since the province's egg industry has an advantage based on access to locally grown feed, quota allocation should reflect that.

The province further contends that the criteria for quota allocation that have been used by CEMA are not specified in the egg FPA and are therefore inappropriate.

The filing follows four years of failed meetings between SEP and CEMA, and a spring 2004 complaint to the National Farm Products Council (NFPC), the federal body that oversees CEMA. In its May 2004 report, the NFPC Complaint Committee recommended that CEMA and SEP meet "on an urgent basis" to seek resolution. To date, no resolution has been reached.

-30-

For More Information, Contact:

Roy White Agriculture, Food and Rural Revitalization Regina Phone: (306)787-5952

Michael Katz Saskatchewan Egg Producers Regina Phone: (306)924-1505