What We Do

CFO is active on many fronts, but has two main responsibilities. The first is to ensure that Ontario chicken farmers grow the amount of chicken required by the market. The volume to be produced is determined through a consultative process with chicken industry stakeholders. To do this, CFO meets with organizations that represent all sectors of the Ontario chicken industry on a regular basis, from the primary processors to restaurants and supermarkets. The information acquired at these all-industry stakeholder meetings plays an essential role in CFO's determination of how much chicken will be grown in Ontario.

CFO's other main responsibility is to negotiate with licenced Ontario Chicken Processors (AOCP), prices to be paid to all Ontario chicken farmers by all Ontario chicken processors. CFO's authority to regulate the amount of chicken grown and negotiate the price is derived from provincial legislation called the Farm Products Marketing Act. Similar legislation exists in all of Canada's ten provinces.

The price that processors pay to farmers is based on a “live price formula”.  The formula is made up of three components: producer margin, feed cost and chick cost.  The live price is reviewed and adjusted every 8 weeks.  Adjustments to the formula are agreed to by the CFO Board
and processors.