15069923990 GROUPE WESTCO TRIBUNAL DE LA CONCURRENCE EN MATIERE DE la Loi sur la concurrence, L.R.C. 1985, ch. C-34 et ses modifications, et des Reg/es du Tribunal de la concurrence, DORS/94-290;
ET EN MATIERE D'UNE demande en vcrtu de \'article 8 de la Loi sur la concurrence par Nadeau Fennc Avicole Limitee relative a une ordonnance rendue en vertu de !'article 104 de la Loi sur la concurrence conceniant une allegation de refu s de vcndre de la part de Groupe Westco Inc. et al.
ENTRE: NADEAU FERME A VICOLE LIMlTtE Dcmanderessc ET GROUPE WESTCO INC ET GROUPE DYNA CO, COOPERATIVE AGROALIMENTAIRE ET VOLAILLES ACADIA S.E.C. ET VOLAILLES ACADIA INC.
Defend!!resscs
AFFIDAVIT DE THOMAS SOUCY Souscrit le 15 decembre 2008
Me Denis Gascon Me Eric C. Lefebvre
Ogilvy Renault, S.E.N.C.R.L., s.r.I. Bureau 1100 1981 , rue McGill College Montreal (Quebec) H3A 3Cl Tel.: (514) 847-4747 Fax: (514) 286-5474
Procurcurs de la defenderesse Groupe Westco Inc.
DOC~MTL: 3088932\3
06:03:00PM 12- 15-2008 2 /13 Nwnero de dossier: CT-2008-004 Numero du document du Greffe : - ---
Me Martha A. Healey Me Geoffrey Conrad Me Alexandre Bourbonnais
15069923990 GROUPE WESTCO 06:03:27PM 12-15-2008 3 / 13 A : Registraire Tribunal de la concurrence L'edifice T homas D'A rey McGee Bureau 600 90, rue Sparks Ottawa (Ontario) KIP 5B4 Tel. : (613) 954-0857 Fax: (613) 952-1123
Mme Leah Price Mme Andrea McRae Fogler, Rubinof LLP #1200-95, rue Wellington Est
Toronto (Ontario) MS I 2Z9 Procureurs de la dcmandercssc Nadeau Ferme Avicole Limitee Tel.: (416) 365-3716 fax : (416) 941-8852
Me Olivier Tousignant .Joli-Coeur, Lacasse, Geoffrion, Jette, St-Pierre
Bureau 600 1134, Grande Allee Ouest Quebec (Quebec) GlS l c5 Procureurs de la dcfenderesse Groupe Dynaco, Cooperative alimcntaire Tel. : ( 418) 681 -7007 Fax: (418) 681-7100
Me Valerie Belle-Isle Lavery, De Billy s.c.n.c.r.l. Bureau 500 925 Grande-Allee Ouest Quebec (Quebec) GlS !Cl Procureurs des defenderesses VolaiUes Acadia S.E.C. et Volailles Acadia Inc. Tel.: (418) 266-3068 Fax: (418) 688-3458
15069923990 GROUPE WESTCO Je, soussigne, THOMAS Soucv, president et CEO de Groupe Westco Inc., exer~ant mes fonctions au 9, rue Westco, ville de St-Fram;ois, province du Nouveau-Brunswick, affirme solcnnellement ce qui suit :
I. J'occupe le poste de president et CEO de la defenderessc, Groupe Westco Inc. (« Westco ») , depuis le 15 aout 2002. Avant cette date, j'o ccupais dcpuis 1996 le poste de CEO de Distributions Westco ct de Couvoirs Westco, filiales de Westco;
2. J'ai pris connaissance du contenu de l'affidavit de M. Yves Landry date du 4 novcmbre 2008, lequcl a ete depose au soutien de la demandc formulee par la demanderesse, Nadeau Fermc Avicole Limitcc {«Nadeau»), en vcrtu de !'article 8 de la Loi sur la concurrence(« Affidavit Landry»);
3. Je souscris le present affidavit aftn de corriger les inexactitudes que comporte !' Affidavit Landry et dans le but de mettrc en preuve Jes faits demonlrant que Westco s'cst en tout point conformee a l'Ordonnance intcrimaire renduc par ce Tribunal le 26 juin 2008 en
vertu de !'article 104 de la Loi sur la concurrence ( « Ordonnance ioterimairc ») ;
4. J'ai unc connaissance personnelle de tous !cs faits souscrits dans cet affidavit; A. TAILLE DES POULETS 5. Les faits relatifs a la decision prise par Westco en 2005 de changer la genetique de scs poulets (et consequemment la taille de ceux-ci) sont enonces a la corrcspondance
transmise par !es procureurs de Wcstco aux procureurs de Nadeau le Jer aout 2008, laquelle est communiquec au soutien des presentcs a la piece « A »;
B. QUANTITE DE POULETS LlvREE A NADEAU 6. Les faits relatifs a la quantite de poulcts que Westco a livree a Nadeau entre la date de l'Ordonnance interimaire et la fin de la periode A-86 sont enonces a la correspondance
transmise par les procureurs de Westco aux procureurs de Nadeau le 29 octobre 2008, laquelle est communiquees au soutien des presentes a la piece « B »;
06:03: 52 PM 12- 15- 2008 4 113
15069923990 GROUPE WESTCO 06:04:28 PM 12- 15- 2008 5 / 13 - 2 -7. Tel qu'il appert a la piece « B », pendant la periode A-86, soit du 20 juillet au 13 septembre 2008, Wcstco a livre a Nadeau une moyenne de 341 295 kg de poulets par semaine. Cette quantite de poulets equivaut a 170 648 poulets par semaine en utilisant
l'hypothese que chaque poulet pese en moyenne 2 kg. Or, pendant la periode A-86, Wcstco a livre a Nadeau plus de poulets vivants que ce qui etait exige par l 'Ordonnancc
interimaire, soit environ 9 418 poulets par semaine en surplus (170 648 - 161 230) ou 75 344 poulets pour cette periodc. Notons qu'en soustrayant de sa production de 186 230 poulets par semaine, les 25 000 poulets que Nadeau re~oit hcbdomadairemcnt d'autres sources, ont obtient un total de 161 230 par semaine;
8. Quant aux faits pertinents a la quantitc de poulets livres par Westco a Nadeau pendant la perioc,!e A-87, ils sont !es suivants :
a) En vertu de la reglementation provinciale en vigueur au Nouveau-Brunswick, le respect des contingents de production est cvalue sur la base de deux pcriodcs;
b) i\insi, la periode A-86 est jumelee a la periode A-87, tel qu'i l appcrt des lcttres des Eleveurs de poulets du Nouveau-Brunswick communiquees au soutien des presentes a la piece « c )) ainsi que de l'extrait du conlre-interrogatoire du Dr. Barichello du 20 novembre 2008 communique au soutien des presentes a Ja
piece « D »;
c) Westco a surproduit pendant la periode A-86, cc qui signifie qu'elle a du sous-produire pendant la periode A-87 afin de respecter la rcglemcntation provinciale;
d) Du 14 septembre 2008 au 8 novcmbrc 2008 (periode A-87), Wcstco a livre a Nadeau un total de 2 244 827 kilogrammes de poulets, soit environ l 122 413 poulets pour la periodc, ou 140 301 poulets par semaine (en utilisant l'hypothese quc chaquc poulet pese en moyenne 2 kg);
c) Or, !'obligation de livraison de Westco en vertu de l 'Ordonnance interimaire au cours de la periodc A-87 etait de 140 454 poulets par scmaine (en utilisant l'hypothese que chaque poulet pese en moyenne 2 kg);
15069923990 GROUPE WESTCO 06:05:05 PM 12- 15- 2008 6 /13 - 3-f) En effet, tel que plus amplement explique a la piece « B » et tel qu' en font foi Jes pieces« C »et« D », depuis le moment ou l'Ordonnance interimaire a ete rendue (au cours de la periode A-85), les contingents de production de Westco ont ete reduits d\m total de 3,26% pour la periode A-86 et de 4,53% pour la periode A-87, pour un total de 7,8% par rapport a la periode A-85;
g) L'Ordonnance interimaire exigeait que Westco fournisse un total de 186 230 poulets par semaine, moins les 31 250 poulets obtenus par Nadeau auprcs de sources de rcmplacement, soit 154 980.
