O. Reg. 6/15: CHICKENS - MARKETING

Link to law: http://www.ontario.ca/laws/regulation/r15006
Published: 2015-01-14

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ontario regulation 6/15

made under the

Farm Products Marketing Act

Made: January 8, 2015
Filed: January 14, 2015
Published on e-Laws: January 14, 2015
Printed in The Ontario Gazette: January 31, 2015


Amending Reg. 402 of R.R.O. 1990

(CHICKENS - MARKETING)

1. (1) Subsection 18 (1) of Regulation 402 of the Revised Regulations of Ontario, 1990 is revoked and the following substituted:

(1) Subject to subsections (6) and (7), the negotiating agency may adopt or settle by agreement the minimum live prices for chickens or for any class, variety, grade or size of chickens in accordance with this section.

(1.1) In this section,

“chick” means a chicken that is less than seven days of age; (“poussin”)

“feed” means broiler chicken feed; (“nourriture”)

“quota period” means a quota period established by the local board for the purposes of sections 10 and 11. (“exercice contingentaire”)

(2)  Subsections 18 (2) to (5.1) of the Regulation are revoked and the following substituted:

(2) Beginning with quota period A129 in 2015, the negotiating agency shall negotiate the minimum live prices for chickens by applying the following formula and negotiating adjustments to the various components of the formula in accordance with subsections (3), (4), (5), (5.2) and (5.3):

MLP = (CP + FP + PM) − AA

Where,

MLP means the minimum live price for chickens;

CP means the live chick price for sexed mixed chicks established by the Ontario Broiler Hatching Egg and Chick Commission for each quota period, expressed in dollars per kilogram of live chicken, and adjusted as necessary by the negotiating agency each quota period;

FP means the weighted average feed price derived from at least three independent Ontario feed mills with the largest volume of sales of chicken broiler feed that is reported by the Ontario Agri Business Association for each quota period, expressed in dollars per kilogram of live chicken, and adjusted as necessary by the negotiating agency each quota period;

PM means the producer margin, being the sum of the costs and expenses described in Column 2 of Table 1 of this section, as those costs and expenses are valued by the negotiating agency annually under subsection (4); and

AA means the three annual adjustments described in Schedule 1.

(3) The negotiating agency shall negotiate the chick price and feed price each quota period.

(4) Each year, the negotiating agency shall negotiate the value of each of the costs and expenses described in Column 2 of Table 1 of this section, other than the costs and expenses referred to in items 9, 10 and 11 of the Table that have a fixed value set out in Column 3 of the Table, and the renegotiated values shall take effect at the beginning of the first full quota period of the year.

(5) Despite subsection (4), the values of any costs and expenses that are to be negotiated annually under that subsection may be negotiated more frequently than annually if exceptional and unforeseen circumstances exist.

(5.1) If the values of any costs and expenses are negotiated more frequently than annually in accordance with subsection (5), the renegotiated values shall take effect at the beginning of the quota period that follows the conclusion of the negotiations and shall remain in effect until the beginning of the first full quota period of the following calendar year.

(5.2) The three annual adjustments described in Schedule 1 shall be agreed to by the negotiating agency each year and shall take effect at the beginning of the first full quota period of the year.

(5.3) Despite subsections (2) to (5.2), the negotiating agency shall negotiate the minimum live prices for chickens for quota period A129 by applying the formula set out in subsection (2), subject to the following rules:

1. The chick price shall be determined by using the amount of $0.3275 as the chick price for quota period A121 and negotiating adjustments to that amount to reflect the changes from quota period A121 to quota period A129.

2. The feed price shall be determined by using the amount of $0.7094 as the feed price for quota period A121 and negotiating adjustments to that amount to reflect the changes from quota period A121 to quota period A129.

3. The producer margin shall be determined by using the sum of the values set out in Column 3 of Table 1 of this section as the producer margin for quota period A121 and negotiating adjustments to those values, other than the values set out in items 9, 10 and 11 of Column 3 of the Table that are fixed values, to reflect the changes from quota period A121 to quota period A129.

4. The negotiating agency shall determine the volume adjustment for quota period A129, in the following manner:

i. Determine the volume adjustment for quota period A129 in accordance with paragraphs 1, 2 and 3 of section 1 of Schedule 1.

ii. Determine the volume adjustment for quota period A122 in accordance with paragraphs 1, 2 and 3 of section 1 of Schedule 1, using the values set out in Column 3 of Table 1 of this section for the purposes of the multiplication required under paragraph 3 of section 1 of Schedule 1.

iii. Determine the sum of the amounts determined under subparagraphs i and ii.

5. The negotiating agency shall determine the feed efficiency adjustment for quota period A129 in the following manner:

i. Determine the average of the feed prices, expressed in dollars per tonne, that were used to determine the minimum live prices for chickens during the previous 12-month period and multiply that average feed price by 0.000014.

ii. Determine the average of the feed prices, expressed in dollars per tonne, that were used to determine the minimum live prices for chickens during the 12-month period that preceded the 12-month period referred to in subparagraph i and multiply that average feed price by 0.000014.

iii. Determine the sum of the amounts determined under subparagraphs i and ii.

(3) Subsection 18 (6) of the Regulation is amended by striking out “the Canadian Restaurants and Foodservices Association” and substituting “Restaurants Canada”.

