The industry is embarking on some of the largest transformational shifts in its history. Ontario’s recent shift towards modular loading enables safe handling and transportation of birds and has many animal welfare, worker safety, and operational efficiency benefits.
On July 12, 2017, Chicken Farmers of Ontario (CFO) enacted a new Modular Loading Regulation that was designed in consultation with industry, and is intended to support this transformational shift. Over the past few weeks, the CFO Board of Directors, District Committee Representatives and CFO staff have been educating farmer-members and industry stakeholders through a series of meetings that took place across the province. The meetings were held to ensure that the farmer-member and processor communities have a comprehensive understanding of the new Regulation.
The information that was communicated at these meetings is now available on ontariochicken.ca and farmer-members are encouraged to visit the following sections of the website to learn more about the new Regulation and this transformational shift.
CLICK HERE to access the presentations from the 2017 Summer Farmer-Member Regional Meetings (which includes detailed information on the Regulation and Cost Recovery Mechanism)
CLICK HERE to access the Modular Loading Regulation
CLICK HERE to visit the Modular Loading section of ontariochicken.ca, which includes information on barn requirements for farmer-members and access to over 25 Frequently Asked Questions (FAQs)
CLICK HERE to learn more about the Modular Loading Cost Recovery Mechanism
CLICK HERE to read the Ontario chicken farms to be ‘Modular Loading Ready’ by 2024 news story
CLICK HERE to watch the 2017 Summer Regional Meeting video on CFO’s You Tube Channel
The antimicrobial use (AMU) strategy eliminates the preventive use of Category II antimicrobials by the end of 2018, and sets a goal to eliminate the preventive use of Category III antibiotics by the end of 2020.
Chicken Farmers of Canada's policy will maintain the use of ionophores (those antimicrobials not used in human medicine) along with antibiotics for therapeutic purposes to maintain the health and welfare of birds.
"Chicken Farmers of Canada has been a leader in antimicrobial stewardship, and this strategy provides continued confidence to consumers, customers, and to governments," said Benoît Fontaine, Chair of Chicken Farmers of Canada. "This strategy provides a sustainable means of meeting consumer expectations, while maintaining the ability for farmers to protect the health and wellbeing of their birds."
Consumers can be assured that Canadian chicken is free of antibiotic residues, and has been for decades. Canada has strict regulations with respect to antibiotic use and withdrawal times to ensure that chicken reaching the marketplace does not contain residues, which is monitored by the Canadian Food Inspection Agency.
This decision builds on the objective of eliminating the preventative use of antibiotics of human importance, guided by a comprehensive strategy that involves reduction, surveillance, education, and research.
The AMU strategy is consistent with the Canadian government's Action Plan on Antimicrobial Resistance and Use.
Chicken Farmers of Canada is responsible for ensuring that our 2,800 farmers produce the right amount of fresh, safe, high-quality chicken and that our farmer's views are taken into account when important agriculture and policy decisions are made.
How-To on-farm tools now cover all areas of the production process with documents on topics of hatchery management and broiler and broiler breeder management, as well as ventilation.
The newly published broiler series has been designed to give customers practical, hands-on, step-by-step instructions on key management practices.
They can be used as training documents or as everyday support for farmers showing what to do and how to do it, as well as providing help with any troubleshooting.
- How to set up a spot brooding circle
- How to set up whole house brooding
- How to monitor temperature and relative humidity
- How to assess crop fill
- How to bulk weigh broilers between 0 and 21 days
- How to individually weigh broilers from 21-28 days onwards
It suited to a tee the main theme of their buy local, buy fresh meat production and retail operation.
"We applied as soon as it started last year and we have done well by it," Josh Groves said in an interview at Vangro farm on Highway 54.
He showed freestanding stalls of chicks that are the latest addition to VanGro's lines of fresh lamb cutlets and prepared beef and pork products.
"We're moving into the second year having learned how to make it work for us."
The artisanal chicken program launched by the Chicken Farmers of Ontario in 2016 provides opportunities for small independent farmers to meet local demands for high-quality chicken.
"The Chicken Farmers of Ontario is continually looking to meet the changing needs of Ontario chicken consumers and markets," the organization says on its website.