h) Une diminution de 7,8% des contingents de productions de Westco pour la periode A-87 signifie qu'au lieu de pouvoir produire en moyenne 186 230 poulets par semaine, Westco pourra seulement en produire 171 704 (7,8% de 186 230 equivaut a 14 526 poulets de moins);
i) En soustrayant de ce maximum de production (171 704 poulets par semaine) !es J 1 250 poulets que Nadeau re~oit hebdomadairement d 'autres sources, on obtient un total de 140 454 poulets par semaine, ce qui represente !'obligation hcbdomadaire de Westco au cours de la pcriode /\-87;
j) Cela signifie que, puisque Nadeau a obtenu un total de 140 301 poulets par semaine pendant la periode A-87 (en utilisant l'hypothese que chaque poulet pese en moyenne 2 kg), Nadeau a subi un deficit maximal de 153 poulets par semaine (ou l 224 poulets pour la periode);
k) Ce deficit minime est largement compense par le surplus obtenu par Nadeau au cours de la periode A-86, soit 9 418 poulets par semaine ou 75 344 poulets pour la periode;
15069923990 GROUPE WESTCO - 4 -I) Le tableau suivant cxprime les donnees pertincntes pour la periode A-87: DATE DE rt.TES Pi:RJODE SEMAJNE DEBUT LIVR EES A-87 I Sept. 14 2008 116 838 2 Sept. 21 2008 142 740 3 Se2t. 28 2008 116 260 4 Oct. 5 2008 199 830 5 Oct. 12 2008 105 870 6 Oct. 19 2008 163 934 7 Oct. 26 2008 107 960 --8 Nov. 2 2008 52 890 Total (periode) I 005522 Movenne hebdomadairc 125 690 Contingent de production (poids vivant) 9. Quant aux faits pertinents a la quantite de poulcts livres par Westco a Nadeau pendant la pcriode A-88, its sont les suivants :
a) La periode A-88 a debute le 9 novembre 2008 et se terminera le 3 janvier 2009; b) Ainsi, en date d'aujourd'hui, ii n' est pas possible d'evalucr avec exactitude Jes livraisons hcbdomadaires moyennes de Westco, d'autant plus que la periode A-88 dcvra @tre equilibree avcc la periode A-89, conformement a la reglementation
provincialc en place au Nouveau-Brunswick;
c) Toutefois, je peux confirmer quc pour les quatre premieres semaines de cette periode, soit du 9 novcmbre au 7 dccembre 2008, un total de 1 108 090 kilogrammes de poulets a ete livre a Nadeau, soit environ 138 511 poulets par
semaine (en utilisant J'hypothese que chaquc poulet pesc en moyennc 2 kg);
d) Depuis le moment ou l'Ordonnance interimaire a ete rcndue (au cours de la periodc A-85), les contingents de production de Westco ont ete reduit de 12,68%;
e) Une diminution de 12,68% des contingents de productions de Wcstco entre la periode A-85 et A-88 signific qu'au lieu de pouvoir produirc en moyenne 186 230
06:05:38 PM 12- 15-2008 7 /13 POIDS PO/DS POIDS LIVRE MO YEN PAYE 261 429 kg 2,24_kg 257 965 kg 317 742 kg 2,23 kg 314673~ 250 640 kg 2,16 kg 246 908 k2 444 936 kJ?. 2 23 kg 440214 kg._ 239 791 kg 2,26 kg 235 913 kg 363 890 kJ?. 2.22 kg ... 358 343 ks _ 248 230 kg 2.32 kg 244 653 ke. 118 170 kg 2.23 kg 11 5 760 kg 2 244 827 kl! 2,23k2 2 214 430 k2 280 603 k2 2 79~ ?59 kl!
15069923990 GROUPE WESTCO - 5 poulets par semainc, Westco pourra seulement en produire 162 616 (12,68% de 186 230 equivaut a 23 614 poulets de moi ns);
f) En soustrayant de ce maximum de production (162 616 poulets par semaine) Jes 31 250 poulets que Nadeau obtient hebdomadairement d'autres sources, on obtient un total de 131 366 poulets par semaine, ce qui represente l 'obligation hebdomadaire de Westco au cours de la periode A-88;
g) En livrant une moyenne de 138 511 poulets par semaine a Nadeau au cours des quatre premieres semaines de la periode A-88, Westco a done cxcede ses obligations de livraison en vcrtu de l'Ordonnance interimaire par une moyenne de 7 145 poulets par semaine, ou 28 580 poulets au total (en utilisant l'hypothese que chaque poulel pese en moyenne 2 kg);
h) Le tableau suivant exprime lcs donnees pcrtinentes pour la periode A-88 : DATE DE TETES PtRIODE SEMAINE DEBUT UVREES A-88 l Nov. 9 2008 163 350 2 Nov. 16 2008 64 390 3 Nov. 23 2008 166 940 4 Nov. 30 2008 85 700 5 Dec. 7 2008 - 6 Dec. 14 2008 - 7 Dec. 21 2008 - 8 Dec. 28 2008 - Total (periode) 480380 Movenne Hebdomadairc 120 095 Contingent de production (polds vivaot) 10. Certains autrcs faits pertinents a la quantite de poulets livree par Westco a Nadeau se retrouvent a )'affidavit que j'ai souscrit le 5 novembre 2008 au soutien de la Requete en
interpretation de l 'Ordonnance interimaire de Westco;
06:06:17PM 12-15-2008 8 /13
POIDS POJJ)S PO/DS LIVRE MO YEN PAYi: 380 3 10 kg 2,33 kg 374 740 kg 148 580 kg 2 31 kg 144 544 kg 383 690 kg 2,30 kg 376 760 kg 195510k2 2 28 k2 192 152 kg - - -- - -- - -- - . 1 108 090 ke: 2,31 kl?: 1088196 k2 277 022 kl! l 659 696 kl!:
15069923990 GROUPE WESTCO 06:06:53 PM 12- 15- 2008 9 / 13 -6 -11. Tous les faits allegues au present affidavit sont vrais; ET J'A l SIGNt A SAINT-FRAN<;OJS, PROVINCE DU NOUVEAU-BRUNSWICK, CE 15' JOUR DU MOIS DE DECEMBRE 2008 ~;er;;:?;;?:::>
AFFIRM[ SOLENNELLEMENT DEVA NT MOI a Saint-Fran~ois, province du Nouveau-Brunswick, ce l 5e jo du is de decembre 2008 JOHANNE NADEAU Commissaire aux serments Ma nomination expire le 31decembre20.l.L .....
15069923990 GROUPE WESTCO Ceci est la PIECE « A » a laquelle il est fait reference dans I' affidavit de Thomas Soucy assermente devant moi en date du 15 decembre 2008
JOHANNE NADEAU Commissaireauxserments Ma nomination expire le 31decembre20.J./. .....
06:07:14 PM 12-15-2008 10/13
CONFIDENTIAL
15069923990 GROUPE WESTCO 06:07:33 PM 12- 15-2008 11 / 13 Ceci est la PIE ' CE « B » a laquelle il est fa it reference dans !'affidavit de Thomas Soucy assermente devant moi en date du 15 decembre 2008
JOHANNE NADEAU Commissaire aux sennents
Ma nomination expire le 31 decembre 20 .. . .~ -~-··
OGILVY RENAULT UP I S.EN.C.R..L. s.rl
Direct Dini: (514) 847-4891 Direct Fax: (S 14) 2S6-5474 clcfcbvrc@ogilvyrcnault.com
SENT BY EMAIL Montreal, October 29, 2008 Mr. Patrice Lavoie Competition Tribunal Thomas D'A rey McGee Building #600-90 Sparks Street Ottawa, ON KIP 5B4
Dear Mr. Lavoie: Re : Nadeau Poultry Farm Limited ("Nadeau") v. Groupe Westco lnc. ("Wcstco") ct al., Tribunal File No. CT-2008--004
We are writing futther to Justice Blanchard's direction of October 16, 2008 ("Direction") and to the Order of June 26, 2008, allowing the Applicant's application for interim relief under section 104 of the Competition Act (the "Interim Supply Order").
