Tuesday, December 23, 2014

Ontario’s chicken growth detailed

The Chicken Farmers of Ontario marketing board is revealing details of the new national agreement that will enable Ontario to make gains whenever the national agency aims for increased production.

Ontario will immediately gain 14.2 million kilograms of base quota, yielded to it by all other provinces except Alberta (which is not a member of the national agency), but only when there is growth in the Canadian market. That will happen for the next 10 years.

Then it will also gain under the new agreement which parcels out market growth this way:

1. 45 per cent of the growth is given out to provinces according to their existing market share.

2. 7.5 per cent reflects population increases.

3. 7.5 per cent reflects increases in Gross Domestic Product (i.e. the economy).

4. 7.5 per cent reflects the Consumer Price Index.

5. 10 per cent reflects the Farm Input Price Index.

6. 7.5 per cent reflects the degree to which a province fills its quota.

7. 10 per cent reflects demand from further processors.

8. Five per cent is for “Supply Share”.


Factor eight is not explained in the year-end newsletter from the marketing board.