The Chicken Mafia Exposed

Yesterday's Blog posting was about CFO being ordered to correct the unfair live chicken prices they had previously been charging in Ontario due to an inflated FCR (Feed Conversion Ratios) factor.  The FCR was supposed to reimburse the factory chicken farmers for chicken feed that they had to buy.  What really happened is that the bogus FCR paid for all the chicken feed purchased, plus a 16.28% premium.

However, CFO allowed both an inflated FCR and inflated $/tonne chicken feed prices to be used in this "fair and reasonable" formula.

Garbage in gets you garbage out.

I previously Blogged how the bogus FCR extracted $945 million per year from Canadian wallets.  However that calculation was based on the proper FCR being 1.82 so now that 1.72 has been admitted, the total bill for the FCR scam is adjusted to $999.942 million.  Between friends, can we call it an even $1.0 Billion per year?

Since this bogus data has been used at least since 2003, that's 10 years of deceit, so we have a total scam of $10 Billion over that 10 year period of time.

I think that both OFPMC and CFO knew, or ought to have known, that the previous FCR of 2.0 was false, substantially inflated, a mis-representation, and deceptive.

I also suggest that CFO acted contrary to the Federal-Provincial Agreement on Chicken, 2001 which they signed, where Section 1.01 (d) states that CFO and OFPMC (and all other signatories) are:

1.01
...
(d) to work in the balanced interest of producers, industry stakeholders and consumers.

With the Chicken Mafia on the loose, it's no wonder that a 2010 Health Canada survey finds that 7.65% of the Canadian population (ie. 2.56 million people) can't afford the food they need to feed their families (ie. they're food insecure).  In Nunavut, it's 28.8% of the population.  In addition, food bank usage is up 40% in the last 5 years, and Canadians are charged 3 times more for chicken than our American neighbours to the South.

The Chicken Mafia become millionaires while millions of Canadians are improperly nourished.  People are forced to eat inexpensive, less nutritious foods as they cannot afford the foods they need to optimize their health.

Will CFO and the Chicken Mafia be required to disgorge these unfair extortion proceeds back to their victims, the Canadian public?

Under CFO's Quota Policy, factory chicken producers can self-market chicken directly to end-consumers. Did any of the Chicken Mafia actually take advantage of this opportunity?  If they did, perhaps they can be held accountable for their actions.

The live chicken price formula was widely publicized by CFO and many others as providing just enough income to the factory chicken farmers so they can earn a fair and reasonable living.

For example, Chicken Farmers of Ontario said (emphasis added by me):

"In light of the global economic crisis, the timing of Chicken Day gave us an opportunity to show our appreciation for support of supply management and reinforce strength of a system that provides consumers with premium quality Ontario chicken at consistent prices while providing farmers with a fair return on their investment."

For example, Chicken Farmers of Canada said:

"By acting together, farmers negotiate a fair price for their products based on what it costs to produce them."

and

"Farmers get a fair return for their products,..."

Ontario's Consumer Protection Act applies to most purchases of goods for personal use by an individual.  Buying chicken for personal consumption from a quota-bearing chicken factory would fall under this Act.  Under Part III of this Act, it prohibits unfair practices such as false, misleading, or deceptive practices.  Section 14.(2).16 of the Act states that a false, misleading, or deceptive representation includes:

16. A representation that misrepresents the purpose of any charge or proposed charge.

With 2700 members in the Canada-wide Chicken Mafia, and a refund of $10 Billion owed (plus interest, of course), that would be an average refund of $3.7 million per factory chicken producer.  Perhaps they can sell their chicken quota and turn over all of the proceeds to the public, wiping the slate clean.

Who would buy the chicken quota?  Nobody I know would touch it with a 10 ft. barge pole.  With the high cost of quota, the ROI (Return on Investment) was previously shown to be less than 3% The Chicken Mafia have certainly backed themselves into a corner.  They will have to sell everything to pay their debt to society.

I suggest the reasonable settlement terms as follows:  All Chicken Mafia Members will be required to sign an admission of guilt, make a written apology to all Canadians, and pay $3.7 million from each member of the Chicken Mafia.

For CFO, we need to be much harsher, for it was CFO who was the controlling mind; the Mafia Don who lead the Chicken Mafia in the raping of Canadians.  The only punishment that fits CFO's crime is capital punishment.  The Crown Attorney must seek the death penalty for CFO.  If and when convicted, CFO will face corporate execution, be wound up, and cease to exist.

Perhaps this accounting explains how chicken quota came to be valued so high in the Canadian free market.  It was all just the accumulation of ill-gotten gains.

Are there any lawyers out there interested in a juicy class action lawsuit?  If there is, perhaps there are many people ready to help the cause of calling the Chicken Mafia to fully account for their actions.