Ontario chicken production is rising in the wake of a new deal for sharing national demand increases among provinces.
Ontario gains more than other provinces under this deal, but processors in Saskatchewan, Manitoba and British Coiumbia have filed appeals against the new policy.
National production increased by 3.2 per cent for the first three months of the year to 271.9 million kilograms, but Ontario production increased by 6.1 per cent to 90.6 million kilograms.
For March, Ontario production was 8.1 per cent more this year than last.
Ontario has a new pricing formula for farmers that cuts prices when production volumes increase, so the base price for quota period A-130, which is current production, is $1.55 per kilogram, one cent less than for A-129 and six cents less than the same time a year ago.
The Ontario chicken board is appealing that new pricing policy to the Ontario Farm Products Marketing Council which did something quite unusual in dictating a pricing policy change.
Wholesale market prices increased by 3.4 per cent to $3.518 per kilogram for a composite of all types marketed.
Retail prices went down in Ontario from $11.58 per kilogram in January to $11.15 in February to $11.37 in March for boneless skinless chicken breast meat.
Production in the United States is 4.6 per cent greater this year than last and wholesale prices for boneless skinless chicken breasts are 3.3 per cent higher in April than a year ago - $5.03 compared with $4.87 and that compares with $4.50 this January.