We also received yesterday further communication from counsel to the Applicant, attached hereto as Attachment A. In view of the content of that letter, Westco seeks to confirm that its interpretation and application of the Interim Supply Order is consistent with that Order. If Westco's interpretation is not maintained by the Tribunal, Westco seeks further direction as to the precise nature of its supply obligations in this interim period. Westco does not seek, at this point, to vary the Interim Supply Order, merely to ensure the application of that Order is consistent with the facts and ass umptions that led to its terms.
I Background and Source of Reference Figure of 271 ,350 Birds per week As discussed in greater detail below, Westco's understanding of the lnterim Supply Order is that the level of supply to Nadeau was to be maintained at prior levels (100% of Westco's allowed production pursuant to the applicable period's quota) with allowance for a reduction in the supply of chicken as Nadeau obtained replacement chicken.
Paragraphs 57 and 58 of the Interim Supply Order provide as follows:
Avoco1s, 1gtn1S dt brt¥tlS Bu<tau 1100 Hl6phone (514) B47°47d7 ogilvyrenaull com ti agents dt marques de commttct 1981. ••tnue Mc01ll College u1• copl1u1 (~14 ) 286-S.C /4 Montreal (Ou~btt) HlA lC 1 Canada
Monrrhl 0 11owa Ounoe To ron lo Londros
OGILVY RENAULT 111'/S.t.N,t.A.L.u.l Page 2
[57) The Respondents are to cominue to supply th..: Applicant with live chickens on !he usual trade terms at the current level of weekly su1mly. namely 271.350 live chickens.
(581 This requirement to supply will last until a final decision is made on the merits of the application unch:r section 75 of the Act. This volume of supply is to be reduced by 25,000 live chickens per week upon the first delivery of the live chickens to the Applicant expected from Nova Scotia in September, 2008, and further reduced by any other supply of live chickens the Applicant may secure during this interim period. [emphasis added'I
The "current level of weekly supply" represented, at the time the Interim Supply Order was issued, all of Wcstco's and the other Respondents' production as allowed under their respective production quotas (which are allocated in kilograms of live chicken per period). The number of 271,350 birds referenced in the Interim Supply Order to reflect this current level of supply was a fictional figure put forward by Nadeau based on the following assumptions:
• Wcstco was deemed to be supplying Nadeau with roughly 186,230 birds at the time the application for interim relief under section I 04 of the Competition Act was filed by Nadeau, using an hypothetical average weight of 2kgs/bird;
• At the same time, Dynaco was deemed to be supplying Nadeau with approximately 26,450 birds, using the hypothetical average weight of 2kgs/bird; and
• At the same time, Acadia was deemed to be supplying Nadeau with approximately 58,670 birds, using the hypothetical average weight of 2kgs/bird.
Nadeau's representative for the hearing of Nadeau's application for interim relief, Mr. Tavares, clearly stated that the numbers used to reference the weight of chicken were approximate while the quotas, expressed in kilograms, were exact numbers (the 2kgs/bird measure. therefore. was not an exact number):
Attached hereto and marked as Exhibit "D" to this my affidavit is a chart prepared by Yves Landry, General Manager of Nadeau ("Mr. Landry"), the contents of which I verily believe are tn1c. It shows all of New Brunswick's chicken quotas, by kilograms, for th..: quota period A83, which covers the 8-week period from Febrnary 3, 2008 to March 29, 2008. As each chicken weighs fil2Qut 2 kilograms, the chart represents a total for New Brunswick of about 365.800 chickens per week. The chan shows the nominal quota-holder (for example, "Montagnaise"), as well as the controlling producer groups.
(Tavares Allidavit, March 14, 2008, paragraph 28)
I l()(SMTL ..~ 0.i7 I ~~'.f>
(Emphasis added)
OGILVY RENAULT Page 3
The 2kgs/bird assumption was also explained by Mr. Soucy during the interim order proceedings:
Poids moven d 'un poulet : 2 kilogrammes. Ce poids moyen est utilise afin de s implifier les donnees et Jes rendre comparables a celles utilisees clans I'A ffidavit Tavares. Cependant, le commerce du poulet c t le calct1I des quotas sc fait generalement par kilogrammes el non par nombre de poulets en raison du fail que certains types de poulets comme Jes poulets a r6Lir peuvenl avoir un poids moycn supcrieur d deux ki los. II ne s 'agil done pas de donnccs cxactcs lorsque nous mentiormons le nombre de poulets par anncc ou par scmainc. Toutcfois. le nombre de kilogrammes. lui, est exact.
(Emphasis added) (Soucy Affidavit dated M:iy 29, 2008, Exhibit C, "Formule de Conversion et D(itails des Colculs E./Jectues par Monsieur Thomas Soucy")
Exhibit C, referred to above contains the basis and the explanations for all statistics and comparisons used by Mr. Soucy in his affidavit that was before the Tribunal.
The production quotas allocated to Westco and to other producers arc established in terms of kilograms and not in number o f chickens, and the approximate :figure of 186,230 birds used to reflect the "current level of weekly supply" was thus only arrived at on the basis of a 2kgs/bird assumption made by Mr. Tavares. Indeed, the levels of Westco's actual supply to Nadeau vary considerably and have never reached, in any given week, the exact figure o f 186,230 chickens. Over the last year, Wcstco has actually supplied a weekly average of 2kgs/birds only twice (both times in January, 2008).
II Current Supply of Birds to Nadeau from Wcstco As the attached charts confinn, if the numbers of birds that have been supplied by Wcstco arc expressed in the same manner and using the same assumptions made for the purposes of the Interim Supply Order, Westco has met or exceeded its supply obl igation, taking into account the replacement birds obtained by Nadeau which have, to date, been applied against Wcstco's supply obligation.
OGILVY RENAULT UP I S.f.N.C..U. w.L Page 4
Period A-86 BEGINNING HEADS PERIOD WEEK DA TE DELIVERED A-86 1 Jul. 20 2008 186 486 2 Jul. 27 2008 151106 3 Aug. 3 2008 109 840 4 Auo. 10 2008 120 648 5 AUQ. 17 2008 248 200 6 Aua. 24 2008 117 362 7 Auo. 31 2008 207 230 8 Seot. 7 2008 122 100 Total (period) 1262972 Weekly I averai:ie 157 872 Total production allowed by the provincial board (live weight) For the period A-86, Westco's supply obligation was 161 ,230 birds at an assumed average weight of 2kgs/bird (that is, 186,230 less the replacement supply of 25,000 obtained by Nadeau). This translates into 2,579,680 kgs over the period. Hence, the totality of Westco's weekly production, except for said 25,000 birds has been supplied to Nadeau during period A-86. The "paid weight" colunm refers to the weight declared by Nadeau to the provincial authorities and used by Nadeau to pay Westco on a per kg basis.
As indicated above, Westco supplied a total of 2,730,362 kgs in live weight to Nadeau which, if expressed using the 2kgs/bird assumption, means that Westco effectively supplied 1,365,181 chickens (an average of 170,648 chickens per week for the period). Said otherwise, over the period A-86, Nadeau received a larger volume of chicken than it was entitled to under the Interim Supply Order.
l'JOCSM'I I.: Hl.n I :.i .r,
WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 395 046 ka 2,12 kg 387 514 ko 298 615 ka 1,98 ko 295 240 ko 241 746 kg 2,20 kg 238 630 kg 261 071 ka 2.16 kg 254 688 ko 536 863 kq 2,16 kg 529 416 kg 253 201 ka 2, 16 ko 250 670 ko 472 800 kq 2,28 kg 465 912 kg 271 021 ko 2,22 ko 266 284 ko 2 730 362 kg 2,16 kg 2 688 354 kg 341 295 kg 2 929168 kg
OGILW RENAULT UP I S.£.N.CAL. sr.L Page 5
Period A-87 BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-87 1 Sept. 14 2008 116 838 2 Seot. 21 2008 142 740 3 Sept. 28 2008 116 260 4 Oct. 5 2008 199 830 5 Oct. 12 2008 105 870 6 Oct. 19 2008 - 7 Oct. 26 2008 - 8 Nov. 2 2008 - Total (period) 681 538 Weekly I averaQe 136 308 Total production allowed by the provincial board (live weight) For the period A-87, with the additiona l 6,250 birds obtained by Nadeau and again applied against Wcstco's supply obligation, the required supply obligation of Westco was l54,980 birds at an assutm:d average weight of 2kgs/bird (that is, 186,230 birds less the replacement supply of 31,250 birds obtained by Nadeau). This translates into 2,479,680 kgs over the period, or 309,960 kgs. per week for the period A-87.
