Sunday, March 15, 2015

Chicken pricing formula revealed

The Chicken Farmers of Ontario marketing board has posted data showing how current prices were developed and how they differ from a year ago and before the Ontario Farm Products Marketing Commission ordered reductions to reflect improving feed efficiency.

The live price for the current quota period is $1.5556 per kilogram for the basic-size bird.

That’s made up of feed costs at 7383 cents compared with 7643 under the old formula; chick costs at 3345 cents vs. 3801 and a producer margin of 51 cents vs. 4784.

The margin is negotiated every six months between the chicken board and the Association of Ontario Chicken Processors.

Glenn Black of Providence Bay, Manitoulin Island, complained to the commission on Feb. 23 that the chicken board simply citing prices did not constitute the promised transparency.

The chicken board posted the background data on Mar. 3.