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Learn More About the Volume Adjustment

 


DESCRIPTION An interim annual adjustment to reflect change in the cost of production due to changes in scale efficiencies brought about by changes in production volume
 
The adjustment reflects a change in the absorption of fixed costs as volume changes
 
These are needed in the interim years until a new survey is conducted and the pricing regulation has been amended
Measurement Methodology The change in volume is based on the change in domestic allocation to Ontario from the most recently completed year compared to the year before
 
Fixed costs are deemed to be 50% of: energy, repair and maintenance,
property taxes and insurance, office and overhead, contract services, farm vehicle, labour, depreciation and return on capital
Updating Frequency Annually updated in the first full quota period in a calendar year
Updating Methodology The volume change is determined using annual allocations from Chicken Farmers of Canada (CFC)