For the period A-87, to date, Westco has supplied 1,5 14,537 kgs in live weight to Nadt.:au in the first 5 weeks of the period which, if expressed using tht: 2kg /bird assumption, means that Westco has supplied 757,269 c hickens for the five weeks beginning September 14, 2008 (an average of 151,454 chickens per week). For the reasons explained hereunder, the total delivery for period A-87 (all 8 weeks) will confirm that Westco in fact will, again, meet or exceed the supply level of 154,980 heads of chicken for the period, when expressed using a 2kgs/bird assumption.
Therefore, over the periods A-86 and A-87, Nadeau will have received a volume of chicken at least equal to the supply level set in the 1nterim Supply Order.
As the charts below will show, the levels of actual supply to Nadeau have varied considerably over time. We have set out below charts showing the level of actual supply from Wcstco to Nadeau over the last year.
WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 261 429 kq 2,24 kq 257 965 kq 317 742 kq 2,23 kq 314 673 ka 250 640 ko 2,16 kq 246 908 kq 444 936 kq 2 23 kq 440 214 kq 239 791 ko 2,26 ka 235 913 ko - kq - kq - kQ - ka - ka - ka - kq - kq - kq 1 514 537 k~ 2,22 k!'.) 1495673 kg 302 907 ka 2 796 359 kg
OGILVY RENAULT W' I s.E.N.C.U.. u .l Page 6
The level of actual production by Westco and sales to Nadeau vary from a low of I 59,401 kgs (period A-82, Week 8) to a high of 554,875 kgs (period A85, Week 6), which translate in an actual number of 86,255 chickens (period A-82, Week 8) to a high of 254,510 chickens (period A85, Week 6). These numbers vary depending on the quota levels (which are allocated by period), on the average weight of the birds delivered and on the levels of production (i.e. whether all barns are in operation for the week, etc). It should be noted that, prior to period A-86 and the
consideration of n::placement chicken, all of Westco's production was shipped and delivered to Nadeau.
BEGINNING HEADS PERIOD WEEK DA TE DELIVERED A-79 1 06-24 -2007 207 494 2 07-01-2007 186 464 3 07-08-2007 173 814 4 07-15 -2007 154 354 5 07-22-2007 175 044 6 07-29-2007 201 078 -· 7 08-05-2007 138 952 8 08-12-2007 179 348 Total (period) 1416548 Weekly I average 177 069 Total production allowed by the provlncial board (live weight) BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-80 _, 1 08-19-2007 202 674 2 08-26-2007 176 638 3 09-02-2007 173 956 4 09-09-2007 166 522 5 09-16-2007 180 024 6 09-23-2007 183 964 7 09-30-2007 160 128 8 09-07-2007 199 272 Total (period) 1 443178 Weekly I _a_~rage 180 397 Total production allowed by the provincial board (live weight)
WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 409 965 ka 1,98 ka 404 486 ka 395 674 kQ 2.12 ka 391 043 kg 352 288 kg 2,03 kQ 349 508 kQ 320 601 ka 2,08 kQ 317 587 ka 339 698 kQ 1,94 ka 336 621 kq 419 864 kq 2,09 ka 407 443 kg 274 624 ka 1,98 ka 271 703 ka 349 884 kQ 1,95 kQ 345 970 ka 2 862 598 kg 2,02 kg 2 824 361 kg __3 57 825 kq 2 972 668 kg WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 420 973 kq 2 08 kq 415 91 7 kg 359 236 ka 2.03 ko 355 136 ka 364 063 kg 2,09 kg 360 589 kg 332 019 kg 1,99 kg 329 519 kq 371 363 kQ 2.06 kq 367 004 kQ 391 757 ko 2,13 ka 386 607 ka 330 987 kq 2,07 kq 327 234 ka 426 038 ka 2,14 ka 420 645 ka 2 996 436 kg 2,08 kg 2 962 651 kg 374 554 kg 2 914 073 kq
OGILVY RENAULT W' I SLN.0.l, u .l BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-81 1 10-14 -2007 189 748 2 10-21-2007 167 974 3 10-28-2007 179 256 4 11-04-2007 182 214 5 11-1 1-2007 220 899 6 11-18-2007 129 964 7 11-25-2007 210 672 8 12-02-2007 152 544 Total (period) 1433271 Weekly ! average 179159 Total production allowed by the provincial board (live weight) BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-82 1 12-09-2007 158 190 2 12-16-2007 216 819 3 12-23-2007 11 7 022 4 12-30-2007 189 242 5 01-06-2008 222 034 6 01-13-2008 188 468 7 01-20-2008 153 21 5 8 01-27-2008 86 255 Total (period) 1 331 245 Weekly I average 166 406 Total production allowed by the provincial board (live weiqht) DOCSM 11• . }O ~'i I ~.No
Page 7 WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 385 286 ka 2,03 ka 381 152 ka 352 594 ka 2.10 ka 348 003 ka 370 074 kg 2,06 kg 361 633 ka 379 826 ka 2,08 ka 375 237 ka 438 460 ka 1 98 ka 432 435 kg_ 244 111 kg 1,88 kg 241 745 ka 435 639 kq 2,07 ka 431 143 kq 306 135 ka 2,01 ka 301 655 ka 2 912125 kg 2,03 kg 2 873 002 kg 364 016 kg 2 868 760 kg WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 319 917 ka 2 02 kg 314 566 ka 428 454 kq 1,98 kq 423 576 kg 218 327 ka 1,87 ka 216 088 kg 396 356 ka 2,09 ka 391 783 kg_ 443 448 kg 2,00 kq 439 074 kg 392 447 ka 2,08 ka 387 167 kg_ 305 980 kg 2 00 kq 301 625 kq 159 461 ka 1 85 kq 158 194 kq 2 664 391 kg 2,00 kg 2 632 073 kg 333 049 kg ·-2670611 kg
OGILVY RENAULT U.P I s.E.N.C.Jt.L, u .l. Page 8
BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-83 1 02-03-2008 158 675 2 02-10-2008 176 290 3 02-17-2008 177 435 4 02-24 -2008 238 739 5 03-02-2008 182 590 6 03-09-2008 203 309 7 03-16-2008 143 408 8 03-23-2008 247 924 Total (period) 1 528 370 Weekly I average 191 046 Total production allowed by the provincial board (live weight) BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-84 1 03-30-2008 177 562 2 04-06-2008 193 507 3 04-13-2008 154 184 4 04-20-2008 221 135 5 04-27-2008 164 909 6 05-04-2008 203 307 7 05-11-2008 223 708 8 05-18-2008 140 387 Total (period) 1 478 699 Weekly average I 184 837 Total production allowed by the provincial board (live weight) [)O('S\·! 11. ,;o; /f l l' .<>
WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 335 779 kQ 2,12 kQ 332 397 kg 359 571 kq 2,04 kq 357 401 kq 378 342 kq 2, 13 kq 373 583 kq 488 189 kg 2,04 kq 483 086 kq 383 718 kq 2,10 kq 379 378 kq 413 330 kg 2,03 kg 409 089 kg 303 538 kQ 2,12 kq 300 844 kq 519 672 ka 2,10 ka 513 120 ka 3182 140 kg 2,08 kg 3 148 898 kg 397 767 kg 2 979 968 kg WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 368 776 kg 2,08 kg__ _3 64 993 kg 404 050 kq 2,09 kq 399 258 kq 336 449 kg 2, 18 kq 331 579 ka 456 167 kq 2,06 kq 450 783 kq 339 745 kg 2,06 k!'.) 335 358 kg 419 589 kQ 2,06 kq 413 459 ka 468 613 kg 2,09 kg 4605~ 305 190 ko 2,17 ka 299 957 kq 3 098 581 kg 2,10 kg 3 055 920 kg - 387 323 kQ 3 051 954 ka
OGILW RENAULT UP/SLN.c.l.l. ul BEGINNING HEADS PERIOD WEEK DATE DELIVERED A-85 1 06-25-2008 220 900 2 06-01 -2008 185 852 3 06-08-2008 198 818 4 06-15-2008 181 746 5 06-22'-2008 163 036 6 06-29-2008 254 510 7 07-06-2008 149 962 8 07-13-2008 185 202 Total (period) 1540026 Weekly I average 192 503 Total production allowed bv the provincial board (live weight) This constant weekly variation further demonstrates that Westco cannot be considered to be in breach of its obligation to deliver a certain weekly quantity of chickens before the end of a specific period which, in the case of period A-87 is November 8, 2008.
