Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Tribunal gives go-ahead to Millbank dairy plant

Tuesday, February 14, 2012

by SUSAN MANN

Even though a yogurt drink common in Asia and the Middle East is already being manufactured in Ontario there’s room for another player, the Ontario Agriculture, Food and Rural Affairs Appeal Tribunal has ruled.

In a decision handed down Feb. 9, the Tribunal dismissed an appeal by the Ontario Dairy Council. The organization, representing the province’s processors, objected to the director of the provincial agriculture ministry’s food inspection branch granting Esskay Dairy Ltd. a permit to alter an existing building to set up its plant.

Narendra Kanai, who co-owns Esskay with Azad Damani, says they’re very excited to finally be setting up the plant. They’ll be installing new and used equipment in a facility in Millbank that used to house a dairy processing plant. 

They plan to use milk from cows, goats and sheep to make the ethnic yogurt drink called lassi. Kanai says they’ll be using milk from the local area around Kitchener-Waterloo and selling the product across Canada. In testimony to the Tribunal, he said 15-20 local people would be hired to work at the plant.

Tom Kane, council president, says by email there’s no further room for appeal. “The (Ontario agriculture) minister can review the decision but that is all.”

In the Tribunal’s written decision, Kane says lassi is already produced by at least three small family-owned companies in Toronto and the competition resulting from Esskay’s application may cost jobs at those companies.

In addition, Kane said there would be less milk available for existing dairy processors to manufacture cheese and butter.

Kane countered the evidence contained a letter from the director granting the permit. The director said the cow’s milk Esskay is requesting is available on demand in Ontario for any yogurt processor. Kane says that was true when the director made the decision on Aug. 18, 2011 to grant the permit but as of Nov. 1, industrial milk wasn’t supplied to yogurt processors on demand because Dairy Farmers of Ontario implemented a new allocation system for yogurt plants. Kane says because of an increasing demand for industrial milk by yogurt processors, the new allocation system was put in place to protect milk supplies for existing cheese and butter plants.

Kane didn’t think Esskay would have been able to obtain a supply of milk under the new allocation system, the written decision says.

The Tribunal found that while there may be some negative impacts on the existing facilities, the proposed plant would likely benefit producers. And even though there are other lassi products on the market in Ontario, Esskay’s drink has the potential to expand the overall lassi market by providing a “new formulation that may offer new and different flavours, textures and other sensory qualities,” the written decision says. In addition, there is some limited potential for Esskay’s lassi to displace imports.

The Tribunal also found that the negative impacts on existing processors are likely to be small because the milk Esskay is requesting is small – 400,000 litres of cow’s milk or about 0.03 per cent of the 1.3 billion litres of industrial milk processed annually.

Dairy Farmers of Ontario supported Esskay application but didn’t attend the Tribunal hearing. BF


 

Current Issue

June/July 2025

Better Farming Magazine

Farms.com Breaking News

Cattle Stress Tool May Boost Fertility

Friday, June 27, 2025

Kansas State University researchers have developed a cool tool that may help reduce cattle stress and improve artificial insemination (AI) results. The idea came from animal science experts Nicholas Wege Dias and Sandy Johnson, who observed that cattle accustomed to their environment... Read this article online

Ontario pasture lands get $5M boost

Friday, June 27, 2025

The governments of Canada and Ontario are investing up to $5 million to strengthen shared community grazing pastures. This funding supports the province’s plan to protect Ontario’s agriculture sector and help cattle farmers improve pasture quality, ensuring long-term sustainability and... Read this article online

Health Canada sets rules for drone spraying

Wednesday, June 25, 2025

Health Canada has approved the use of drones, also called Remotely Piloted Aircraft Systems (RPAS), for pesticide application under the Pest Control Products Act (PCPA). Drones are considered aircraft by Transport Canada, but Health Canada treats them differently due to their unique... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top