"The program will help farms fill local food and seasonal markets and will give Ontario consumers more choice and options in how and where they buy locally grown chicken."
The CFO mainly deals with larger operations which must produce to a set quota of tens of thousands of chickens. Its artisanal program is meant to address the more modest needs of local farmers.
Under the program, non-quota holding farmers who wish to grow between 600 and 3,000 chickens each year can partner with independent producers to provide artisanal chicken for select markets. READ MORE
Under this project, the Poultry Research Chair at the University of Montreal's Faculty of Veterinary Medicine will assess various alternative strategies and their effects on flock performance. The latest research into anti-microbial resistance (AMR) builds on a previous project, also funded by Agriculture and Agri-Food Canada, and will seek solutions that can be applied across the entire poultry industry.
This contribution has been made through the AgriInnovation Program under Growing Forward 2, a five-year, $698 million initiative.
AAFC supports the development and adoption of industry-led initiatives regarding biosecurity and animal care to support the prudent use of antimicrobials.
Pierre-Luc Leblanc, President, Les Éleveurs de volailles du Québec said in a release “the Quebec poultry industry is committed to developing cutting-edge farming methods while maintaining strict, rigorous animal welfare standards. Flock health and the quality of consumer products are top priorities. Working with the Poultry Research Chair, we are taking the necessary steps to preserve and enhance these priority areas by building on research and development."
In the poultry industry we discuss cost/profit/loss in terms of hundredths of pennies. Those same pennies in a year equate to millions of dollars.
Properly evaluating any input — such as breed choice, equipment or feed additives -- at the broiler level can only be done with a properly designed commercial broiler trial within your complex.
Basing decisions on data collected from another complex or research is only a part of the story. In many cases it’s the beginning of the story, but can lead you down the wrong path for too long if not tested within your complex using your own system.
It might be tempting to follow the path of another complex, but more often than not there are nuances within your complex that will impact the end result. Most of the time you only have part of the other complex’s success story. You don’t have the same inputs or outputs.
A difference in live operations (inputs) and product mix (outputs) can greatly influence the profit/loss that might be generated by following the same path within your own complex. You need to write your own story to make the best decisions for your complex. That story is best told through a commercial trial.
The value attached to the decisions made based on the commercial trial results warrant a properly designed, communicated and executed trial.
A properly designed trial takes as many variables out of the equation as possible, except those you are comparing. For instance if you are testing different breeds, you want to have a farm with:
- Identical houses in equipment and design
- Two houses per treatment
- Same breeder flock ages
- Same hatchery and set date
- Same light, ventilation, feed and water programs
If there is a variable that could have influenced your data there will always be questions and concerns regarding the validity of the trial. The reason for at least two houses per treatment is that it allows you to choose one house from each treatment that closely mimics the other treatment in regards to mortality, morbidity and growing conditions. This takes out more of the variables that may have occurred during the growing cycle. Some of those variables that have been witnessed during the growing cycle are: running out of feed in one or more houses; environmental conditions; and chick quality
It is also recommended to repeat the trial or multiple trials for the same reason, but this is not always practical. Multiple trials help make the end picture clearer.
A properly communicated trial involves including many departments within your complex in a planning discussion weeks in advance. Having every department on board before the birds are set in the machines will result in the best outcome. Departments that need to be involved include: breeder department; hatchery; feed mill and delivery; broiler department; live haul; processing plant; and government institutions.
Communication about the trial will help minimize one of the biggest variables to a trial -- human error. Assign a trial point person or persons to follow the trial through the process. All departments need to take ownership and understand the importance of the trial results.
A properly executed trial generates the quality data needed to make the right decision. Typically the data needed is from live as well as plant performance. To obtain accurate live data you should select a random sample of birds from one house for each treatment, as discussed previously, the day before processing.
The weight samples should be kept separate by sex, and collected from three areas of the house: Back, Middle and Front. Either record individual weights, or use scales with the capability to calculate the standard deviation. Once you have your mean (average) and standard deviation for body weight (by sex), you can fill in the boxes that define the weight category cut-offs on either side of the mean (middle) weight (See image page 22). You will need to find the appropriate number of males and females for each weight range seen in the histogram below. In the end, you will have four males and four females that are between 1 and 2 standard deviations below the average weight, eight males and eight females that are between the average weight and 1 standard deviation below the average, etc..