When Westco's prodta.:tion numbers of chickens are expressed using the rationale set out above - which is the only interpretation consistent with the terms and objectives of the Interim Supply Order (that is, to maintain the supply at the levels previously provided to Nadeau and subtracting the replacement chicken) - , Westco meets, and for the period A-86 in fact exceeded, the terms and intent of the Interim Supply Order.
We ask that the Tribunal issue an order confirming Westco's approach to the continued supply of chicken.
III Curr ent Supply to Nadeau from Wcstco and Impact of Quota Reductions in A-86 and A-87
The Interim Supply Order was issued on June 26, 2008 during period A-85 (period ending July 19, 2008) at which time the quota allocated to Westco was 3,027,776 kgs for the period. Wcstco's quota was reduced for periods A-86 and A-87 by a total of 7.8% (3.26% for period A-86 and by an additional 4.53% for period A-87). The fact that quotas tend to vary from period to period was clearly established by Nadeau and the representative of Westco (see Soucy Affidavit at par. 1O (e) and paragraph 34 of the Reply submissions filed by Nadeau on June 19, 2008).
[)(J(.'):-.·11 1.. .~ 0371 ~}\h
Page 9 WEIGHT AVERAGE PAID DELIVERED WEIGHT WEIGHT 457 792 kq 2,07 kq 451 514 kq 385 806 kQ 2,08 kQ 381 524 kQ 423 581 kq 2,13 ko 418 734 ka 381 589 kQ 2, 10 kq 378 045 kQ 335 229 kq 2 06 kQ 330 789 kg 554 875 kq 2, 18 kq 548 716 kq 304 208 kg 2,03 kq 298 919 kQ 406 125 kq 2, 19 kq 397 495 kq 3 249 205 kg 2,11 kg 3 205 736 kg 406 151 kg 3 027 776 kg
OGILVY RENAULT lU'I s.t.N.C.~L. s.Tl Page 10
Westco's maximum production, therefore, has equally been reduced by 7.8%, which means that Westco would simply be unable to produce the same quantity of chicken as it produced at the time the order was issued.
Consistent with the Interim Supply Order, however, and notwithstanding this quota reduction, Westco has continued and will be able to continue to meet or exceed its supply obligation when its supply is expressed in number of heads of chicken using the assumptions that were in place at the time the Interim Supply Order was issued.
In fact, wheo the quota reduction is factored into the supply obligation, using the 2kgslbird assumption, Wcstco would be exceeding its obligations by an average of 11 ,000 chickens per week. A 7.8% reduction of the 186,230 average weekly supply corresponds to a reduction of 14,526 chickens per week, for a total of 171,704 chickens per week. This number has to be reduced by the replacement chickens obtained by Nadeau from o ther sources (31,250 chickens per week), which leaves a total obligation of 140,454 chickens per week. As explained above, the current supply provided by Westco to date in period A-87 is 151,454 chickens per week (or. an excess supply of 11,000 chic ken per week)
IV Alternative Resolution As is clear from lhc analysis set out above, Westco has never, over the past year, supplied Nadeau with 186,230 birds per week (the closest single week would be in July, 2007, period A-79, week 2, when Westco supplied 186,464 birds). This nwnber is a fictional figure based on an
assumed average weight of 2kgs/bird, used to reflect the "current level of weekly supply" at the time of the Interim Supply Order.
Westco had understood that the terms and intent of the Interim Supply Order were to pem1it Westco and the other Respondents to sell to customers other than Nadeau a certain portion of their "ctmcnt level of weekly supply" when Nadeau was able to secure replacement chicken. namely a proportion of their production quotas which is now equal to 31,250 birds. Westco has indeed been proceeding on this basis and has subtracted from its weekly supply to Nadeau a volume equal to what was represented by those replacement birds. llcnce, the totality of Westco 's production, except for said 31,250 birds has been supplied to Nadeau durmg period A-
87.
Jn the attached letter, Nadcau's counsel expresses the view that each Respondent is accountable for the chicken produced by its co-respondents. This is an untenable position. We~tco docs not control the numbers of chicken produced by either Dynaeo or Acadia and the reverse is equally true. That being said, it is Westco's understanding that Dynaco and Acadia have supplied, and continue to supply, I 00% of their production to Nadeau. That is, they continue to ship to Nadeau their "current level of weekly supply", as per the terms of the Interim Supply Order.
OGILVY RENAULT l1.P I s.E..N c.a.L, i-rl Page 11
In the circumstances, if the Tribunal determines that Westco's interpretation of the Interim Supply Order cannot be sustained, the only possibility left for Westco would be for it to supply all of its current production volume to Nadeau on a per week, as produced basis, up to the maximum allowed to be produced under its quota. As it indeed did prior to July 20, 2008. Even in such a case, production numbers would continue to vary by period and by week in accordance with Westco's quota and its production schedule. While such an approach would in fact erase those provisions of the Interim Supply Order dealing with the impact of replacement chicken (par. 57-58), it would, for the duration of the interim period, have the benefit of avoiding any further debate on the issue of Westco's, and the other Respondents', compliance with the Interim Supply Order.
Fixing the number of chickens that must be delivered by Westco every week based on a fictional average without considering the quota variations would lead to an interpretation of the Interim Supply Order that would not only be inconsistent with either Nadeau 's obligation to obtain replacement supply or the reality of a market in which productic>n levels arc never s tatic and in which quota allocations arc being reduced, but that would have the effect, in certain periods, of forcing Wcstco to be in v iolatio n of its own quota allocation.
We would be pleased to respond to any questions the Tribunal may have. Yours very tnily, <Eric C. Lefewre Eric Lcfe bvre c.c. Leah Price, Fogler RubinoffL J,P Andrea McCrae, Fogler Rubinoff LLP Joshua Freeman. Fogler Rubino.ff LLP Olivier Tousignant, Joli-Coeur, Lacasse, Geoffrion, Jette, St-Pierre Valerie Belle-Isle, Lavery De Billy
DOC!;MTL. ..1 0.17 I 2. 1 I·
Attachment « A »
fonlc·r. Rubinoff LLP B<miqt'rs & Sol ici tor~ 95 Wt·l lington Strcl:I Wnt Suitt· I 7.00. Toronro- Dnmininn Ccntr-c Toronto, ON M~J lZ!l Td: 416.8b4.9700 fax: 416. 'Ml.Hll'iZ WWW. rog Ins.mm
Reply To: Leah Price Direct Dial: ti 16.365 3716 October 28, 2008 E-mai I: lpricc@foglcrs.com Our File No. 0715264
VIA E-MAIL ONLY
Eric Lefebvre Ogilvy Renault LLP #1100- 1981 McGill College Avenue Montreal, Quebec IBA 3C1 Olivier Tousignant Joli-Coeur, Lacasse, Geoffrion. Jette, St-Pierre #600-1134 Grande Alice Ouest Quebec, Quebec G IS I E5
Dear Counsel: Re: Nadeau Poultry f_a_r_m_ L_t_d_. ·------·------·- . ··- . We have been advised that the Respondents havl! again last wel!k delivered far fewer chickens than the number required under the Interim Order. Anached is a chart showing actual deliveries up to and including A-87 Week 6, showing the shortfalls.
