Ontario chicken farmers collaborate to reset farm-gate minimum live price
By Canadian Poultry magazineNews Marketing Boards
CFO secures fair compensation for farmers in landmark negotiation.
In a dedicated effort to ensure fair compensation for farmers and to secure the future of chicken farming in Ontario, the Chicken Farmers of Ontario (CFO) has successfully negotiated adjustments to the Farm-Gate Minimum Live Price (FGMLP) through collaborative efforts with the Association of Ontario Chicken Processors (AOCP).
Starting in 2022 and spanning throughout 2023, a specialized Negotiating Agency, comprising members from CFO and AOCP, worked diligently to reset and adjust the FGMLP. The focus of this negotiation was on the Cost of Production Formula (COPF), particularly the Producer Margin, which plays a crucial role in determining the live price paid to farmers.
To ensure accuracy and relevance, the CFO Board’s Pricing Working Group engaged farmers in extensive data collection efforts on Operational and Capital Costs. The goal was to reset the base values in the COPF for Operating and Capital Costs, aiming to provide farmers with fair compensation reflective of their costs and ensuring a sustainable return on investment.
The CFO Board of Directors expressed sincere gratitude to all farmers who actively participated in this crucial data collection process, emphasizing the significance of their input in shaping the future of the industry.
As a result of these collaborative efforts, the following changes to the Producer Margin will take effect in quota period A-187:
- Labour: Increase of $0.0157/kg
- Capital Costs: Increase of $0.0445/kg
- Operating Costs: Increase of $0.0132/kg
The Ontario Farm Products Marketing Commission (OFPMC) is set to implement the adjusted FGMLP for the weight category of 2.15 kg to 2.45 kg, effective for quota period A-187. This updated FGMLP will incorporate the adjusted Producer Margin components, as well as the Feed Cost & Chick Cost components of the COPF.
The calculation methodology for Feed Cost & Chick Cost components will be outlined in the A-187 pricing order, reflecting the ongoing commitment to transparency and fairness. These components, accounting for the cost of inputs, may change on a quota period basis.
More information on the FGMLP will be accessible through the Farmer Dashboard once OFPMC brings the pricing order for quota period A-187 into force in the coming weeks.
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