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. 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 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.
The CFC levy is a fixed item ($0.0044/kg) of the current chicken COPF. With the CFC levy increasing in A-157 to $0.0055/kg, CFO and Ontario chicken processors will be asking the Ontario Farm Products Marketing Commission to make a corresponding adjustment by the way of a regulation amendment. In the meantime and for A-157 and any intervening periods before such regulatory change becomes effective, the CFO and Ontario chicken processors have agreed that the amount of the increase will be accrued and applied in a subsequent quota period(s), through a mechanism that CFO and Ontario chicken processors will design and recommend that the Commission incorporate, as part of the regulatory change.