Home Crop Monitoring Competition Bureau not interested in deadstock pick-up pricing investigation

Competition Bureau not interested in deadstock pick-up pricing investigation

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Canada’s Competition Bureau has turned down a request to look into issues {that a} lack of competitors has allowed the value of deadstock pickup from farms to skyrocket in components of the nation.

The Manitoba Pork Council filed a criticism earlier this 12 months, noting a ten-fold improve in costs charged by Rothsay Rendering for fallen inventory providers. The council says Rothsay knowledgeable farm prospects in Manitoba final November that it will be elevating its charges to $150 per pick-up — a big improve from $15 a couple of years in the past.

Whereas Rothsay operates its lone Western Canadian by-product rendering facility at Winnipeg, Man., the payment improve in the province was a lot increased than in Ontario the place Rothsay faces extra competitors, famous the provincial pork group.

In its response, the Bureau says Rothsay’s conduct does not fall below its jurisdiction, for the reason that worth improve did not meet the definition of an “anti-competitive act.”

“While the Bureau wants to encourage strong competition in the market, instances of price increases by a dominant firm or group of firms, by themselves, are not sufficient to engage the abuse of dominance provisions of the Competition Act. While a price increase may be a result of anti-competitive behaviour, a dominant firm or group of firms would also need to engage in a practice of anti-competitive acts for the abuse of dominance provisions of the Act to be engaged,” the Bureau says.

An anti-competitive act is outlined “by reference to its requisite anti-competitive purpose, which is an intended negative effect on a competitor that is predatory, exclusionary, or disciplinary,” the Bureau continues. “Absent specific evidence of a firm or a group of firms engaging in a practice of anti-competitive acts, the abuse of dominance provisions of the Act would not be engaged.”

The Competition Bureau’s response “is disappointing to the many Manitoba producers who have little choice but to use this service,” says the council, in an announcement issued this week.

The council says it has additionally made the provincial authorities conscious of the difficulty, and is planning to satisfy with officers to debate different choices, together with allowing and guidelines round different strategies for disposing of deadstock.

On-farm burial and composting are allowed, however there are issues about these strategies in terms of practicality and biosecurity for stopping the unfold of illness.

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