/\.s well. despite request, the Respondents have foiled to provide an updakd schedule showing numbers compliant with the Interim Order. Attached in this regard is Mr. Landry's email to your clients' designated representatives, to which our client has received no response whatsoever.
As matters currently stand, tht!refore. it appears that the Respondents have no intention or reinstating compliance with the Interim Order.
In view of Justice Blanchard's very clear Direction issued on October 16, 2008, we arc driven to conclude that the continuing breach is deliberate and contumelious.
Accordingly, if we do not rec~ive confirmation within 24 hours that compli<1n<.:e will be immediately reinstated, we will be forced to seek a show cause order pursuant to section 8 of the Competition Tribunal Act.
Pierre Beaudoin Lavery, De Billy Barristers and Solicitors #500-925 Grande Allee Quest Quebec, Quebec GI S IC I
• Foglc1~ Rubinoff Page 2 of 2 •••, l.1, 1'
This letter is directed to cowisel for all the Respondents, because the Interim Order was directed at all the Respondents. Any failure to deliver an aggregate total of 240. I 00 chickens per week is
therefore a breach by all the Respondents. As far as we are concerned, it is the Respondents' collective obligation to ensure that Nadeau receives the required number of chickens, and responsibility for any shortfall lies on all the Respondents. both collectively and as individual
entities.
Yours truly, INOFF LLP
cc Ron Folkes Client Andrea McCral', Fogla, Rubino.lfLLI' Joshua Freeman, Fo[(ler. Rubino.f/'LLI'
A-87 2008-09·14 2008-11-08 (Short) or Heads Ordered Over 2008-09-14 Week 1 214,728 240,100 -25,372 2008-09-21 Week2 191.994 240, 100 -48, 106 2008-09-28 Week3 248,480 240, 100 8,380 2008-10-05 Week4 215,340 240,100 -24,760 2008-10-12 Weeks 223,512 240,100 -16,588 2008-10-1 9 Week6 207,554 240,100 -32,546 2008-10-26 Week7 223,400 240,100 -16,700 2008-11-02 Week8 165,500 240,100 -74,600 1,690,508 1,920,800 -230,292 Actual numbers scheduled m.,rmbers
I nf I
From: Yves Landry [mallto:yves.landry@nadeaupoultry.com] Sent: Friday, October 17, 2008 12:03 PM
To: (patrick.noel@dynaco.coop); (westco_gus@hotmall.com) Subject: Cectule revisee A-87
Bonjour Daniel et Patrick. Pourriez-vous S.V.P. me faire parvenir une cedule revisee nous demontrant que nous recevrons de Dynaco, Westco et Acadia 240,1 00 poulets par semaine pour la pMode A-87.
Merci, Yves
17/ 10/2008
GROUPE WESTCO 15069923990 Ceci est la PIECE « c »a laquelle ii est fait reference clans I'a ffidavit de Thomas Soucy assermente devant moi en date du 15 decembre 2008
I
-::=,.-+-c,---.~~~~~-·-- -----------i sair a l'assermentation pour ______ JOHANNE NADEAU Commissaire aux serments Ma nomination expire le 31 decembre 20 .. U. ....
06:07:53 PM 12-15-2008 12 /13
DE0:::- 12-2008 16 : 15 CHI CKEN FARMERS OF NS u :.}~ ·e.'! F . Chicken Fanners ·~:~. of NEW BRUNSWICK 1es Eleveurs de poulet ~ NoUVEAu-BRUNSWI(!{ ........................................................................... ·································
Le 21 fevrier, 2008 Ferme Alexam Ltee. Lyne Nadeau 23 Avenue Du Rocher Edmundston, NB E3V 4Yl
Lyne, Votre contingent de commercialisation de poulets pour la A-85 est de 287,186 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-85. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswlckappliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-84 et A-85 seront calculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d1ci le 11 avril 2008. SVP indlquer le montant de kilogrammes qui ne sera pas produit.
SI vous avez des questions, n'hesitez pas de nous telephoner. Bien a vous, 1l/ .~·: J ,:! . . /,,' ,· // . /l...V-t__ _/. ... -{'__---~ Kevin Godin Assistant gerant
506 4E°d 2121 P . 07 277 Main Street Fredericton, NB E3A 1E l Telephone: (506) 452-8085 Fax: (506) 451-2121 nbchick:en@nb.oibn.com
DEC- 12 ·2008 16:1 4 CHICKEN FARMERS OF' -NB •. Chicken Fanners ~ ofNE\V BRUNSWICK Ies Eleveurs de poulet du NoUVFAu-BRUNSWICK ······ ··· ····· ······· ···· ····· ··-······· ····· ···· ··· ··· ······ ···· ··· ·· ···· · ····· ·· ··· ········· ··· ··· ····· ···
Le ler avril, 2008 Ferme Alexam Ltee. Lyne Nadeau 23 Avenue Du Rocher Edmundston, NB E3V 4Yl
Lyne, Votre contingent de commercialisation de poulets pour la A-86 est de 277,833 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-86. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-86 et A-87 seront calculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d1ci le ler juin 2008. SVP indiquer le montant de kilogrammes qui ne sera pas prodult.
Si vous avez des questions, n'hesitez pas de nous telephoner.
Kevin Godin Assistant gerant
506 451 2121 P . 06 'l.11 Main ~Hee1 Frederic to n. NB E3A l El Telephone: (506) 452-8085 Fax: {506) 451-212 l nbchicken@nb.aibn.com
DEC- 12-2008 16:14 CHICKEN FARMERS OF NB .... ,. Chicken Farmers ofN EW BRUNSWICK les Eleveurs de poulet du NouvFAu-BRUNSWICK ... ............. .......... .... ........ .. .......................... ~ .............. ............. .... .... .
Le 6 juin, 2008 Ferme Alexam Ltee. Lyne Nadeau 23 Avenue Du Rocher Edmundston, NB E3V 4Yl
Lyne, Votre contingent de commercialisation de poulets pour la A-87 est de 275.901 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-87. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-86 et A-87 seront calculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d'ici le 7 aoOt 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner. Bie~ /OLIS, /,/ /L, .__ ~~- /!__· Kevin Godin --· Assistant gerant
506 451 2 121 P.05 277 Main Street " Fredericton, NB E3A l El Telephone: (506) 452-8085 Fax: {506) 451 -2121 nbchicken@nb.aibn.com
DEC- 12- 2008 16:14 CHICKEN FARMERS Or NB '•• Chicken Farmers of NEW BRUNSWICK · poulet Jes Eleveurs de du:~· NouvFAu--BRUNSWICK , ***REVISE*** Le 18 juillet, 2008 Ferme Alexam Ltee. Lyne Nadeau 23 Avenue Du Rocher Edmundston, NB E3V 4Yl
Lyne, Votre contingent de commercialisation de poulets pour la A-87 est de 265,236 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la perlode A-87. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-86 et A-87 seront calculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d'ici le 7 aoOt 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner. Bi/Lo~ Kevin Godin Assistant gerant
506 451 Zl21 P .04 277 Main Stree1 e Fredericton. NB E3A lEI Telephone: (506) 452-8085 Fax: (506) 451-2121 nbchicken@nb.oibn.com ,
DEC- 12-2008 16 :14 CHICKEN FARMERS OF NB . " Chicken Farmers ofN EW BRUNSWICK !es Eleveurs de poulet du NoUVFAu-BRUNSWICK ··· ·· ······ ···· ·· ···· ·· ····· · ··· ······ ·· ······· ··· ········ ····· ············ ··· ····· ··-····· ·· ··· ········· ···
Le 18 aout, 2008 Ferme Alexam Ltee. Lyne Nadeau 23 Avenue Du Rocher Edmundston, NB E3V 4Yl
Lyne, Votre contingent de commercialisation de poulets pour la A-88 est de 252,274 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-88. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-88 et A-89 seront calculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d1ci le 3 octobre 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesltez pas de nous telephoner. z~~ Kevin Godin Assistant gerant
• 506 4?1 2121 P. 03 277 Main Street 11 Frederic ton. NB E3A IE! Tele phone: 1506) 452-8085 Fox: (506) 451 -2121 nbchicken@nb.oibn.com
DEC ··12- 2000 16 : 16 Chicken Fanners of NEW BRUNSWICK 1esEleveurs de poulet ~ NoUVEAu-Bm.JNSWI(I{ ......................................................................................................... .. .....
