PROVIDING FLEXIBILITY TO MEET IMMEDIATE MARKET NEEDS
Farmer-members may be asked to demonstrate flexibility in A-167 AND A-168 by:
- Marketing birds earlier than originally contracted – this will enable processors to supply the market with a more manageable supply of chicken
- Working closely with their processor to enable this flexibility
Due to COVID-19, the CFO Board of Directors will provide flexibility to farmer-members in A-167 AND A-168 which is specific to the following provisions:
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- Any under marketing that results from a deliberate early marketing (farmer-member and processor agree to pull birds early) can be re-grown in the sixth to twelfth quota period following A-167 and A-168 respectively
- If related to a deliberate early marketing, waiver of any penalties that would normally apply due to marketing outside of the home week or grace weeks
Why is the planned production for A-167 changing?
The second wave of the COVID-19 pandemic has challenged Ontarians in many ways.
The CFO Board continues to be responsive to public policy and public health provisions from all levels of government.
SECOND WAVE’S IMPACT ON THE CHICKEN SECTOR IN ONTARIO
The second wave is significantly impacting the availability of labour in many sectors.
Ontario chicken processors have informed CFO that some Ontario processing plants are experiencing increasing labour absentee rates – which is adversely impacting plant capacity.
In addition, the expanding stay-at-home orders have impacted the demand for chicken consumed outside of the home. Chicken consumption in the foodservice sector has temporarily declined.
CFO has worked closely with the Ontario supply chain to assess the evolving challenges and to find mitigating solutions.
The Board will continue to monitor the situation closely to ensure that the supply management system responds to challenges and responsibly meets Ontario’s needs.
In an effort to balance supply with demand expectations, Ontario chicken farmers, in consultation with industry partners, have temporarily reduced production effective January 12, 2021.
Will farmer-members have the opportunity to regrow the full amount of any underproduction resulting from a deliberate early marketing?
Under the CFO production rules, farmer-members that experience an under marketing are generally able to regrow up to 10% of the under marketing one year later, with the regrowth of the under marketed portion being spread over two quota periods. However, to accommodate the challenges of the COVID-19 pandemic, the entire amount of the under marketing that occurs in A-167 and A-168, if it is due to a deliberate early marketing, can be regrown in the sixth to twelfth quota periods following A-167 and A-168, respectively.
Will farmer-members have the opportunity to regrow the full amount of any underproduction resulting from any reason other than a deliberate early marketing? For example: disease.
No. Normal and existing regulatory provisions apply for any underproduction that is not a deliberate early marketing (i.e - farmer-member and processor agree to pull birds early due to COVID-19).
How will regrowth of the undermarketed kilograms be applied?
Kilograms undermarketed in A-167 and/or A-168 will be regrown over the next 6 to 12 allotted quota periods, respectively.
Do farmer-members have to notify CFO if their processor requests a deliberate early marketing?
No. CFO requires processors to track and pre-report all proposed shipments of birds that have an adjusted processing date due to a deliberate early marketing.
If a farmer-member’s contracted weight category changes due to a deliberate early marketing, will they still be paid the weight category farm-gate minimum live price by the processor?
There has been no change to the General Regulation that states that the processor shall pay the farmer-member the greater of the live weight category price or the Form 101 weight category price.
If a processor moves a farmer-member out of their grace week as a result of deliberate early marketing, will the farmer-member receive a home week penalty?
No. Home week penalties resulting from deliberate early marketing will be waived for A-167 and A-168.
Will there be any change to penalties for overmarketing of kilograms in A-167 if birds are kept in the barn past planned processing dates?
At this time, all existing regulations pertaining to overmarketing are still applicable.
The COVID-19 pandemic is an unprecedented situation, and the Board of Directors will re-assess the situation as needed.
Do these interim measures apply to farmer-members contracted with Quebec processors?
Yes, these interim measures apply to all CFO quota holders.
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 ongoing 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 encouraging farmer-members to make every reasonable effort to make a donation for 2021 and 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 firstname.lastname@example.org or Nancy Ward, CFO's Administrator, Master Data at email@example.com
- All questions related to Regulations and Policies should be directed to Chris Horbász, CFO’s Director, Corporate and Regulatory Affairs at firstname.lastname@example.org
- All questions related to penalties and compliance should be directed to Chris Horbász, CFO’s Director of Corporate & Regulatory Affairs at email@example.com
- All questions related to market demand and chicken consumption should be directed to COVID19@ontariochicken.ca
- Please send any further generic inquiries to COVID19@ontariochicken.ca
- All media inquiries should be directed to Kathryn Goodish, CFO’s Senior Director, Communications & Stakeholder Relations at firstname.lastname@example.org
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.