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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-169 to A-173.

($/kg)
Producer margin items A-148 (reg. 402) a-169 change
Energy 0.0541 0.0538 -0.0003
Repair & Maintenance 0.0134 0.0138 0.0004
Property Taxes & Insurance 0.0132 0.0161 0.0029
Office & Overhead 0.0230 0.0254 0.0024
Contract Services 0.0932 0.1049 0.0117
Labour - General & Management 0.1220 0.1367 0.0147
Return on Capital 0.0886 0.0970 0.0084
Working Capital Interest 0.0009 0.0009 0.0000
Farm Vehicle 0.0085 0.0088 0.0003
Depreciation 0.0726 0.0813 0.0087
Non-feed Additives 0.0022 0.0023 0.0001
     Operational and Capital Costs 0.4917 0.5411 0.0494
       
Levies and License Fees Before Recovery 0.0215 0.0217 0.0002
CFC Levy Accrual Recovery for Ontario   0.0012 0.0012
Avian Influenza Disease Insurance 0.0015 0.0015 0.0000
Modular Loading 0.0120 0.0120 0.0000
     Total Producer Margin 0.5267 0.5775 0.0508
Notes
 
  1. A-148 operational and capital cost items are updated to A-169 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-169.
  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 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. With this added charge, the Total Producer Margin for A-172 is: $0.5795.