CFC signs new "landmark" allocation agreement

Chicken Farmers of Canada
Thursday, 20 November 2014
By Chicken Farmers of Canada


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 Alberta, which had withdrawn from the federal provincial agreement last year, was the first to sign the new agreement and is launching their process at the provincial level to formally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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