Second wave of COVID-19 pandemic challenges chicken market, CFO board leads forward

BURLINGTON— Due to the uncertainties posed by the COVID-19 pandemic, and resultant impacts on labour absenteeism in processing plants and chicken markets, the Chicken Farmers of Ontario (CFO) board of directors has re-evaluated the Ontario A-168 allocation which was originally set at -2.5 per cent below the adjusted base at the Chicken Farmers of Canada (CFC) meeting on Dec. 2, 2020.

As a direct result of the pandemic, the CFC board further reduced the national allocation from -2.5 per cent below the adjusted base to -3.5 per cent below the adjusted base on Wed., Jan. 6.

Today, CFO is announcing that after careful and quantitative analysis, the Ontario A-168 allocation will be reset at -8 per cent below the adjusted base for A-168 domestic allocation.

The national allocation for A-168 set at the Chicken Farmers of Canada (CFC) meeting on Jan. 6 remains unchanged at this time. CFO continues to be very supportive of the national system.

CFO has made the decision to re-evaluate the Ontario A-168 allocation based on the unique and integrated needs of the Ontario chicken industry value chain and the board’s commitment to proactively respond to changing labour and market conditions.

Second wave’s impact on the chicken sector in Ontario

The second wave is significantly impacting the availability of labour in many sectors.

Ontario chicken processors have informed CFO that some Ontario processing plants are experiencing increasing labour absentee rates – which is adversely impacting plant capacity.

In addition, the expanding stay-at-home orders have impacted the demand for chicken consumed outside of the home. Chicken consumption in the food service sector has temporarily declined.

CFO has worked closely with the Ontario supply chain to assess the evolving challenges and to find mitigating solutions. 

The board will continue to monitor the situation closely to ensure that the supply management system responds to challenges and responsibly meets Ontario’s needs.

The CFO board is working toward delivering A-168 Schedule 1s to CFO farmer-members today.

Ontario processors can expect to receive their Processor Allocation ASAP.

As things continue to quickly change, the CFO board looks forward to sharing with stakeholders how they are continuing to lead and safeguard the chicken industry from the perils of COVID-19.