The Ontario chicken marketing board says Yorkshire Valley Farms is making progress to become a new entrant in the processing sector.
Yorkshire Valley Farms intends to process for the organic chicken market. Earlier this year it was conditionally granted new entrant chicken processor status following a comprehensive and extensive due diligence review process conducted by a third-party business and financial consultancy for the directors of the Chicken Farmers of Ontario marketing board.
There are limited supplies of chicken for a keen demand from processors, so the chicken board allocates supplies from its member growers to each approved processing plant.
Yorkshire Valley is working towards a fall deadline to complete the commitments it has made to the board.
“Our success depends upon our ability to understand consumers, markets, our food customers and fellow industry-value chain stakeholders, and to ensure that we are responsive to their evolving needs,” said board chairman Henry Zantingh.
“We recognize the ongoing need to support our Ontario industry to meet the changing consumer demands for different types of chicken,
“Consumer tastes are evolving, becoming more diverse and distinct. Organic has been identified as a distinct market segment as well as one of the fastest growing market segments, and we see it as a key strategic building block in helping grow the Ontario industry.”
The board also said recently that it is working with business interests who are exploring the potential to establish a kosher chicken-processing plant. The only one Ontario had was bought out a couple of years ago by Sargent Farms which does not process for the kosher market. Sargent wanted the company’s access to chickens.
“Ontario has a rich tradition of growing and processing premium quality chicken and further investment by the new entrant processor Yorkshire Valley Farms will enhance the ability of our industry to meet consumer demand by providing locally grown, locally processed,
organic chicken,” said Rob Dougans, board president and chief executive officer.
“CFO’s goal is to drive strategic, sustainable economic growth by being responsive to, and consistently meeting, consumer demand and increasing chicken’s market share of consumer meat protein consumption,” Dougans said.
“This announcement also demonstrates the importance of building and implementing supply management policies and programs that can stimulate new industry development and investment, and which can continue to support and nurture the entrepreneurial energies and economic growth ambitions of the Ontario chicken industry.
Each year CFO advances a strategic market to be served by an approved new entrant processor.
CFO designated organic as the strategic market segment that should be served by new processor entrants with applications in 2015 / 2016.