Changes will be made to applicable farmer-member allotments in quota period A-165.
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.
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Why is the CFO Board making allotment adjustments?
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.
What kind of allotment adjustments were made in A-165?
As applicable, necessary adjustments were designed to address any unintended short-term allotment discrepancies between farmer-members stemming from the A-163 & A-164 allotments.
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).
What is the Ontario A-165 allocation?
The National allocation for A-165 was set at -2.0% below the adjusted base at the Chicken Farmers of Canada (CFC) meeting on June 16th.
Why is the reduction amount in A-165 different than A-163 and A-164?
The COVID-19 pandemic and subsequent economic shutdown have brought about temporary but significant changes to consumption patterns. The demand for chicken has been dynamic and fast changing, as businesses and consumers have adapted and responded to the unfolding emergency measures.
After an initial surge following the implementation of emergency measures in March 2020, the demand for chicken weakened. Consumer demand now appears to have rebounded to a great extent, albeit at different rates for different product types and consumer channels.
Why are you making adjustments for A-163 and A-164 allotments?
It was determined that individual farm variances resulted from the A-163 and A-164 allotments due to differences in cycle factor and over/under marketings brought into the period. These variances are being adjusted equally on your A-165, A-166 and A-167 allotments. They are reported as a Manual Adjustment on your Schedule 1.
Why did I get a revised CEP letter?
If you had a CEP in A-164, you are receiving a revised CEP letter to reflect the negative missed additional amount to be applied equally over the next three quota periods (A-165, A-166 & A-167). If you had a CEP in A-163, you are receiving a revised CEP letter to reflect the negative missed additional amount to be applied equally over the next two quota periods (A-165 & A-166).
What if I have a CEP in A-165?
If you have a CEP in A-165, the adjustments for A-163 & A-164 will be applied beginning in A-166.