Ontario chicken farmers have become equal partners in what is now the most dynamic and fastest growing sector of the Canadian food industry. Chicken farmers operate in a supply management or “orderly marketing” quota system. Listed below are some of the more commonly asked questions about chicken quotas.

What is Quota?

Quota can best be described as a license granted by CFO that allows the person to whom the license is registered to produce and market chicken in Ontario. CFO does not buy, sell or issue any new quota. It only grants licenses to recognize ownership transfers once transactions have occurred between buyers and sellers.

Who Can Produce and Market Chicken in Ontario?

CFO's regulations require that all chicken be produced and marketed in Ontario on a quota basis. However, the production of chicken on a person's own farm for consumption by that person's family is exempted. This is usually referred to as the "home consumption" exemption.

How do you get Quota?

Quota is fixed and allotted by CFO to persons who are the beneficial owners of the farm to which quota is fixed and allotted. Again, CFO does not issue any new quota. However, it does allow farmers to transfer quota. They can apply to have quota transferred to another person who, for example, purchases their registered premises and quota. Or, they may apply to have part of their quota transferred to another person who owns a farm elsewhere. The other person must be able to provide facilities suitable for chicken production.

How Much Does Quota Cost?

Because CFO does not buy or sell quota or become involved in the financial transactions between sellers and buyers, cost is determined by these sellers and buyers and can change over time. We have heard that a unit of quota sells at about $57-58 at this time (March 2006).  For more information on Ontario chicken quota values, please contact Frank Fortuna at CFO by emailing frank.fortuna@cfo.on.ca or calling 289-288-4245.

CFO, Quota and Prices

Chicken Farmers of Ontario works very closely with chicken processing companies to ensure that the food industry in Ontario is supplied with the amount of chicken the market requires. CFO strongly believes that being responsive to chicken market needs is essential to the well-being of supply management in chicken production.

The price per kilo paid to a chicken farmer is established via a “live price formula”.  The formula is made up of three components: producer margin, feed cost and chick cost.  The live price is adjusted every quota period (a period of 8 weeks) for changes in feed and chick costs.  The producer margin portion of the live price is re-negotiated once every six quota periods and, if agreement cannot be reached, the issue goes to final
offer arbitration.