Fresh Ideas, Growing Together

A-163

PLANNING PRODUCTION BASED ON THE APRIL 7, 2020 ALLOTMENT TO ACHIEVE AN OVERALL REDUCTION OF APPROXIMATELY -15%

Farmer-members will need to assess, and adjust, any chick orders and/or placements as of Tuesday, April 7, 2020. Please be proactive and reach out to your hatchery ASAP to discuss and confirm your new chick order.

Farmer-members who have already placed birds in A-163 will need to work closely with their processors in order to achieve reduction targets based on market needs.

Click on the questions below for more information.

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Why was an adjusted allotment issued to farmer-members on April 7, 2020?
Our industry has observed that many consumers adjusted where and what they eat which resulted in a temporary decline in demand for fresh chicken. In an effort to balance supply with demand expectations, Ontario chicken farmers, in consultation with industry partners, temporarily reduced production effective Friday, April 3, 2020.

A new Schedule 1 was issued to all CFO farmer-members on April 7, 2020.

The approximate -15% is reflected as a “Manual Adjustment” on the Schedule 1. 



Are all farmer-members' April 7, 2020 allotments reduced by exactly -15%?
No. Each farmer-member’s situation is slightly different based on several production planning factors (production cycle, density calculations etc.). Please be advised that all applicable allotments were reduced as close to -15% as possible. Individual farmer-member allotment reduction percentages may vary slightly. The overall reduction is approximately -15%.

If a farmer-member placed chicks in advance of the April 7, 2020 allotment, are they required to adjust their planned production?
Yes.

All farmer-members were required to plan A-163 production based on the April 7, 2020 allotment, and needed to work closely with all applicable industry stakeholders in order to do so. This was very important and needed to be done in order to support the Ontario chicken market during the pandemic.

Farmer-members who placed chicks on, or in advance of, the April 7, 2020 allotment needed to work very closely with their processor to ensure the approximate -15% allotment reduction was achieved. Solutions were ultimately based on the individual contracted processor’s market(s). All birds that were fit for loading were required to go to market.

What were farmer-members who had planned placements after April 7, 2020 required to do?
Any farmer-member who placed chicks after April 7, 2020 were required to work with their hatchery and processor to assess and adjust their chick order. All chick orders needed to be aligned with the April 7, 2020 allotment.
Farmer-members were also required to work closely with their processors regarding targeted marketing dates.

Will farmer-members have the opportunity to regrow the full amount of any underproduction?
No, there will be no waiver of the existing policies and regulations pertaining to undermarketing in A-163
Will there be any change to penalties for overmarketing of kilograms in A-163 if birds are kept in the barn past planned processing dates?
The CFO Board of Directors has analyzed and reviewed the unique situation surrounding requested relief in A-163 due to unforeseen and pandemic-related circumstances. Individual impacted farmer-members will be contacted by a member of the CFO staff team for further information.
Does the April 7, 2020 allotment apply to farmer-members contracted with Quebec processors?
Yes. The April 7, 2020 allotment is applicable to all CFO quota holders.

When will I receive my A-163 Production Summary?
Farmer-members will receive their A-163 Production Summary the week of September 21, 2020.
 
What can I expect on my A-163 Production Summary?
Your A-163 Production Summary will show the net allotment that you received on the A-163 Schedule 1 that was issued on April 7, 2020 – as opposed to the original net allotment on the A-163 Schedule 1 that was issued to farmer-members on February 6, 2020 (before the necessary pandemic market-driven adjustments were made).


What about allotment adjustments originating from A-163 and A-164 allotments?
As you know, in quota periods A-163 & A-164, the chicken industry needed to reduce production to meet many marketplace challenges which were a direct result of the COVID-19 pandemic. 

The Chicken Farmers of Ontario (CFO) Board of Directors was dealing with an unprecedented situation and an unprecedented allocation reduction, and at the time, the Board communicated that subsequent necessary allotment adjustments may be made in future quota periods. 

WHAT KIND OF ALLOTMENT ADJUSTMENTS

As applicable, these necessary adjustments are designed to address any unintended short-term allotment discrepancies between farmer-members. 

As applicable, these necessary adjustments will be evenly distributed across the next three quota periods (one-third of the adjustment will be applied in A-165, one-third of the adjustment will be applied in A-166 and one-third of adjustment will be applied in A-167). Should a farmer-member with an applicable adjustment have a Crop Exception Period (CEP) in A-165, A-166 or A-167, the one-third adjustment will move to the next allotted quota period. 

It is the Board’s principle that no individual farmer-member should benefit or be disproportionately disadvantaged because of COVID-19. All farmer-members should equally participate in the national response (adjustments) due to changes in market demand. After careful review and analysis, individual farm variances stemming from the A-163 & A-164 allotment have been determined. 

