Fresh Ideas, Growing Together

National allocation for A-174 set at +4.5%

BURLINGTON, ON – September 30, 2021 – National allocation for A-174 was set at +4.5% above the adjusted base at the Chicken Farmers of Canada (CFC) meeting on September 28, 2021.

The COVID-19 variants and the effectiveness of the preventative measures continue to be a leading factor for the A-174 allocation. While the Delta variant is posing an unknown threat, the general sentiment remains that the economy is transitioning towards new normalcy which includes increasing out-of-home food consumption and reduced food processing business continuity risks.

Planning for the A-174 period reflects an expectation of further lifting of restrictions that will increase social and family gatherings, out-of-home dining activity, and the impact of important market drivers.

In making its recommendation to CFC, Chicken Farmers of Ontario (CFO) consulted with the Ontario industry value chain and examined market conditions using available data to understand consumer demand as well as expected supply including imports.

CFO has framed its allocation recommendation based on a strategic approach of “balanced best interest outcomes” by weighing the various factors, perspectives, and dynamics resulting from the pandemic.

The volumes for domestic allocation, in eviscerated kilograms, for Ontario and Canada are: 
 
            Ontario Canada Ontario Growth* Canada Growth**
A-174 69,215,516 198,096,750 +5.14% +4.50%

* Relative to the adjusted base for the period; including a +0.21% growth from the A-163 and A-164 Recovery Mechanism.

** Relative to the adjusted base for the period.

Early-Pandemic Reset Recovery Mechanism:

The allocation for quota periods A-163 and A-164 was initially set in February 2020.

During the first wave of the extraordinary COVID-19 situation, a regional approach to resetting allocations was adopted for A-163 and A-164. This was a direct result of the pandemic and was designed to support the orderly marketing of chicken in all markets, and to demonstrate the flexibility of the supply-managed chicken sector.

This regional approach resulted in Western Canada receiving higher allocations than Central and Eastern Canada in A-163 and A-164.

At the CFC National Allocation meeting on September 28, 2021, a recovery mechanism for the Central and Eastern provinces, who experienced under-allocated volume in A-163, and A-164, was decided and announced.

Under this agreement, Ontario will receive a total of 2,500,962 kg eviscerated recovery kilograms, over at least eighteen quota periods, beginning in A-174. Certain situations may cause the periodic amount to be adjusted, which may result in the extension of the number of recovery periods.

Ontario anticipates volume allocations for A-175 will be set at the November 30, 2021, CFC Board meeting.