Fresh Ideas, Growing Together

Allocating Growth Solutions

Allocation Reform has been a Board Priority
The Board introduced the topic of Allocation Reform at its Annual General Meeting in March, 2014 as well as in its Annual Performance Report stating that “CFO will deliver relevant, balanced, and effective allocation approaches, practices and processes that support the Ontario industry, evolving positively and reaching its full potential for growth, innovation and competitiveness”.
 
On September 26, 2014 CFO Board communicated to all farmer members and processors that it was in the process of evaluating how growth should be allocated to farmer-members and to processors, and that it intended to undertake broad consultations to seek input into its review process. 
 
Extensive and Thorough Consultations Held December 2014 to February 2015
In December 2014, the CFO working collaboratively with the Association of Ontario Chicken Processors (AOCP) and the Ontario Farm Products Marketing Commission as Team Ontario, announced a consultation plan and embarked on a comprehensive engagement and consultation exercise of reaching a broad range of stakeholders to seek views and opinions on allocation of growth. 
 

CLICK HERE to access the Team Ontario Allocating Future Growth Consultation material 

The consultation plan outlined some clear objectives for allocating growth:
  • Evolve the allocation systems (producer and processor) to improve the flexibility and responsiveness in capitalizing on growth opportunities in the chicken market place;
  • Create value by serving the needs of growing and emerging markets;
  • Encourage innovation, new business-building ideas;
  • Serve the needs of existing markets taking into consideration their size, importance and historical investment;
  • Develop a system that is predictable and stable which aligns the interests of key stakeholders in the chicken industry, and;
  • Encourage quality, efficiency and value creation.
The consultations were facilitated by Bryan Boyle & Associates and conducted between December 11, 2014 and February 10, 2015.  Views were gathered through 17 facilitated meetings and online submissions, collecting direct input from over 600 individuals representing a wide range of stakeholders and interest groups:
  • 10 farmer-members meetings
  • 3  primary processor meetings
  • 2 meetings with value chain partners (further processors, retailers, food service distributors, OBHECC)
  • 2 open public meetings
  • 1  ‘virtual’ meeting with Northern Ontario stakeholders – 7 locations participated via phone/web conferencing
  • Online input

To access input gathered via each of these forums CLICK HERE.

A Balanced Portfolio of Growth Solutions
Following consultations, the Board and Team Ontario have spent considerable effort reviewing, understanding, and reflecting on the views provided by the various stakeholders.
 
The Board focused on some key insights gained through the consultations:

  1. There is a definite demand for small-scale production above the current Small Flock limit
  2. Some Local needs appear to be unmet, especially in Northern Ontario
  3. A wide range of views prevail on producer allotment; however, the status quo of distributing growth pro-rata appears to be unpopular across a range of stakeholders
  4. A recurring theme of needing to meet growing & emerging markets; status quo of all pro-rata for processor allocation is not supported by most stakeholder groups
  5. There appears to be broad support for encouraging new entrant farmers and processors
Following extensive analysis and discussions, The Board has acted on its role not only as a regulator but also as a leader for responsible stewardship of the supply management system for chicken in Ontario. It has focused on its pivotal role in providing responsible, transformative leadership and being a catalyst for positive supply-managed industry evolution in a rapidly changing environment.

Today the Board is proud to announce a balanced portfolio of growth solutions that have been designed to drive specific outcomes that will strengthen the supply management system, accelerate value chain profitable sustainable growth and customer offering, and drive innovation thereby creating greater opportunities for Ontario.

Growth solutions include the introduction of 3 new programs plus the enhancement and maintenance of some existing programs:



CFO’s portfolio of solutions will help evolve supply management for chicken to one that is open and responsive and enable CFO to be a premier provider of fresh, high quality, locally farmed chicken. 

CFO is committed to meeting and exceeding the ever-changing needs and expectations of consumers, markets and our customers; responsibly growing chicken with disciplined, high assurance standards for food quality, farming practices, animal health and welfare, and biosecurity; and continually striving to create value in the communities within which we live and conduct our farming business.