The Farm-Gate Minimum Live Price (FGMLP) is governed by Ontario Regulation 402 made under the Farm Products Marketing Act which was last amended in 2015.
THE FOLLOWING ARE IN EFFECT FOR THE A-163 FGMLP
Modular Loading Cost Recovery
The Modular Loading Cost Recovery of $0.0120 per kilogram has been suspended for A-163. The temporary suspension does not alter the purpose of Modular Loading Cost Recovery which is to allow CFO farmer-members to recover costs associated with converting their barns to become modular loading compliant. The cost recovery is expected to resume in future periods until full cost has been recovered.
AI Insurance Premium
The PIE insurance premium in respect of the avian influenza disease insurance of $0.0015 per kilogram has been suspended for A-163. The insurance coverage remains unchanged and premiums will resume in future quota periods.
Chicken Farmers of Canada (CFC) Levy
The CFC levy is a fixed item of $0.0044 per kilogram in the current pricing regulation. The CFC levy increased in A-157 to $0.0055 per kilogram, and in A-163 it has increased to $0.0057 per kilogram.
The Ontario Farm Products Marketing Commission has been requested to make a corresponding adjustment by the way of a regulation amendment. In the meantime, for A-157 and any intervening periods before such regulatory change becomes effective - CFO and Ontario chicken processors have agreed that the amount of the increase will be accrued and applied in subsequent quota periods.
Chick Price
Effective A-163, the Ontario Broiler Hatching Egg and Chick Commission (OBHECC) has applied a charge of $0.00117 (plus HST) per chick related to emergency depopulation services. This charge has been added to the base chick price.
NEW COST OF PRODUCTION FORMULA
Since quota period A-129, the FGMLP has been based on a cost of production formula which was developed in 2013 using 2012 costs, and which was envisioned to be in place for, at most, five years.
A new cost-of-production-based pricing formula is in the process of being developed. The CFO Board is working with our processors and the Ontario Farm Products Marketing Commission to bring about the much-needed change in a responsible and timely manner.
During development of a new cost of production formula, sector stability will be maintained, with the FGMLP being determined under the current version of Regulation 402. The FGMLP continues to be fully responsive to input cost changes in feed and chick prices.
The CFO Board will provide information on the status of the pricing formula as there are any developments to report.