Agra-Farma,the US-based producer of Chobani brand of Greek-style yogurt,is set to enter into the Canadian market.
The company has received import permit in 2011 to sell its Chobani yogurt in Toronto.Following this,it entered into an agreement with the farmers to gain milk supply before it could set up its facility in Kingston.
Ontario Dairy Council,Yogurt makers Danone Canada and Ultima Foods had filed a case in provincial agricultural tribunal seeking to restrict the imports,stating that Chobani yogurt was not a unique enough product to require entry into Canada.
While Agra-Farma won both the cases against the companies,Ontario Dairy Council dropped its case after Agra-Farma entered into agreement with local farmers.Agra-Farma also has to appeal the federal court decision is later this month,reported Cbc.ca
Canada's dairy industry functions under the system of supply management,where the quantity of milk produced or imported is restricted,and milk prices for farmers are stable.
