Fresh Ideas, Growing Together

Producer Margin

The table below shows the components of the producer margin as provided in Regulation 402 for quota period A-148 and as updated for A-174.

($/kg)
Producer margin items A-148 (reg. 402) a-174 change
Energy 0.0541 0.0577 0.0036
Repair & Maintenance 0.0134 0.0141 0.0007
Property Taxes & Insurance 0.0132 0.0166 0.0034
Office & Overhead 0.0230 0.0245 0.0015
Contract Services 0.0932 0.1073 0.0141
Labour - General & Management 0.1220 0.1399 0.0179
Return on Capital 0.0886 0.0970 0.0084
Working Capital Interest 0.0009 0.0009 0.0000
Farm Vehicle 0.0085 0.0089 0.0004
Depreciation 0.0726 0.0813 0.0087
Non-feed Additives 0.0022 0.0024 0.0002
     Operational and Capital Costs 0.4917 0.5506 0.0589
       
Levies and License Fees Before Recovery 0.0215 0.0217 0.0002
CFC Levy Accrual Recovery for Ontario   0.0010 0.0010
Avian Influenza Disease Insurance 0.0015 0.0015 0.0000
Modular Loading 0.0120 0.0120 0.0000
Final Depopulation Recovery   0.00155 0.00155
Phase-in Capital Cost   0.0115 0.0115
     Total Producer Margin 0.5267 0.5998 0.0731
Notes
 
  1. A-148 operational and capital cost items are updated to A-174 using changes of the following:
    1. Prices and price indices available through Statistics Canada, Farm Credit Canada, Bank of Canada, Ontario Energy Board and Canada Revenue Agency
    2. Productivity metrics, including:
      1. Barn Utilization (kg/ft2)
      2. Cycle Length (Number of Weeks/Cycle)
      3. Annual Production Volume in the Barn (kg/ft2)
      4. Days in Barn (Days/Cycle)
      5. Chick Conversion Ratio (Number of Chicks/kg Chicken)
      6. Farm volume (kg/quota holder)
  2. A-148 Levies and License Fees, Avian Influenza Disease Insurance, and Modular Loading costs are updated to the effective corresponding costs in A-174.
  3. For pricing periods up to and including A-168, the values for Operational and Capital Costs include Levies and License Fees. Starting in A-169, Levies and License Fees are now shown separately below the Operational and Capital Costs line.
  4. The FGMLP for Quota Period A-172 & A-173 includes an amount of $0.002 per kg that represents a recovery of the emergency depopulation charge that was not applied to the base chick prices prior to A-171. For Quota Period A-174, a final recovery amount of $0.00155 per kg is added to the FGMLP. 
  5. The increase to the capital cost elements of the producer margin in 2022 is intended to be phased in, and maybe subject to change, to the FGMLP in quota periods  A-174 to A-180. The amount of increase for A-174 is $0.0115 per kg which is added to the FGMLP. With this cost and depopulation charge ($0.00155) added, the Total Producer Margin for A-174 is: $0.5998.