Fresh Ideas, Growing Together

Ontario’s Small Whole Bird Supply Program

As a supply management steward and leader, CFO’s goal is to make the supply management system and markets work well in the interests of consumers, CFO farmer-members, industry value chain stakeholders, and the Ontario and Canadian economies.
 
In striving to achieve its mandate, CFO has established the Small Whole Bird Supply Program: a new program focused on small whole birds and designed to meet a distinct Ontario consumer market such as Portuguese Barbecue Restaurants or ‘churrasqueiras’.
 
This innovative Program allows CFO to direct the supply of live birds through existing Ontario-based primary processors in order to supply specific markets currently in need of small whole birds.
 
Specifically, the Program will make available a supply of up to 400,0000 live kilograms per allocation period of Ontario grown chicken in the weight range of 1.60 kg to 1.84 kg for the currently existing under-met needs of Ontario’s small whole bird market.
 

Learn more about the Small Whole Bird Supply Program: 

What is the nature of supply?
The Board provides for the distribution of supplies of chicken to processors primarily in accordance with its Determination and Distribution of Supply to Processors Policy.  This Policy also provides for the identification and distribution of supplies from allocation growth to various growth programs established by the Board.  
 
All amounts of supply distributed by the Board in accordance with this Program to meet the small whole bird market will be associated with the approved processor.
 
Supply associated with an Approved Processor will not be tradeable, transferable, rentable or pledged as security for indebtedness.
 
The character and identity of supply associated with an Approved Processor will be maintained by the Board on a discrete basis and will not merge at any time with any other source of live chickens that may be held or received by the Approved Processor pursuant to other Board policies or regulations.
 
Prior to the end of a year of being associated with a supply under this Program, an Approved Processor may submit a request for renewal to the Board, seeking the same quantity of supply previously associated with that Approved Processor for the purposes of continuing to meet the needs of the small whole bird market, or alternatively seeking an increase or decrease in the supply for the year in which the renewal would apply, but in any event in an amount no greater than 400,000 live kilograms per allocation period.
 
The Board will evaluate each renewal request submitted by an Approved Processor in the context of the particulars that existed when the initial association of supply to the Approved Processor was made, which will include a determination of whether and to what extent the Program is satisfying the needs of the small whole bird market, whether a specific and tailored solution is still needed to supply the small whole bird market and, if so, on what basis.

What is the application process and requirements?
The application process and key dates of the Program are outlined below. 
 

Who can apply

 
A currently licenced Class A processor may apply either as a sole applicant where the processor is also distributing to the end customer, or jointly with a further processor and/or distributor.
 

Information to be provided

 
Applicants shall submit complete applications by the applicable deadline that shall include the following: 
 
1.    Name and contact information of the Applicant(s);

2.    Role within the value chain played by each Applicant;

3.    A comprehensive business plan that contemplates servicing the currently unmet small whole bird market and provides:

a)    a description of the specific consumer market to be served;

b)    a description of the proposed transmission of chicken from the processor to end users or customers within the small whole bird market including identification of the parties involved in the value chain, the role played by each party and the business relationships each has with the other;

c)    proposed arrangement or draft agreement evidencing the intended delivery of the eviscerated small whole bird to serve the identified specific consumer market, if available, and a list of the intended end customers within the specific consumer market to be served;

d)    a description of the nature of the business experience on the part of the Applicant(s) relevant to the Program including current participation as well as history in servicing the small whole bird market;

e)    detailed analysis to substantiate the particulars and extent of the currently unmet consumer market need that the Applicant intends to service through this Program;

f)     a description of how the Applicant plans to verify to CFO that supply associated with the Approved Processor pursuant to this Program is reaching the intended specific consumer market, and is addressing the identified unmet need of such market;

g)    any details that the Applicant considers will be material and unique in relation to: (i) the achievement of the marketing weights; and (ii) transporting requirements, in respect to the small whole bird market in Ontario;

h)    identification of any risks and reasonable and sustainable solutions in satisfying the needs of the small whole bird market including the expected variability in weights of live birds, and the proposed approach to mitigate the impact of such variability on eviscerated volumes actually delivered to the intended end customers within the specific consumer market to be served;

i)     product plan details involved in the Business Plan such as wet vs. air-chilled, eviscerated weights to be marketed, and eviscerated volumes to be marketed;

j)     Amount of supply being requested in live kilograms per allocation period for 6 allocation periods, without exceeding the Program maximum of 400,000 live kilograms;

k)    any further documentation that the Applicant may consider relevant to substantiate the Business Plan.