Le 21 fevrier, 2008 Samalex Inc. Rodrigue Nadeau 23 AvenueDu Rocher Edmundston, NB E3V 4Yl
Rodrigue, Votre contingent de commercialisation de poulets pour la A-85 est de ~4,044 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-85. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les perlodes A-84 et A-85 seront ca!culees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre dki le 11 avril 2008. SVP lndiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner. Bien a vous, ;L_~_/?~L~
Kevin Godin Assistant gerant
TOTAL P . 15
506 45 1 2 121 p. l '.-277 Main Street Fredericton. NB E3A l El Telephone: (506) 452-8085 Fox: (506) 451-2121 nbchicken@nb.oibn.com
DEC- 12-2006 16: 16 CH ICKEN FARMERS OF NB Chicken Farniers 11 ofNE\V BRUNSWICK les Eleveurs de poulet du NoUVEAu.BRIJNSWICK ·· ··· ··········· ········· ··········· ········ ········· ····· ···· ····· ······· ·· ···· ······· ··········· ··· ······
Le ler avril, 2008 Samalex Inc. Rodrigue Nadeau 23 AvenueDu Rocher Edmundston, NB E3V 4Yl
Rodrigue, Votre contingent de commercialisation de poulets pour la A-86 est de 352.188 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-86. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-86 et A-87 seront calculees ensemble.
SI vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d~ci le ler juin 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner.
Kevin Godin Assistant gerant
506 451 212 1 p. 14 LI I Morn )treer Fredericton. NB E3A 1E l Telephone: (506) 452-8085 Fax: (506) 451-2121 nbc hicken@nb.aibn.com
DEC- 12-ZOOO 16:16 CHI CKEN FARMERS O , F , NB . 506 451 2121 p . 13 277 Main Street Chicken Farmers ~ Fredericton, NB E3A !El of NEW BRUNSWICK poulet Telephone: (506) 452-8085 les Eleveurs de du Fax: (506) 451-2121 NoUVEAu--BRtJNSWICK n bchicken@nb.aibn.com ........ ..... .. · ··· · ···························· ······· · ··········· ·······-·· ··· ·· ·- - · ······· ······ ·· ·· ···· Le 6 juin, 2008 Samalex Inc. Rodrigue Nadeau 23 AvenueDu Rocher
Edmundston, NB E3V 4Yl
Rodrigue, Votre contingent de commercialisation de poulets pour la A-87 est de 349.740 kilogrammes. Ce contingent represente te maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-87. Tel que mentionne dans les Arretes, /.es Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-86 et A-87 seront calculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d'ici le 7 aoOt 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner. Bien a vous, ;/ . ~ I~ ·:/-/ -', - L_____ Kevin Godin Assistant gerant
D~C- 1 2-2008 16: 16 CHICKEN FARMERS OF NB Chicken Farmers ... of NEW BRUNSWI~K .. " les Eleveurs de poulet du .. NoUVEAu-BRUNSWicK , ***REVISE*** Le 18 julllet, 2008 Samalex Inc. Rodrigue Nadeau 23 AvenueDu Rocher Edmundston, NB E3V 4Yl
Rodrigue, Votre contingent de commercialisation de poulets pour la A-87 est de 336.220 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vivants que vous pouvez produire pour la periode A-87. Tel que mentionne dans les Arretes, Les Eleveurs de pou!et du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les perlodes A-86 et A-87 seront calculees ensemble.
Si vous ne pouvez pas produlre votre contingent, vous devez nous faire paNenir une lettre d'icl le 7 aout 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner. /L))~ Kevin Godin Assistant gerant
506 451 2 121 p . 1 ~ 277 Main Street Fred ericton. NB E3A lE l Telephone: (506) 452-8085 Fax: (506) 451 -2121 nbc hicken@nb.aibn.corn ,
DEC- 12-2008 16 :15 CHI CKEN FARMERS O . F . N . Chicken Farmers 11 of NEW BRUNSWICK E les leveurs de poulet du NoUVEAu--BRIJNSWICK .......................... ...... ............... ... .. ..... .... ..... .. ..... .......... .. ...... .. .. .. ......
Le 18 aoOt, 2008 Samalex Inc. Rodrigue Nadeau 23 AvenueDu Rocher Edmundston, NB EJV 4Y1
Rodrigue, Votre contingent de commercialisation de poulets pour la A-88 est de 319.788 kilogrammes. Ce contingent represente le maximum de kilogrammes de poulets vfvants que vous pouvez produire pour la periode A-88. Tel que mentionne dans les Arretes, Les Eleveurs de poulet du Nouveau-Brunswick appliqueront des penalitees pour la surproduction au-dessus de 102% base sur une periode d'evaluation de 16 semaines. Les periodes A-88 et A-89 seront catculees ensemble.
Si vous ne pouvez pas produire votre contingent, vous devez nous faire parvenir une lettre d1ci le 3 octobre 2008. SVP indiquer le montant de kilogrammes qui ne sera pas produit.
Si vous avez des questions, n'hesitez pas de nous telephoner. ;z_;:_~ Kevin Godin Assistant gerant
B . . 506 451 2121 p .11 277 Main Street Fredericton. NB E3A 1E1 Telephone: (506) 452-8085 Fax: (506) 451 -2121 nbchicken@nb.oibn.com
GROUPE WESTCO 15069923990 Ceci est la PIECE « D » al aquelle ii est fait reference dans I' affidavit de Thomas Soucy assermente devant moi en date du 15 decembre 2008
a l'assermentation pour-----JOHANNE NADEAU Commissaire aux serments Ma nomination expire le 31decembre20.l.L .....
06:08:12PM 12- 15- 2008 13 /13
File No . I Dossi er no .: CT-2008-004 Competition Tribunal IN THE MATTER of the Competition Ac t , R.S.C. 1985 , c. C-34, as amended
IN THE MATTER OF an Appl ication by Nadeau Ferme Avicole Limit6c/Nadeau Poultry Farm Limited f or an Order pursuant co section 103 . l granting leave to make application under section 7 5 of t he Compe t i tio n Act .
AND IN THE MATTER OF a n Application by Nadeau Ferme Avi cole Limitec/Nadeau Poultry Farm Limited for a n Interim Order pursuant to section 1 0 4 o f t he Compc t i ti on .Act .
BEFORE / DEVANT : The Honourable Just i ce Blanchard Ch airpe r son BETWEEN / ENTRE NADEAU FERME AVICOLE LIMITEE/ NADEAU POULTRY FARM LIMITED
Applicant - AND -GROUPE WESTCO INC . AND GROUP DYNACO , COOPERATIVE AGROALIMENTA:IRE AND VOLAILLES ACADIA S.E .C . AND VOLAILLES ACADIA INC./ACADIA POULTRY INC.