THE PROCESS: 
  • The Board recognizes that each individual farmer-member’s business is different 
  • As noted, after careful review and analysis, individual farm variances stemming from the A-163 & A-164 allotment have been determined 
  • Determined variances will be rectified, and applicable allotment adjustments will be equally applied in A-165, A-166 & A-167 
  • As noted, farmer-members with an applicable adjustment that have a Crop Exception Period (CEP) in A-165, A-166 or A-167 will receive the one-third adjustment in the next allotted quota period 
  • Farmer-members will see their individual adjustments (as applicable) on their A-165 Schedule 1s, and onwards. Adjustments will be noted under the Manual Adjustments section of the Schedule 1 
  • A-165 Schedule 1s were sent out on Friday, June 19th 


What happens if a farmer-member had a Crop Exception Period (CEP) during A-163?
CEP letters have been re-issued to all farmer-members that had a Crop Exception Period in A-163 & A-164. The re-issued letters reflect the negative “Missed Additionals”. 

The Chicken Farmers of Ontario (CFO) Board of Directors was dealing with an unprecedented situation and an unprecedented allocation reduction, and at the time, the Board communicated that subsequent necessary allotment adjustments may be made in future quota periods to address any unintended short-term discrepancies between farmer-members. 

Farmer-members who incurred a CEP in A-164 received a revised CEP letter that shows their negative missed additional evenly distributed across the next three quota periods (one-third will be applied in A-165, one-third will be applied in A-166 & and one-third will be applied in A-167). 

Farmer-members who incurred a CEP in A-163 received a revised CEP letter that shows their negative missed additional evenly distributed over the next two quota periods (one-half will be applied in A-165 & one-half will be applied in A-166). Farms that incurred a CEP in A-163 had already been allotted a portion of their A-163 missed additional in A-164. This will be reflected in the final adjustment on the revised CEP letter.

Farmer-members who had a CEP in A-163 or A-164 can expect to see a negative number reported on the Missed Additional Crop Quota line of their A-165 Schedule 1. This will match the number on the revised CEP letter.

WHY IS THE CFO BOARD MAKING ADJUSTMENTS FOR CROP EXCEPTION PERIODS? 

It is the Board’s principle that no individual farmer-member should benefit or be disproportionately disadvantaged because of COVID-19. All farmer-members should equally participate in the national response (adjustments) due to changes in market demand. 


What about Market Development Assessments for A-163?
Market Development Assessments for A-163 that were sent to applicable farmer-members on March 25, 2020 are no longer valid.

Market Development Assessments for A-163 will be re-issued. Original payments will be returned, and new invoices will be issued.

How is CFO supporting food banks during COVID-19?
The CFO Cares: Farmers to Food Banks program is continuing to provide fresh, locally-grown chicken to food banks across the province.

During this unprecedented COVID-19 pandemic, CFO has temporarily made the program more flexible for food banks – expanding the program to include frozen, prepackaged, and further processed chicken products – in order to provide Premium Ontario Chicken to families and individuals in need.

CFO will continue to work in partnership with Feed Ontario to ensure Ontario’s food banks are supported.

The CFO Board is requesting that any farmer-members who have not yet made a donation for 2020 make every reasonable effort to support the food banks during this difficult time. Please CLICK HERE to make your donation if you haven’t already done so.

PLEASE CHECK BACK REGULARLY AS MORE DETAIL WILL BE PROVIDED, AND SOME INFORMATION MAY BE SUBJECT TO CHANGE 

For more information on any of the technical details listed above, please contact the following CFO staff-associates and / or industry stakeholders:  
 
  • All questions related to adjusting chick orders should be directed to a farmer-member’s hatchery
  • All questions related to the deliberate early marketing of birds should be directed to a farmer-member’s contracted processor
  • All questions related to the allotment, the Schedule 1, grace weeks, home weeks, crop exceptions periods should be directed to Liz Millward, CFO’s Analyst, Production Logistics at liz.millward@ontariochicken.ca or Nancy Ward, CFO's Administrator, Master Data at nancy.ward@ontariochicken.ca
  • All questions related to Regulations and Policies should be directed to Tessa Christie, CFO’s Manager, Legal & Regulatory Affairs and Corporate Secretary at tessa.christie@ontariochicken.ca
  • All questions related to penalties and compliance should be directed to Chris Horbász, CFO’s Director of Corporate & Regulatory Affairs at chris.horbasz@ontariochicken.ca

The CFO team is working very hard to support farmer-members. We endeavour to respond to all inquiries within a maximum 24hour time frame.

As always, farmer-members are reminded that all emergencies (disease, fire, environmental etc.) should be reported into the 24/7 CFO emergency services hotline at 1-877-SOS-BYRD.