These birds should be tagged and followed the following day to the plant. At the plant the birds should be reweighed and this individual plant weight will be your live weight. The birds should then be sent through your processing plant. This allows for you to see what the treatments will achieve in your operation. Typically, the carcasses would be removed from the line just before the chiller to take the variable of water uptake out of the equation.
The next step is to have a person that is well trained to debone the carcass and to collect the individual parts with the correct bird tag. Another person will need to record the weight for each individual deboned or whole part for each tag/band number. The data generated by your complex can then be analyzed.
Once you have the results from the well-executed trial, you can start working on the economics to help in your decision. The economic model should help you answer questions on how the inputs you are testing influenced your bottom line. These are some of the factors your economic model needs to consider:
- Will the change result in more/less housing needs?
- How did the change influence live performance? (FCR, mortality, growth rates
- How did the change influence processing performance? (Meat quality, yield, condemdation)
- Will the change result in updating your system? (Hatchery, feed mill, processing plant)
Take into account all the departments involved in the trial itself. Sometimes decisions may result in a positive for one department and a negative for another department. If you answer how each of those departments will be affected, your goal will have been met - the scenario that results in the most hundredths of pennies for your complex.
A link is provided below on how Cobb recommends performing a commercial yield trial:
March 8, 2016 - When you go to a restaurant for an expensive dinner, you expect that you’re going to get exactly what you ordered.
But what if the restaurant or its supplier substituted your sword fish for a cheaper product like tilapia and didn’t tell you? The products might be similar in taste and appearance, leaving you misled about what you really paid for.
The same problem can exist in poultry. Consumers and importers expecting to purchase fresh chicken raised by Canadian farmers could potentially be deceived into buying meat from older laying hens (called spent fowl) that are a by-product of egg production.
While birds called broiler chickens are raised for meat consumption and are the product most frequently found in meat counters, spent hens will also be processed once their egg laying productivity declines. Their meat, which can be tougher and stronger tasting, is used for processed products like soups, patties, nuggets, or deli meats.
More seriously, though, meat from spent fowl could pose a risk to someone with a severe allergy to eggs if it was improperly labelled.
Broiler meat entering Canada is subject to import controls and tariffs, but those limits don’t exist for spent fowl, resulting in a high potential for deception. And until recently, there hasn’t been a DNA test that could differentiate between the two.
It’s a problem believed to reduce the Canadian chicken industry’s contribution to the Canadian economy by an estimated $500 million annually in lost sales, jobs, and GDP contributions. Now there’s a potential solution thanks to a Canadian DNA-based analytical company called Sterisense.
Geoff Lumby is the owner and president of Sterisense.
Sterisense had already been working on DNA testing of products for grocery stores and restaurants when, in 2012, after meeting with Canadian meat processors, Lumby was asked if he thought a spent fowl test was possible.
He embarked on a successful partnership with researchers at the Natural Resources DNA Profiling and Forensics Centre (NRDPFC) at Trent University to do just that. And while the project is still being tested, the results are encouraging.
Chicken Farmers of Canada (CFC) and Canadian meat processors have been urging for years that the problem of mislabelled poultry meat should be addressed and are optimistic that this test could be the solution.
Lumby, Trent scientists, CFC and other industry representatives have met with federal government representatives to demonstrate their findings and are now working toward a deeper validation of the testing.
That will include working with legitimate American companies on blind samplings to ensure that the test accurately and reliably distinguishes between the two types of meat.
Yves Ruel is CFC’s Manager of Trade and Policy and says that the next challenge will be to determine how the testing is implemented.
“It’s a technology that both the industry and consumers are really interested in,” adds Lumby. “The tests will remove all risks of buying fraudulent product and give consumers added reassurance that what they’re paying for is what they’re getting.”
