TORONTO — It looks as though consumers of kosher chickens will have to wait a bit longer for a made-in-Ontario option.
Chicken Farmers of Ontario (CFO), the agency that administers the provincial chicken quota under authority of the Ministry of Agriculture, has re-opened the application process to new bids.
“There is still an opportunity for someone to apply with a complete business proposal to serve the kosher chicken market in Ontario,” said Michael Edmonds, director of communications and government relations for CFO.
“Even though there have been some developing proposals, those proposals have changed radically over time, and to this point, none have submitted a complete proposal.”
Edmonds was referring to a number of applicants for a quota to produce kosher chickens in Ontario. Though he would not say how many groups have applied, he acknowledged that originally it was more than three or four. Given the “complex” kosher chicken market in Ontario, none of the entities that placed a bid has satisfied CFO criteria, he said.
CFO has retained the consulting firm of Deloitte to assist in evaluating the business plans presented in the bids. The ultimate decision in choosing a successful applicant – which can include groups that have been turned down in the past – will be made by the CFO board, Edmonds said.
“We have been holding the opportunity available to the market for some time. As soon as we are able to find a reasonable partner with a reasonable proposal, vetted by our third party consultant, we’d be ready to go to the market,” he added.
CFO first solicited bids for kosher chicken production in early 2014, setting a deadline of May 30 for applications. Edmonds said at the time he expected consumers could expect to enjoy Ontario-produced kosher chickens by the end of the year.
He also acknowledged last year that kosher chicken consumers in Ontario wanted more options available to them. Prior to May 2013, the market had been served by two chicken producers, Chai Kosher Poultry, a Toronto company, and Marvid Poultry, a Montreal-based firm.
However, in May 2013, Chai sold its quota to a halal producer, leaving Marvid with a virtual monopoly on the Ontario market. Marvid stepped up supply of kosher birds for Ontario, but not all kosher consumers were satisfied.
“The community very clearly told us they’re looking for Ontario kosher chickens,” Edmonds said last year, in announcing creation of a new kosher chicken quota. “We’ve received numerous calls from consumers and retailers that there was not enough high quality processed kosher chicken in Ontario.”
Edmonds declined to provide a number for the quota, saying prospective producers are expected to suggest a figure, based on their knowledge of the market and production capacity.
The CFO website sets out a number of criteria expected of a successful kosher processor. They include “leadership, vision and drive committed to delivering a successful outcome of kosher supply”; “financial strength to fund a significant capital project and to fund working capital of a startup operation”; “financial management capabilities”; “access to an existing food processing plant facility or track record in managing a project to construct one”; “operations management capabilities… procurement expertise… sales and marketing experience/capabilities…understanding and engagement with the Jewish community and distribution channels.”
In addition, the CFO requires “kosher certification and supervision by a major recognized North American kosher certification agency.”
The CJN has learned that at least one of the rejected bids included supervision by a senior Toronto rabbi. Did the supervision requirement of “a major… certification agency” eliminate that bid from contention, Edmonds was asked.
“That line was for guidance only and is not intended to put any restrictions on the proposals. We are open to any business proposal that can meet the kosher consumer markets outlined in the business plan,” he replied.
