Despite Wet Weather, Tobacco Growers on Target

Source from:  Woodstock Sentinel Review 10/12/2011

Ontario tobacco growers endured several skirmishes with the weather during this growing season, but they prevailed and are expected to meet their contract commitments. "It was a year that had, from spring onward, many challenges for our growers," Fred Neukamm, chairman of the Ontario Flue- Cured Tobacco Growers' Marketing Board, said in an interview. "A wet spring forced delays in planting, then drought and extreme heat in July played their part in slowing down growth. Once temperatures reach the mid-30s, plants just shut down. Good weather conditions in August helped the plants grow a lot better, but harvesting was definitely delayed." Despite all that, Neukamm forecasted that by the end of harvesting this week, 193 licensed growers will deliver a total 46.3 million pounds of tobacco to their respective buyers. While the intermittent wet weather and drought conditions prevailed across the entire tobacco patch covering Norfolk, Brant, Oxford, Elgin and Middlesex counties, frost played a part in isolated fields around Delhi and Aylmer in the third week of September, while others narrowly missed that peril. Neukamm said indications are that the vast majority of growers will finish harvesting by the end of the first full week of October - more than two weeks later than normal. "Given all the challenges, I think the growers have done a remarkable job of growing and taking off a crop," Neukamm said. Still, the harvest is less than last year when 251 growers delivered a little more than 50-million pounds. Virtually all the difference is due to the board not issuing licences to about 60 growers still owed payments from True Blend of Tillsonburg, owned by Victor Osztrovics and Brian Poreba. True Blend began running into problems as early as the fall of 2010. By February of this year, growers were showing up outside the company's office. Then in early March, 45 growers descended on the Norfolk OPP detachment headquarters to appeal for an investigation. Shortly after that, 49 growers launched a lawsuit for $15 million against True Blend, Osztrovics and Poreba. Their statement of claim alleges they were not paid for tobacco shipped to and sold by True Blend. True Blend managed to pay off some of its debts before the lawsuit was filled, but there are still millions in outstanding payments. The growers also obtained an injunction prohibiting True Blend from disposing of any of its assets. Allegations in the statement of claim have not been proved in court. In August, the lawyer for the growers filed a motion alleging that True Blend, co-director and president Victor Osztrovics and his wife, Elysia -co-director, secretary and treasurer -violated an injunction prohibiting them from disposing of any of the assets belonging to True Blend or two of it directors, Osztrovics and Brian Poreba. Those allegations also have not been proved in court. The legal proceedings are still before the courts. In an earlier interview, Victor Osztrovics said he resented his portrayal in the media. He said he is caught in the financial problem as much as the growers, adding that he is a grower himself. The tobacco board also last spring also sent True Blend a demand letter ordering it to pay a performance bond it earlier posted as security for the crop. "That issue still has not been resolved," Neukamm said, "but we are working rigorously to resolve it." Enditem