Water management is one of the most crucial components in a top-performing broiler flock. Broilers have advanced to grow faster, become larger with more breast meat, eat more feed at younger ages and be far more efficient than their predecessors, increasing their demand for water. The modern broiler house is also equipped with cooling equipment that utilizes large amounts of water during hot weather. All this has put more emphasis on the need for ample water supply and storage so birds can perform successfully. Chance Bryant focuses on water flow rates and water temperature – factors that sometimes get overlooked.
How much water does a broiler need? How much will a bird drink every day? These questions are often asked by producers and are very appropriate in achieving high performance, as water consumption and feed consumption are highly correlated (Table 1). In high performing flocks, at around 21 C, modern broilers on average will consume 1.8 to two times more water than feed, in weight. Consumption is dependent on house temperature. In hot climates, flocks can consume up to five times in weight the amount of feed they intake.
Water consumption will vary depending on environmental temperature, feed quality and bird health.
- Water consumption increases by six per cent for every increase in 1 C between 20-32 C.
- Water consumption increases by five per cent for every increase in 1 C between 32-38 C.
- Feed consumption decreases by 1.23 per cent for every increase in 1 C above 20 C
Any substantial change in water usage should be investigated as this may indicate a water leak, health challenge or feed issue. A drop in water consumption is often the first indicator of a flock problem.
To evaluate flock performance properly we need to know how much water birds are consuming every day. More advanced water meters record not only ‘daily’ consumption attainable, but enable an understanding of consumption at critical times of the day and critical times during the flock – both very relevant in assuring proper water intake.
These critical times can include feed changes, turning birds out from the brood area to three quarters or full house, transitioning from power ventilation to tunnel, field vaccinations, etc. If you monitor consumption during these periods, you can better understand if flocks are being properly managed.
WATER VOLUME AND ADEQUATE FLOW
Many of today’s high performance broilers are being raised in housing built for the broiler of the past. Unfortunately these houses are undersized, with inadequate plumbing and pipe sizing that struggles to keep up with the needs of modern high-performing and fast growth rate broilers. Worsening this situation can be the demand of cool cell systems, which often require twice as much water as the birds drink.
With an inadequate plumbing system or pipe sizing water may be diverted from drinkers to the cooling system which will restrict water supply to the birds and so lower feed consumption. Many broiler farms have multiple houses with large numbers of birds in each house. Often, the lights come on at the same time in every house and without adequate water volume and flow rates some houses can experience a shortage of water during these high peak periods.
All of these factors can decrease weight, increase FCR, create uniformity issues and place undue stress on birds, which can lead to an unhealthy flock.
There are many options used to ensure water volume/flow will meet bird needs at high peak demand times. Digital water meters connected to the house controller can monitor water consumption not only on a 24-hour basis but also in allotted time increments during the day.
This information can help determine if our water system is keeping up at critical ‘high demand’ times, as when the lights come on after a dark period. Knowing this can be very helpful in tracking down performance issues on a farm, especially one with big, multi-houses.
As well as water quality and availability, the temperature of the water that birds are drinking needs to be considered. During the first few days of brooding, consumption rates are low and the water flow through the system is minimal. In a modern broiler house with very efficient heating systems the water temperature can easily exceed 35 C.
This water temperature is not as palatable to chicks and can lead to low intake and poor performance. Excessively warm water can also contribute to increased bacterial growth within the drinker system which can lead to higher bacterial infection within the flock. The ideal water temperature should be around 10-14 C coming from the source.
Water consumed by the birds should never be allowed to increase above 30 C. If this occurs the drinking system should be flushed periodically to maintain cooler, fresher water.
Water is one of the crucial aspects of broiler flock management. Understanding and managing water in broilers — providing them with fresh, clean, ample water when they need it — will help to achieve success flock after flock.
November 20, 2015 - An egg by-product processor and a specialty breed poultry producer are amongst the recipients of this year's regional Premier Award for Agri-Food Innovation Excellence.
