Commission yanks vineyard's licence

Thursday, March 31, 2011

by SUSAN MANN

The Ontario Farm Products Marketing Commission has revoked the processing license of Ferndale Vineyards Inc. after it failed to pay money it owed to three growers and Grape Growers of Ontario.

The commission gave Ferndale until March 15 to pay Frank R. Kramer, Funk Farms Ltd. and J.R. Lemick for grapes it bought in 2009. The vineyard also owed money to Grape Growers of Ontario for licensing and testing fees.

Debbie Zimmerman, Grape Growers of Ontario CEO, declined to say how much the growers and the organization are owed. In the case of the growers, she says it’s not up to her to disclose that publicly while for the organization that’s not something they make public.

The growers have the right to go to small claims court to recover their money.

As for the organization, the board hasn’t decided yet what to do about the money its owed. Currently the amount is listed as a receivable on the organization’s books unless the board decides to write it off as a bad debt, she says.

The commission’s decision is sending a very strong message to processors that it’s not okay to take in product and not pay growers for it, Zimmerman says. “We’re prepared to take action.”

In a letter to Ferndale president John Shore, the commission said its license was revoked as of March 16. The commission gave Ferndale until March 15 to come up with the money after it held a hearing last November in Thorold. Shore asked for the time so he could secure refinancing.

In a March 16 letter delivered to Shore by fax and courier, the commission told him it was “unlawful for Ferndale to process Ontario grapes or late harvest juice without a license from the commission.”

The Jordan-area vineyard makes a non-alcoholic grape drink. BF