Police investigate Grey County based beef marketing scheme

Friday, February 6, 2009

© AgMedia Inc.

by BETTER FARMING STAFF

The Ontario Provincial Police are investigating a business linked to a beef marketing scheme that was promising producers as much as $2,000 for a steer that would fetch less than $1,400 in regular markets.

On Wednesday, Const. Steven Starr with the Grey County OPP confirmed a member of the detachment’s crime unit is investigating All County Feed & Grain Ltd. and its operators Darryl Williams and Mark Kuglin but said he could not release any other details.

Neither Williams nor Kuglin could be reached for comment.

Established in 2006 by Williams and Kuglin, All County sold cattle and horse feeds and supplements. In April 2008, Williams and Kuglin launched Grey-Bruce Beef Marketing Ltd. The venture offered big prices for cattle raised on “an all-natural diet,” free of antibiotics and growth hormones. They planned to sell locally produced beef to Ontario restaurants, stores and food services.

James McKinlay said he was among more than 20 producers who attended a meeting in Markdale in May to promote the venture to producers. “At that point they were targeting 10 head per week and of course it was a fairly attractive and I think the phone probably rang off the hook for them,” says the Ravenna area producer. 

In a Jan. 7 interview, Kuglin said the venture ran into trouble in the summer of 2008 when customers receiving a big shipment of meat sent to festivals in Ottawa refused to pay for it in full. Some of the meat was subsequently condemned because of labelling, he said.

On Sept. 22 the business’ provincial cattle dealing license, issued June 16, 2008, was revoked because All County failed to pay producers.

Kuglin said he was a minority shareholder in the limited company and was forced out in December. Documents filed Dec.12, 2006, when the company was incorporated, show Williams as president, secretary and treasurer.

In January All County closed the doors of its Markdale area location.

McKinlay said he’s owed payment for 14 head of cattle. “Fortunately we’re not into it in huge numbers but it’s still significant.”

Brian Tulloch, a Meaford area beef producer who supplied cattle to the venture since its launch, said he’s owed $30,000.

Doug and Lois McComb and their son Dan, who farm near Chatsworth, lost more than $100,000.

McKinlay thought he was protected by the Ontario Beef Cattle Financial Protection Program but found out he didn’t qualify because he had agreed to terms of payment not allowed under the program.

Administered by the Ontario Ministry of Agriculture, Food and Rural Affairs, the program licenses cattle dealers and maintains a financial protection fund that compensates producers when a licensed dealer defaults on payment. To qualify for coverage, producers must obtain payment within two days of sale or within two days of grading a carcass and not to extend credit to a dealer. Otherwise a claim to the financial protection fund may be refused.

Ministry spokesperson Susan Murray said she could not comment on whether OMAFRA’s regulatory compliance unit is considering an investigation into All County. “There are claims being made and different things going on; we just can’t comment on what might be happening – on specifics.” BF