Sunday, January 25, 2015

Chicken pricing formula changes Feb. 22

Chicken pricing will change Feb. 22 at  the beginning of the marketing board’s quota period A-129.

It’s the result of consultations that began in 2012 between the Chicken Farmers of Ontario marketing board and the Association of Ontario Chicken Processors.

There were invitations to others to provide comments, but nobody else was directly involved, including hatcheries, feed mills, further poultry processors or their clients.

Before the process was complete last year, the Ontario Farm Products Marketing Commission ordered the chicken board to roll back prices to reflect improvements in feed conversion rates.

Nobody is saying what impact the new formula will have on prices on Feb. 22.

What the commission is revealing on its website is that there will be several factors weighing on three price adjustments per year – feed efficiency, the volume of chicken Ontario can produce and therefore the production efficiency of barns and changes in costs as measured by data collected to create an electronic simulation of a model farm.

Ten per cent of the least efficient farms surveyed were eliminated from the formation of the model farm.

The Ontario Farm Products Commission is leading in another set of negotiations, mainly between the chicken board and the AOCP, on the allocation of any increase in production granted by the national chicken agency to reflect growth in demand.


The chicken board has been holding district meetings with its producers to gather their views.

As is their habit, the commission, the marketing board and the AOCP are not answering questions posed by reporters or the general public.

In other words, the most powerful institutions in the Ontario farming industry don't think they need to answer anybody's questions.