TENU A I HELD AT : Coinpctjtion Tribunal Suite 600 90 Sparks Street Ottawa (Ontario ) November 20, 2008 VOLUME 4
Respo ndents Tribunal de La concurrence Suite 600 90 , rue SparKs Ot tawa (Ontario) Le 20 novembre 2008
(ii) APPEARANCES/COMPARUTIONS
Ms. Leah Price For the Applicant Mr. Ron Folkes (Nadeau Poultry) Ms . Andrea Mccrae Mt". Joshua Freeman
Me. Den.is Gascon For the Respondent (Westco) Mc . Eric Lefebvre Mr. Geoffrey Conrad Mc . l\lcxandrc Bourbonnais Ms . Martha Healey
Me . Lou.is Mas son For t he Respondent Me . Oliv.ier Tous.ignctnt (Dynaco} Mc. PauJ Michaud Me . Pau l Routhier
Me. Pierre Beaudoin For the Respondent (Acadia) Mc . Valerie Bel le- Is l e
84 BARICHELLO Cr-Ex(Heale y)
MS. HEALEY : Which one was t hat? 2 DR. BARICHELLO: The Surrey Cooperative 3 Associa tion . 4 MS. HEALEY : Okay . British Columbia ? 5 DR. BARICHELLO: Yes. 6 MS. HEALEY : Okay . He wasn't in New 7 Rrunswick by any chance? 8 DR. BARICHELLO : No . 9 MS. HEALEY : All right . Thank you . 10 Turning to paragraph 26 of your report 11 and T apologi ze for j umping aro und, Dr. Bari chc llo . I tried t o 12 be thematic . I may have lost an efficiency in doing so . 13 [t ' s just a quick point I wanted to raise 14 with you. You mentioned in paragraph 26 , it's the second -- I ' m 15 sorry -- the third f ull sentence . 16 You say : "They" 17 being producers -- this is part o f the producer disc i pline -18 "arc required to produce exactly this 19 amoun t" -20 that being the quota amount -21 "in each quota period, which for chicken is 22 one sixth of t he year" . 23 DR. BARICHELLO: Ri.ght . 24 MS. HEALEY : And I just wanted to discuss 25 wi th you t he no tion o r the requireme n t that c hic ken be produced
85 BARICHELLO Cr-Ex (Hea1ey)
for the precise period . 2 I ' d li ke t o s ho w you a d ocume nt , Dr . 3 Bariche llo . Sorry , are you famil i ar wi th these t ypes of 4 letters ? 5 DR . BARICHELLO: Yes , I a m. 6 MS. HEALEY : Oh, okay . Okay . Thank you . 7 You obviously would not have received this 8 letter , but just for t he Tr i bunal ' s p u rpose what we ' ve prepared 9 - - and we ' ve discussed this with our friends this morning . I 10 wasn ' t sure i f Dr . Barichello spo ke French so just to make it a I I b it eas i er we had a n u noff i cial transla tion arra nged i n o ur 12 office . Ms . Mccrae has hdd a look at it and has confirmed it ' s 13 acceptable for t h eir p urposes . 14 MS . PRI CE : I assume Lhis docume n t wil l be 15 approved by someone? 16 MS . HEALEY : Yes , I ' m just coming to that, 17 Ms . Pr ice . 18 Affidavi t of Tom Soucy , July 16th, 2008 , Tab 19 24 . So it was t he i n i t ial affidavit . 20 (11 : 4 0 ) THE CHAIRPERSON : There f ore you wo u ld li ke 2 1 the document marked? 22 MS. HEALEY : l wou ld . I ' m happy to mark it 23 either as an exhibit or for purposes of identification . If Lhe 24 wi tness is suffici ently comfortable with the document we ' ll mark 25 i t but this type of documen t and o t he r s l ike i t wi l l he coming
86 BARICHELLO Cr- Ex(Healey)
in with Mr . Soucy . 2 THE CHAIRPERSON: Well , let ' s just mark it 3 for ide n tification . 4 MS. HEALEY: That ' s fine . 5 THE CHAIRPERSON: It wi ll bear e xhibit --6 for identification number ---7 THE REGISTRAR: Is this a public document? 8 MS . HEALEY : Yes , i. t is . 9 THE REGISTRAR : RW-2 . 10 - --EXHIBIT NO. RW- 2: II Affidavit of Tom Soucy dated July 16, 2008 12 MS. HEALEY: And may we simply leave the 13 unofficial translation with it, and simply for purposes of the 14 transcript? 15 THE CHAI RPERSON: If Ms. Pri.ce has no 16 difficulty with it . We h<we translation services here . But I 17 have no dif f icul t y . It seems to be a fair reproduction but I'm 18 not an expert in that area . 19 MS . PRICE: I ' m not s ure what t he purpose 20 is . If all Ms . Healey wishes to do is to say here's something 21 t hat t h is says for your bE=mefit , that ' s what it means i n order 22 to put a question that would be fine , but I do prefer not to 23 have unauthenticated unofficial documents i n the record in these 24 proceedings . 25 THE CHAIRPERSON: We ll, let ' s just identify
87 BARICHELLO Cr-Ex(Healey)
the letter as it was produced . 2 MS . PRICE: That ' s fine . 3 THE CHAIRPERSON: And from what I understand 4 Ms . Price to say , you can s how the unofficia l translation to the 5 wi tness ---6 MS. HEALEY: Thank you . That ' s fine . 7 I t ' s for a ---8 THE CHAIRPERSON: --- for fut ure purposes . 9 MS. HEALEY: fairly specific question . I 0 Tha n k you . II Dr . Barichello, you have t he Fre nch or 12 English in front of you? 13 DR. BARICHELLO: 'I.es , I do, both . 14 MS. HEALEY: You have both. Okay . 15 The issue, again just to take you back, was 16 that you ' d referenced that producers are required to produce 17 exact ly the amount in each quota period . 18 And what I j ust wanted to ver i fy with you is 19 that for t he pur poses o f penalty assessment though, quota may 20 not -- or production compliance may not necessarily onl y be 21 assessed over one period ---22 DR. BARICHELLO: Correct . 23 MS. HEALEY: i t may in fact be over two . 24 DR. BARICHELLO: Yes . 25 MS. HEALEY: Is t his consistent wi th your
88 BARICHELLO Cr- Ex(Healey)
understanding ---2 DR. BARICHELLO: Certain ly . 3 MS. HEALEY: of t he system? 4 DR. BARICHELLO: Yes . 5 MS. HEALEY: Okay . Would you also be 6 tamiliar then with a quota producer , say, for example, in the 7 we 've got a letter for period A-86 here, and you'll see the 8 letter refers to periods A-86 and A-87 being calculated together 9 10 DR. BARICHELLO: Yes . II MS. HEALEY: for the purpose of 12 compliance ---13 DR. BARICHELLO: Yes . 14 MS. HEALEY : and quota assessment . 15 So would you be Camiliar that a producer or 16 producers may under-produce or over-produce in the first period 17 and under- produce in the second and net out as falling wi t hin a n 18 acceptable range? 19 DR . BARICHELLO: Right . I mean , t his --20 each province handles these a little bit differently but that's 21 quite common to have a small amount of flexibil i ty l ike that . 22 MS. HEALEY : Okay . And then at the end of 23 the day we sec that at least for the chicken farmers in New 24 Brunswick penalties apply for over-production over and above 10?. 25 percent of the quota.
89 BARICHELLO Cr- Ex(Healey) DR. BARICHELLO : Yes , correct . 2 MS. HEALEY : And you're familiar with that -3 4 DR . BARICHELLO : Yes , I am . 5 MS. HEALEY: type of 6 DR. BARICHELLO: I am . 7 MS . HEALEY : small amounl of wiggle 8 room? 9 DR. BARICHELLO: Yes . 10 MS. HEALEY : And then again at the end of I I Lhe day though, once those q uota periods , Lhe net goal of every 12 producer would be to produce exactly to the l e vel of t he i r 13 quota? 14 DR . BARICHELLO: Exactly . 15 MS . HEALEY : Thank you . 16 Thank you very much , Dr . Bariche l lo. Those 17 a re my questions . 18 DR. BARICHELLO: Thank you . 19 MR. TOUSIGNANT: I would have two or Lhree 20 ques L len s . 21 THE CHAIRPERSON : Oui . Sil vous p l ait . 22 ---CROSS- EXAMINATION BY/CONTRE- INTERROGATOI RE PAR MR . 23 TOUSIGNANT: 24 MR. TOUSIGNANT : l\m I right t hat all the 25 chicken managed i n the syst em in New Brunswick or in Canada was