Perth County Ingredients converts the waste from egg processing (inedible egg material called slurry or spinnings) into powdered, high-protein ingredients for animal feed and pet food manufacturers. With federal and provincial assistance, an egg processing plant in Perth County was brought back to life and retrofitted to process the by-product. Equipped with high-tech dryers, a pressurized membrane system and modified centrifuge technology, the facility has brought much-needed jobs to the area and supports local egg and hatchery operations, creating value from what would otherwise be landfill. READ MORE
MEALsource, the only non-profit health care purchasing group in the province (perhaps even in the country) is working hard to get more Ontario-grown food into hospitals, long-term care and other health care facilities. The agency, based in Brantford, Ontario and part of the St. Joseph’s Health System, has an active and ongoing goal to educate processors – and everyone else in agriculture – about health care institution contracts and help bidders prepare for the Request for Proposals (RFP) process.
“There are always Ontario companies bidding for turkey contracts,” notes MEALsource contract specialist Wendy Smith. “And they are successful. The turkey folks have a good understanding of how we do business and they want a piece of it.” Smith notes that all the raw egg MEALsource contracts are currently served by Ontario companies and that there’s regular Ontario participation for cooked egg items.
However, Smith says “We are not getting nearly enough Ontario bids for raw and cooked chicken. There were no Ontario-based bids for this year’s chicken contracts at all. The only Ontario companies we have ever had bids from are Pinty’s and DND Poultry. So that means it’s coming from the U.S. or out of province, but mostly the U.S.” (See sidebar for details on 2015 poultry meat contracts. These contracts are for two years, so the next round of bidding will begin January 1st 2017. However, some fully-cooked entre contracts which include poultry meat will be up for bidding in 2016.)
MEALsource staff spend a lot of time making local connections at food shows and trade shows and giving presentations before the RFP process for a contract begins (once the RFP is posted, they can have contact with no one). “Typically a food broker or supplier will call us in, and we’ll present on the contract specifications, the reasons why they exists, the process we follow and more,” Smith says. “We’ve gone to Local Niagara, FoodShare, Greenbelt, anywhere we’re asked to go, we will go. We haven’t had any requests from a poultry company to give a presentation.”
THE WELCOME MAT
In addition to this ongoing work with industry and food groups, MEALsource has changed RFP’s to make the playing field more level. “It started in 2010 that food origin became a concern, a legitimate concern with regard to where tax dollars are going,” Smith explains. “We were invited to participate with the Greenbelt in a project to look at the origin of MEALsource contract food products in five categories: eggs, dairy, sliced whole meats and poultry (‘protein cooked’), cheese, and ‘other refrigerated products.’ We discovered a fair bit was local, but there could be a lot more.” Over the course of the 15-month project, $670 000 of contracts were moved to local companies through finding local vendors and inviting them to participate, equating to a 15 per cent local swing in all categories.
“In 2011, we changed the RFP so that food origin must be stated,” Smith adds, “and so that in the case of a tie, the contract goes to the local vendor. The Broader Public Sector (BPS) Procurement Directive [a provincial directive put in place around that time] also requires all BPS institutions and/or their representatives running a contract process to offer the option of a debrief for bidders, where they can get feedback on the process and find out why their bids failed.” Before and after bids, MEALsource educates as much as it can. “We can’t give anyone an edge, but we can educate,” says Smith. “The international firms are very savvy, with almost an assumption that they will be successful in all their bids. It’s great to see new faces bidding. We would be happy to talk to chicken processors.”
The Ontario Independent Meat Processors (OIMP) does not have an active relationship with MEALsource, says media relations lead Heather Mahachowitz, but supports more Ontario chicken going into Ontario health care institutions. “We communicate opportunities to our members if presented to us, and they will respond directly if interested,” she explains, clarifying that OIMP members are smaller independent operations. “We do not represent companies like Maple Leaf and Lilydale, who may have better resources to respond to RFP’s.” She adds that some MEALsource contract requirements may occlude OIMP members off the bat because of things like volume, delivery or HAACCP requirements. “That said, we would still like to share the opportunity and hopefully foster some connections between our members and MEALsource,” Mahachowitz notes. “[In addition], we would be happy to run/host an information session here at our Guelph office.” Smith says she is certain that MEALsource reps have met OIMP reps at many local food events over the past four years, and that she would be happy to meet with any and all interested vendors.
