Wednesday, March 18, 2015

Chicken farmers challenge price cut

Chicken farmers are not happy with a new pricing formula that cut their returns by 5.1 cents per kilogram in the current production period.

And so Henry Zantingh, chairman of Chicken Farmers of Ontario, told the annual meeting the marketing board is asking for another kick at the can.

Geri Kamenz, chairman of the Ontario Farm Products Marketing Commission, says the commission will consider that request.

And, if it decides that a review is warranted, it will hold another round of consultations.

The last consultations were a private and secret affair among the commission, the marketing board and the Association of Ontario Chicken Processors.

While the marketing board wants a review of the new pricing formula, the processors argue there should be an all-or-nothing acceptance of the changes and that the focus now should be on working together to grow the industry, find efficiencies and focus attention on consumers.

Both organizations have written letters to the commission outlining their positions.

While the marketing board letter talks about details in the new formula, the underlying message is clear: farmers don’t like the size of the price cut.