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Learn More About Feed Cost

DESCRIPTION Feed costs associated with producing 1 kilogram of chicken 
It is calculated as the feed conversion ratio multiplied by feed price
The feed conversion ratio, as determined using the Farmer Survey, is 1.81302 
Measurement Methodology The feed conversion ratio has been calculated using data collected from the Farmer Survey
The feed price used is based on data provided by a third party organization, the Ontario Agri- business Association, which collects and reports average feed prices from independent feed mills 
Updating Frequency Every quota period
Updating Methodology Updated based on changes in feed prices
The feed price component of the formula is updated using an 8-week average of feed prices from independent feed mills in Ontario reported by an independent third-party, the Ontario Agri-Business Association (OABA)
For any quota period (8 weeks), feed price is based on the first four weeks of the preceding quota period and the last four weeks of the second preceding quota period
The average feed price reported by OABA is adjusted to maintain the difference between the average feed price obtained from the farmer survey in 2012 and the average feed price reported by OABA in that same period
The adjusted feed price for a quota period is multiplied by the feed conversion ratio to determine the feed cost