Mahachowitz asks whether some institutions will only purchase from federally-inspected plants, which puts provincially-licensed plants at a competitive disadvantage. The answer from Smith is no. She says MEALsource has looked into this, and that there are no issues with bids from provincially-inspected plants. “It is a common misperception though,” she notes, “and worth addressing.”
The Association of Ontario Chicken Processors (AOCP) does not get involved in the marketing and sale of chicken, says Mike Tertstra, AOCP Executive Director. “That function is left to each individual processor,” he explains, adding however that “AOCP members purchase approximately 95 per cent of the chicken grown by Ontario farmers and welcome opportunities to provide local chicken to Ontario consumers.” Tertstra did not say whether or not he had been in contact with MEALsource in the past when asked, but stated that “If you have information that I can give to members, I would be happy to do so.”
Overall, there could be many reasons why processors in Ontario aren’t bidding on MEALsource contracts for cooked and raw chicken. It could be that they are focused on other markets, don’t have the resources to look into this sales avenue, or don’t feel it would be worthwhile. Some may not have products that are suitable. If you’re a processor inside or outside Ontario with comments on the topic, please contact us. In addition, if there is a similar agency to MEALsource in another province, please let us know.
Other local food initiatives in Ontario
Turkey Farmers of Ontario (TFO) has worked with some healthcare facilities in the province by promoting the nutritional benefits of turkey and its versatility with a variety of turkey menu features being offered. “In addition to the menu items, says TFO General Manager Janet Schlitt, “past program activities have included posters, consumer contests, on-site staff to discuss the nutritional facts of turkey, and giveaways of promotional items and recipe booklets.”
Egg Farmers of Ontario reaches out to more than 1,100 food service operators annually through personal visits to independent restaurants, meetings at restaurant chain head offices, contact at trade shows and mailings. “EFO generated 85 customized egg promotions in 264 locations last year for food service operators,” says Public Affairs Manager Bill Mitchell. “Over 100 restaurants used our point-of-purchase materials, such as table cards, posters, balloons and buttons. EFO operates an online portal Egg Chef that provides enhancements to operators participating in EFO’s food service program, while reducing production costs of the program. Operators can use the password-protected site to create customizable menus and point-of-sale material to be printed and shipped directly to their restaurants.”
Chicken Famers of Ontario is focused on meeting all Ontario chicken markets, notes CFO Director of Communications and Government Relations Michael Edmonds. “CFO has developed and launched programs to encourage farmers and processors of all sizes to seek out and support currently underserved or emerging markets,” he adds. “CFO’s recently announced ‘Artisanal Chicken’ and ‘Local Niche Market Programs’ will supplement our traditional chicken and Specialty Breeds markets and will help provide additional opportunities for those looking to grow the Ontario market for locally-grown chicken.”
The Government of Canada has announced a series of new programs and initiatives for supply-managed producers and processors to support them throughout the implementation of the Trans-Pacific Partnership (TPP)
October 5, 2015 - The Government of Canada has announced a series of new programs and initiatives for supply-managed producers and processors to support them throughout the implementation of the Trans-Pacific Partnership (TPP) and the Canada-EU Trade Agreement. Under both agreements, the three pillars of the supply management system will remain protected.
The following programs will be implemented:
- The Income Guarantee Program will keep producers whole by providing 100 per cent income protection to producers for a full 10 years from the day TPP comes into force. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. $2.4 billion is available for this program.
- The Quota Value Guarantee Program will protect producers against reduction in quota value when the quota is sold following the implementation of TPP. $1.5 billion has been set aside for this demand-driven program, which will be in place for 10 years.
The Government also announced two additional programs:
- The $450 million-Processor Modernization Program will provide processors in the supply-managed value chain with support to further advance their competitiveness and growth.
- The Market Development Initiative will assist supply-managed groups in promoting and marketing their top-quality products. To support the initiative $15 million in new funding will be added to the AgriMarketing Program.
In addition to the long-term $4.3-billion investment outlined above, the Government will intensify on-going anti-circumvention measures that will enhance border controls. These measures include requiring certification for spent fowl, preventing importers from circumventing import quotas by adding sauce packets to chicken products, and excluding supply-managed products from the Government of Canada’s Duties Relief Program.