4.    A non-refundable application fee of $1,000 payable to Chicken Farmers of Ontario.
 

How to submit

 
Please submit your completed application digitally in confidence to Regent Law by email to:
 
SmallWholeBird@Regentlaw.ca 
 
Please submit 2 hard copies of the completed application by mail within 5 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 with each Applicant in due course 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. 

What is the application evaluation?
Applications will be evaluated on the strength of the Business Plan in meeting the objectives of this Program and serving the small whole bird market, and relative to other applications.
 
More specifically, consideration will be given to a Business Plan that best demonstrates:
 
  • the ability to provide a consistent and sustainable solution for the currently under-met small whole bird market
  • a viable and supported Business Plan
  • a compelling demonstration of the Applicant’s commitment to the values of the Board and the Ontario chicken industry

What is the application process?
Evaluation will be conducted by a Special Committee appointed by the Board comprised of an independent professional business advisor and the President & CEO of CFO. 
 
The Special Committee will enter into a confidentiality agreement with each of the Applicants, keeping the Applicant’s information and identity entirely confidential.
 
The Special Committee may engage other experts and meet with an Applicant on a confidential basis to seek further information and clarification about the application, to gather more information and to listen to any further representations about the application.
 
Once the Special Committee has conducted its meetings and is satisfied that it has sufficient information to proceed, the Advisor will produce a written report and make a recommendation to the Board in respect of the assignment of allocation growth kilograms to the Applicant(s) including (i) whether to assign allocation growth kilograms; (ii) how many kilograms to assign; and (iii) the conditions of assignment.
 
The recommendation made to the Board by the Advisor will be made without disclosing confidential information or the name of the Applicant(s). Once the decision for assignment has been made by the Board, the name of the Applicant(s) will be released to the Board and will be disclosed to the public with such further and other information as the Applicant agrees to be released in a form of press release.

What are the key dates?
Applicants shall digitally submit applications by the following deadlines: 
 
Consumer Market(s) Form of Application Application Closing Date Anticipated Dates for Board Decisions Communication of Board Decisions
Small Whole Bird Market Complete Application Friday, November 17, 2017 Late 2017 Late 2017


What are the conditions of supply assignment?
The association of supply with a processor under the Program will be done specifically to meet the current supply deficiencies related to the small whole bird market.  The continued entitlement to supply will be therefore directly related to (i) the ability of the Approved Processor to supply the 1.60 – 1.84 kg (live) Ontario-grown small whole bird to the identified consumer market; and (ii) the continuing need for supply of the small whole bird market to such market.  CFO will monitor participation in the Program to ensure compliance which may include without limitation, requiring substantiation by the Applicant(s) of its achieved supply to the small whole bird market in accordance with the Program.
 
Accordingly, every approved Applicant will be required to:
 
  • submit the amount of supply being contracted under the Program in each allocation period without exceeding the approved amount;
  • identify the corresponding farmer-members that have been contracted to grow the approved supply through the CFO contracting process;
  • make periodic reports to the Board in a form and frequency as may be required respecting utilization of the supply for the purposes of satisfying the needs of the small whole bird market, including marketing data and quantities and, without limitation, providing verification of the eviscerated volumes actually delivered to the identified consumer market in each allocation period; 
  • verify to CFO that supply associated with the Approved Processor pursuant to the Program is reaching the intended specific consumer market, and is addressing the identified unmet need of such market, in accordance with its Business Plan; and
  • submit to audits in order for the Board to obtain assurances that the information and reports of the Applicant provided pursuant to this Program are accurate and complete.
An Applicant with which allocation growth has been associated through the Program, and its co-Applicant, as may be applicable, may be further required to verify any or all components of the execution of its Business Plan at the request of the Board.
 
If an Applicant with which allocation growth has been associated through the Program, or its co-Applicant, is found to have contravened the Program, CFO may impose consequences as it reasonably deems appropriate which may include suspension of participation in the Program.

Where can I find additional information?
For further information on this consumer market please contact:
 
Chris Horbász, Director, Corporate and Regulatory Affairs at 289-288-4205.


CLICK HERE to access the Small Whole Bird Supply Program Policy.