In the most recent quota period, Ontario production
increased by 8.2 per cent over year-earlier levels; the national increase was
seven per cent.
Until now, Ontario production has lagged national averages, even though it had the right to produce more than the average.
Under a new deal negotiated last year, Ontario is supposed
to gain larger allocations whenever the national agency increases production
from year-earlier levels.
The new deal recognizes that Ontario has been chronically
short of chicken.
The Chicken Farmers of Ontario marketing board has used some
of the increase to enable small-scale production without quota to meet
niche-market demand and it has also opened an avenue for new processors to get
into the market that has been limited to existing processors based on the
chronic shortage.
The shortage had prompted processors to engage in bidding
wars that the province’s Ontario Farm Products Marketing Commission said were
indefensible.
The board rations supplies among processors, using plant
supply quotas.
Then processors began importing from Quebec and Quebec
processors retaliated by buying from Ontario farmers. That led to an
inter-provincial deal banning trade in live chickens.