Cheese compositional standards, introduced by the Government of Canada in 2008, have been maintained. The Government remains committed to ensuring they are enforced, so the standards we have for Canadian cheese are fully maintained.
The Canadian Dairy Commission and the Farm Products Council of Canada will work with Agriculture and Agri-Food Canada to ensure the Income Guarantee and Quota Value Guarantee programs are delivered to producers in an effective and efficient manner. The Government will continue to work closely with dairy, poultry and egg producers and the entire supply-managed sector to implement these initiatives.
These Cabinet-approved initiatives will support producers and processors throughout the implementation period of TPP and the Canada-EU Trade Agreement.
The TPP will secure new market access opportunities for Canadian dairy, poultry and egg exports. Dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries. This will include complete tariff elimination on some specialty cheeses, including several artisanal cheeses, entering the United States.
Despite significant and broad demands from several of our TPP negotiating partners, Canada has offered only limited new access for supply-managed products. This access, which will be granted through quotas phased in over five years, amounts to a small fraction of Canada’s current annual production: 3.25 per cent for dairy (with a significant majority of the additional milk and butter being directed to value-added processing), 2.3 per cent for eggs, 2.1 per cent for chicken, 2 per cent for turkey and 1.5 per cent for broiler hatching eggs.
Programs for Canada’s dairy, poultry and egg farmers
The Government of Canada is providing new programs for dairy, chicken, turkey, egg and hatching egg producers as the implementation of the Trans-Pacific Partnership (TPP) and the Canada-European Union Trade Agreement proceeds. The Trans-Pacific Partnership will secure new market access opportunities for Canadian dairy, poultry and egg exports. Dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries.
The Income Guarantee Program and the Quota Value Guarantee Program have been approved by Cabinet and will be available the day the TPP comes into force.
Income Guarantee Program
What will it cover?
The Income Guarantee Program will keep producers whole by providing 100 per cent income protection to producers for 10 years. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. $2.4 billion is available for this program. Annual payments will be directly linked to the amount of quota a producer holds.
The Income Guarantee Program transfers with the sale of the quota, meaning that if the quota is sold at any point in the 15-year period, the remaining direct payments linked to that quota will transfer to the new quota holder.
What are the estimated payments producers will receive?
The following examples provide an estimate of the total compensation the typical producer may receive over the 15-year period. These amounts will vary by individual producer, depending on their level of production:
- A typical dairy farm could expect to receive approximately $165,600
- A typical chicken farm could expect to receive approximately $84,100
- A typical turkey farm could expect to receive approximately $88,000
- A typical egg farm could expect to receive approximately $71,500
- A typical hatching egg farm could expect to receive approximately $191,700
When will the program come into effect?
Annual payments will begin when TPP comes into force. There will be an application process designed to limit the administrative burden on producers which will be developed in consultation with the Canadian Dairy Commission and the Farm Products Council of Canada.
How are the income guarantee payments calculated?
The income guarantee payments will be calculated based on expected domestic production levels under conditions with TPP and the Canada-EU Trade Agreement in place. A model will be used that takes into account detailed historic economic and farm level data, projected into the future.
Quota Value Guarantee Program
What will it cover?
The Quota Value Guarantee Program will protect producers against reduction in quota valuewhen the quota is sold following the implementation of TPP, and $1.5 billion has been set aside for this demand-driven program that will be in place for 10 years.
When will the program come into effect?
The Quota Value Guarantee will come into effect once TPP comes into force.
How will quota value be calculated?
Agriculture and Agri-Food Canada along with the Canadian Dairy Commission and the Farm Products Council of Canada will work with industry to develop the appropriate mechanism to operationalize the Quota Value Guarantee Program.
Programs for Canada’s dairy, poultry and egg processors and industry
The Processor Modernization Program and Market Development Initiative will be available for agri-food processors in the supply-managed sectors. These programs have been approved by Cabinet and will be phased in starting fiscal year 2015/16.
Processor Modernization Program
The seven-year $450-million Processor Modernization Program will provide processors with support to increase competitiveness through capital investments and technical and management capacity.
Who is eligible?
