Alfons Weersink

The appellants, dairy farmers, purchased an ongoing dairy farm operation and sought an exemption from the Dairy Farmers of Ontario (DFO) policy restricting the transfer and merger of milk quota.

They wished to permanently transfer the newly acquired quota to their home farm without renovating the purchased facilities or milking there for the required five years.

The Tribunal found the DFO's quota transfer restrictions valid and authorized by the Milk Act.

The Tribunal dismissed the request for an exemption, finding the appellants' reasons did not justify circumventing the policy.

However, the Tribunal reduced the conditional penalty for failing to return the cows to the purchased farm from a 20% quota reduction to a 10% reduction.

The appellants, dairy farmers, purchased an ongoing dairy operation but only acquired a fraction of the associated land.

They moved the purchased herd to their home farm under a temporary shared facilities agreement, intending to renovate the purchased farm.

They later abandoned renovation plans and sought an exemption from the Dairy Farmers of Ontario (DFO) policy to permanently merge the quotas at their home farm.

The DFO denied the exemption and ordered the cows returned to the purchased farm, imposing a 20% quota reduction penalty if they failed to comply.

The Tribunal upheld the DFO's denial of the exemption, finding the appellants' desire for efficiency did not justify circumventing quota transfer policies.

However, the Tribunal found the 20% penalty disproportionate and reduced it to 10%.