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A-164

EXECUTING DUE DILIGENCE TO MEET FUTURE MARKET NEEDS

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What is the Ontario A-164 allocation?
On April 24, 2020, Chicken Farmers of Ontario’s (CFO) Board of Directors re-evaluated the Ontario A-164 allocation and adjusted domestic allocation at 12.6% below the adjusted base, which was 15% lower than what had been previously decided for A-164 by the Chicken Farmers of Canada (CFC) Board on February 5, 2020. CLICK HERE to review the original announcement.

On April 28, CFC advised that it had set the A-164 domestic allocation at 12.6% below the adjusted base. Accordingly, this setting of the allocation for A-164 by CFC was consistent with the adjustment previously made by CFO.

NEW INFORMATION ABOUT A-164

On May 21, 2020, after further analysis, CFC revised the A-164 allocation in light of changing market conditions. The revised Ontario allocation for A-164 is 11.35% below the adjusted base. 

The allocation change corresponds to an increase in targeted production by 1.43% compared to the CFC decision of April 28, 2020. 
 



Why is the A-164 allocation lower than what was previously decided?
After careful and quantitative analysis, on April 24, 2020, the CFO Board reset the Ontario A-164 allocation at -12.6% below the adjusted base for A-164 domestic allocation which was 15% lower than what had been decided previously for A-164 by the CFC Board on February 5, 2020.

Physical distancing has significantly impacted the food service sector. As a result, the total demand for chicken is now materially lower than pre-pandemic levels.

CFO’s provincial A-164 allocation is framed on a public policy of “balanced best interest” upon weighing the various factors, perspectives and dynamics resulting from the pandemic.

On April 28, CFC advised that it had set the A-164 domestic allocation at 12.6% below the adjusted base. Accordingly, this setting of the allocation for A-164 by CFC was consistent with the adjustment previously made by CFO. 

New Information:

On May 21, 2020, after further analysis, CFC has revised the A-164 allocation in light of changing market conditions. The revised Ontario allocation for A-164 is 11.35% below the adjusted base. 
When will the A-164 allotment be distributed to farmer-members?
A-164 Schedule 1s were originally delivered to CFO farmer-members on Friday, April 24, 2020.

The CFO Board is working towards delivering revised A-164 Schedule 1s to CFO farmer-members by a target date of Thursday, May 28, 2020. The Schedule 1s that were sent to farmer-members on April 24, 2020 will no longer be valid.




When will Ontario processors receive their A-164 Processor Allotments?
The CFO Board will deliver A-164 Processor Allocations as soon as possible.
If a farmer-member placed chicks in advance of the revised allotment, are they required to adjust their planned production?
Yes.

All farmer-members are now required to plan A-164 production based on the May 28, 2020 allotment, and must work closely with all applicable industry stakeholders in order to do so. This is very important and needs to be done in order to support the Ontario chicken market during the pandemic.

Farmer-members who place chicks on, or in advance of, the May 28, 2020 allotment will need to work very closely with their processor to ensure that the May 28 allotment target is achieved. Solutions will ultimately be based on the individual contracted processor’s market(s). All birds that are fit for loading must go to market.
Are there any changes to Market Development Assessments for A-164?
The allocation change is related to domestic production; no change has been made to market development allocation. 
When will the A-165 allotment be distributed to farmer-members?

CFO endeavors to distribute the A-165 allotment to farmer-members as soon possible.

Please appreciate that the COVID-19 pandemic has temporarily changed consumption habits and market demand, and consumer purchase behaviours are continuing to evolve. 
 
CFO is working to assess the evolving market needs by analyzing supply and demand factors as well as consulting with industry stakeholders and experts. 
 
The A-165 allotment will be designed on a public policy of “balanced best interest” upon weighing the various factors, perspectives and challenges presented by the COVID-19 pandemic

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.