Cavendish Farms fighting rule requiring contract before potato planting

Irving-owned Cavendish Farms is making arguments before a tribunal in the hopes of overturning an order that would force it to sign contracts with farmers before planting season.

In 2008 and 2009, farmers were frustrated by delays from the company that forced them to plant before they knew how many potatoes Cavendish Farms wanted to buy and how much they would pay for them.

On Tuesday, P.E.I. Potato Board chair Boyd Rose testified how in 2008 the processing growers who sell to Cavendish Farms rejected three contract offers and didn't sign contracts until July, well after the potatoes were planted.

In 2009 the company told growers it was cutting the amount of potatoes it would purchase by 15 per cent, but individual farmers didn't know until after their potatoes were in the ground just how much each of them could sell to Cavendish .

In December of 2009, the Potato Board approved an order requiring processors to settle contract negotiations by the end of March. Otherwise the negotiations would go to conciliation, and then binding arbitration, in order to have contracts in place before planting.

This year binding arbitration was applied in the negotiation with McCain Foods. 

Cavendish is now suggesting a compromise. It will tell each grower on March 15 of every year the volume of potatoes they plan to buy.

The hearing continues on Monday.