(4) Subsection 18 (7) of the Regulation is amended by striking out “the Canadian Restaurants and Foodservices Association” and substituting “Restaurants Canada”.

(5) Section 18 of the Regulation is amended by adding the following Table:

Table 1
Costs and expenses included in Producer Margin


Column 1
Item


Column 2
Costs and Expenses


Column 3
Value of Costs and Expenses as of Quota Period A121 (expressed in dollars per kilogram of live chicken)




1.


Energy


0.0517




2.


Repairs and Maintenance


0.0228




3.


Property Taxes and Insurance


0.0122




4.


Office and Overhead


0.0255




5.


Contract Services


0.0815




6.


Labour - General Management


0.1325




7.


Return on Capital


0.0713




8.


Working Capital Interest


0.0012




9.


Farm Vehicle


0.0080




10.


Levies and licence fees


0.0204




11.


Depreciation of assets


0.0694




2. (1) Subsection 19 (1) of the Regulation is amended by striking out “subsection 18 (2), (3) or (4)” and substituting “subsection 18 (3), (4), (5), (5.2) or (5.3)”.

(2) Clause 19 (2) (a) of the Regulation is amended by striking out “subsection 18 (2)” and substituting “subsection 18 (3) or (5.3)”.

(3) Clauses 19 (2) (b) and (c) of the Regulation are revoked and the following substituted:

(b) in the case of a negotiation under subsection 18 (4) or (5.2), the day that is seven weeks before the beginning of the first full quota period in the calendar year; or

(c) in the case of a negotiation under subsection 18 (5), the day that is seven weeks before the beginning of the next quota period.

(4) Subsection 19 (3) of the Regulation is amended by striking out “subsection 18 (2), (3) or (4)” and substituting “subsection 18 (3), (4), (5), (5.2) or (5.3)”.

(5) Clause 19 (5) (a) of the Regulation is amended by striking out “subsection 18 (2)” and substituting “subsection 18 (3) or (5.3)”.

(6) Clauses 19 (5) (b) and (c) of the Regulation are revoked and the following substituted:

(b) in the case of an arbitration relating to a negotiation under subsection 18 (4) or (5.2), at least six weeks before the beginning of the first full quota period in the calendar year; or

(c) in the case of an arbitration relating to a negotiation under subsection 18 (5), at least six weeks before the beginning of the next quota period.

(7) Clause 19 (8) (a) of the Regulation is amended by striking out “subsection 18 (2)” and substituting “subsection 18 (3) or (5.3)”.

(8) Clauses 19 (8) (b) and (c) of the Regulation are revoked and the following substituted:

(b) in the case of an arbitration relating to a negotiation under subsection 18 (4) or (5.2), the day that is two weeks before the beginning of the first full quota period in the calendar year; or

(c) in the case of an arbitration relating to a negotiation under subsection 18 (5), the day that is two weeks before the beginning of the next quota period.

(9) Subsection 19 (10) of the Regulation is revoked and the following substituted:

(10) In an award or agreement made under this section in relation to a negotiation under subsection 18 (5), any revised or renegotiated producer margin shall take effect at the beginning of the quota period that follows the conclusion of the negotiations and shall remain in effect until the first full quota period of the following calendar year.

(10) Subsection 19 (11) of the Regulation is amended by striking out “in the Schedule” at the end and substituting “set out in subsection 18 (2)”.

3. The Schedule to the Regulation is revoked and the following substituted:

Schedule 1
Annual adjustments
to the minimum Live Price for chickens

1. A volume adjustment to reflect the annual changes in the authorized volume of domestic production of chicken allocated to Ontario by Chicken Farmers of Canada shall be determined in the following manner:

1. Determine the percentage change in the authorized volume of domestic production of chicken allocated to Ontario between the two previous 12-month periods.

2. Reduce the percentage determined under paragraph 1 by half.

3. Multiply the percentage determined under paragraph 2 by the sum of current value of the costs and expenses set out in Column 2 of Table 1 of section 18, other than items 8 and 10 of the Table.

4. Add the amount of the volume adjustment of the previous year to the amount determined under paragraph 3.

2. A feed efficiency adjustment, to reflect ongoing improvements in the amount of feed it takes to produce one kilogram of live chicken, shall be determined in the following manner:

1. Determine the average of the feed prices, expressed in dollars per tonne, that were used to determine the minimum live prices for chickens during the previous 12-month period.

2. Multiply the average feed price determined under paragraph 1 by 0.000014.

3. Add the amount of the feed efficiency adjustment of the previous year to the amount determined under paragraph 2.

3. A producer efficiency adjustment to reflect the exclusion of high costs of production, as follows:

1. In 2015, the efficiency adjustment shall be $0.0070.

2. In 2016, the efficiency adjustment shall be $0.0139.

3. In 2017, the efficiency adjustment shall be $0.0208.

4. In 2018 and in every subsequent year, the efficiency adjustment shall be $0.0277.

Commencement

4. This Regulation comes into force on the day it is filed.

Made by:
Pris par :

Ontario Farm Products Marketing Commission:
La Commission de commercialisation des produits agricoles de l’Ontario :

Geri Kamenz

Chair

Mike Relf

Secretary to the Commission

Date made:January 8, 2015.
Pris le : 8 janvier 2015.

 

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