- For-profit agri-food cooperatives and processors in the supply-managed sectors (dairy, poultry and egg), including small and medium-sized enterprises (SMEs)
What activities are eligible?
- Purchase and installation of new equipment
- Construction, renovation and expansion of facilities
- Hiring of required expertise to complete the project
- Development of new products/product lines
- Improvement of manufacturing processes
- Collaborative partnerships for research
What is the application process?
There will be a two-step application process:
- A letter of intent with screening form
- If eligible, a full application to follow
Assessment will be based on merit, feasibility and quality of business plan. Funding for activities will begin in advance of the implementation of TPP.
Market Development Initiative
The Market Development Initiative provides new funding over five years to the AgriMarketing Program to help the supply-managed sector to maintain, develop and expand their Canadian and international market share. The Initiative will add $15 million of new funding to the AgriMarketing Program.
Who is eligible?
- Not-for-profit organizations working on behalf of supply-managed producers and processors
- Small and medium-sized enterprises in the supply-managed sector
What activities are eligible?
- Additional promotional campaigns and activities that position and differentiate Canadian supply-managed products
- Marketing materials, events (e.g., attendance at trade shows) and research that supports the sale of Canadian supply-managed products
What is the application process?
- An initial round of applications will be solicited prior to the implementation of the TPP and the Canada-EU Trade Agreement.
- Applications will be reviewed and awarded on a competitive/merit basis
- Eligible activities will be cost-shared on a 50/50 basis with industry
May 29, 2015 - Aviagen announced it has purchased the Morris Northstar Hatchery, in Watertown, New York. The purchase of the Morris broiler hatchery makes this the 7th commercial breeding stock hatchery for Aviagen in the US.
The Aviagen Watertown Hatchery in upstate New York lies approximately 31 miles (50 km) south of the Ontario border making it the company’s closest hatchery that will be able to serve Canadian customers.
“As demand for Aviagen breeding stock continues to grow around the world, we are always looking for ways to efficiently and effectively meet that demand,” said Kevin McDaniel, president, Aviagen North America. “With the Aviagen Watertown Hatchery, we can better serve Canadian customers and the close proximity to JFK airport makes it a logical location for exporting to other parts of the world as well.”
Aviagen plans to renovate the Watertown hatchery and equip it with the latest Jamesway Platinum Incubation Equipment. The hatchery is scheduled to come online in the first quarter of 2016 with a capacity of up to 530,000 eggs set per week. The hatchery is anticipated to employ up to 40 people.
November 20, 2014 - Chicken Farmers of Canada has announced the signing of a new allocation agreement that will see 55 per cent of future growth allocated based on provincial comparative advantage factors.
This landmark agreement has been over six years in the making. Challenges, starts & stops, and roadblocks were ever present but, at the end of the day, have been overcome through this new agreement. Negotiations were most intense from 2012 through 2014.
"The challenges over the years have been many, and have required the whole industry to pull together as a team to overcome the differences, realize the important similarities – our shared vision – and then move forward to completing this agreement," said Dave Janzen, Chair of Chicken Farmers of Canada. "This is great news for farmers, and indeed for the whole Canadian chicken industry as it shows, yet again, that supply management continues to evolve to changes in the marketplace."
"I am proud of us all for the efforts that have been made to ratify this new allocation agreement, and to modernize the allocation process for the coming years," said Janzen. "You have shown tenacity and perseverance in making these changes to show that supply management is indeed a modern, evolving system."
Differential growth has been a critical priority for Chicken Farmers of Canada for some time and its completion is consistent with the organization's 5-year strategic plan which calls for efforts to improve the efficiency of the value chain, while maintaining production in all provinces. Under the new agreement, all provinces will share in future growth.
The new memorandum of understanding covers the future growth and allocation process by factoring in 55 per cent of future production based on comparative advantage factors. Alberta, which had withdrawn from the federal provincial agreement last year, was the first to sign the new agreement and is launching their process at the provincial level to formally rejoin the national agency.
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Ontario Poultry Breeders Sat Oct 21, 2017 @ 8:00AM - 05:00PM
Poultry Welfare Auditor Course (PAACO)Tue Oct 31, 2017 @ 8:00AM - 05:00PM
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