Fresh Ideas, Growing Together

New Entrant Chicken Processors Program

Helping to shape future consumer market opportunities for premium Ontario chicken

Chicken Farmers of Ontario's (CFO) New Entrant Chicken Processors Program is designed to support new innovative growth opportunities and create shared value as the Board endeavours to meet current and emerging consumer markets. The CFO New Entrant Chicken Processors Program has in recent years enabled new market opportunities for the growing organic, kosher and halal market segments.
 
CFO is working to develop and expand Ontario businesses by better understanding farmer and industry value chain entrepreneurs and their needs, in order to advance a favourable Ontario supply management policy environment.

CFO recently consulted industry value chain partners and has announced additional programs as well as providing information in support of the original program. The innovative programs are:


Program Strategic Market(s) Application Closing Date
Additional New Entrant Chicken Processor Program Value added Friday October 27, 2017
New Entrant Chicken Processor Program Ethno-cultural Friday December 29, 2017
 
If you require further information on the New Entrant Chicken Processor programs please contact chris.horbasz@ontariochicken.ca

Learn more about the CFO New Entrant Chicken Processors Program: 

What is the 'Nature of Supply'?
For each program year, the Board may associate to each approved New Entrant Chicken Processor with an amount of kilograms of New Entrant Calculated Base that is non-transferable.

Strategic Market(s) Program Year Maximum Eligible Kilograms of Non-Transferable New Entrant Calculated Base
Value added  2017 200,000
Ethno-cultural 2018 200,000
 
In conjunction with the association of New Entrant Calculated Base, an applicant will be required to satisfy all applicable Federal / Provincial requirements relating to the processing of poultry, including obtaining appropriate licences, permits and approvals in that regard, within 24 months from the date of approval of the application and no later than the date on which the New Entrant Chicken Processor begins operations as a processor.

Who is eligible to participate?
Participants must:
  • Be a Canadian citizen and permanent resident of Ontario
  • Have access to a suitable chicken processing facility

What is the strategic market to be served?
  • The strategic market segment that should be served by new processor entrants to the Additional New Entrant Chicken Processor Program is Value Added such as organic, free range, pasture raised, specific breed etc.
  • The strategic market segment that should be served by new processor entrants to the New Entrant Chicken Processors Program is Ethno-cultural – serving markets in the large and diverse Ontario ethnic communities

What is the application deadline?
The application deadlines are:

  • Additional New Entrant Chicken Processor Program -  Friday October 27, 2017
  • New Entrant Chicken Processor Program – Friday December 29, 2017 
Please submit your completed application in confidence to Regent Law via e-mail:
 
2017NECPP@regentlaw.ca;  or   2018NECPP@regentlaw.ca
 
Please submit two hard copies of the completed application by mail within five business days to:   
 
Regent Law Professional Corporation
1401-150 Metcalfe Street
Ottawa, ON K2P 1P1
 
Upon receipt of the application, confirmation of receipt will be provided within 24 hours and Regent Law will enter into a confidentiality agreement to keep the Applicant information entirely confidential other than from the Special Committee appointed for evaluation of applications who will also be bound by the agreement.
 
An application fee of $1000 should accompany each application. Please make cheques payable to Chicken Farmers of Ontario. 

What are the application requirements?
  • A comprehensive business plan that includes a sales and marketing plan including product details, volumes, margins and pricing in serving the Board advanced strategic market segments
  • Particulars of the plant that will process the approved supply, including, purchase agreements, environmental studies and approvals, any planning milestones for renovation or construction and the planned date for the plant being fully operational
  • Verification of relevant experience as a meat protein processor, procurement expertise to access Ontario chicken supplies and Federal / Provincial regulatory experience and compliance
  • Verification that the applicant has or is seeking the required Federal or Provincial inspection approval
  • Suitable evidence of financial strength to fund the project, working capital and confirmation from a recognized financial institution that the applicant will be able to provide a Letter of Credit in the manner and amount required by the Processor Regulation
  • Financial forecasts and models that detail the first years of operation and demonstrate the long-term viability of the project
  • Particulars regarding a committed and capable management team with experience, leadership, vision and drive to deliver a successful outcome
  • Operations management capabilities including animal care, processing, food safety, environmental and waste management and plant maintenance programs
  • Such other information as the Board may require including but not limited to particulars regarding procurement of chicken, contracting procedures with farmer-members and their potential locations in relation to the plant, payment procedures to farmer-members, transport arrangements and animal welfare protocols, chicken catching and loading arrangements and food safety protocols
  • A compelling demonstration of the Applicant’s commitment to the values of the Board and the Ontario chicken industry
  • Contracts, memoranda of understanding, or other such documents to substantiate the business case

What is the application evaluation process?
CFO will appoint a special committee comprised of an independent professional advisor and the CFO President/CEO. Applications will be submitted to the advisor directly. Once received, the members of the Special Committee will enter into a confidentiality agreement with the applicant, keeping the applicant’s information and identity entirely confidential.
 
The Special Committee may meet with the applicant to seek further information and clarification about the application, to gather more information and to listen to any further representations about the application. This will be an informal meeting and will be governed under the terms of the confidentiality agreement.
 
Once the Special Committee has conducted its meetings and is satisfied that it has sufficient information to proceed, it will make a recommendation to CFO for approval or non-approval of the application.
 
The recommendation made to CFO will be made without disclosing confidential information or the name of the applicant. Once the decision has been made by CFO, the name of the approved applicant will be released to CFO and will be disclosed to the public domain with such further and other information as the approved applicant agrees to be released in a form of a press release.

What happens after an applicant is approved?
  • Once a New Entrant Chicken Processor has been approved by the Board, the new entrant processor will become a processor focused on meeting the strategic market segment and the Board will grant the processor a New Entrant Calculated Base
  • The new entrant processor is expected to become an active participant in the industry
  • The new entrant processor shall at all times be governed by all applicable policies, regulations, orders and directions of the Board as a processor
  • The new entrant chicken processor may be required to provide regular reports in frequency and form as may be directed by the Board from time to time
  • In the event the Board determines that the operation or business of the New Entrant Chicken Processor has substantially altered from the business or operation upon which the Board based its decision to associate a New Entrant Calculated Base to such New Entrant Chicken Processor, then the New Entrant Calculated Base may be suspended or cancelled by the Board. Any suspension may continue for such period as the Board determines and until the Board has received and approved, on such terms and pursuant to such conditions as the Board may consider appropriate, of a revised business plan and application in relation to the business or operation of the New Entrant Chicken Processor

Is the New Entrant Calculated Base transferable?
  • The approved new entrant processor’s calculated base is non-transferable
  • In certain circumstances, the Board may consider transitional measures in relation to a particular application including approving on a temporary basis the utilization of New Entrant Calculated Base at an existing Class A or Class B processing facility by the New Entrant Chicken Processor and prior to such a New Entrant Chicken Processor commencing operations at its own processing facility

How long does a successful applicant have to complete the plant?
  • The processing plant must be completed with applicable CFIA / Provincial licenses within 24 months from the date the application is approved

Must all business participants use digital business services?
  • Approved participants are required to have the means to communicate digitally via email and to submit all forms once they are all made available on-line. CFO staff will be pleased to assist new entrant processors in the transition to digital business services
  • CFO is endeavoring to provide excellent customer service digitally in all aspects of the New Entrant Chicken Processor program

 


CLICK HERE to access the New Entrant Chicken Processors Policy