Overview
The Chicken Farmers of Canada (CFC) is the National Agency responsible for the orderly production and marketing of chicken and chicken meat in Canada. CFC was established in 1978, pursuant to subsection 16(1) of the Farm Products Marketing Agencies Act (legally known as the Farm Products Agencies Act (FPAA) since 1993) and a federal-provincial agreement between the federal agriculture minister, provincial agriculture ministers (in Alberta and Quebec, the Ministers of Intergovernmental Affairs are also signatories), provincial supervisory boards, chicken producers in member provinces, and CFC.
CFC Board of Directors and Structure
CFC has nine provincial members: British Columbia, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. The province of Alberta withdrew from the Agency on December 31, 2013. Each member province elects a representative to the Agency’s Board of Directors. The Chicken Farmers of Canada Proclamation was amended by the Federal Government in 1996 to allow for four representatives from chicken industry stakeholders: two named by the Canadian Poultry and Egg Processors Council representing primary processors; one named by the Further Poultry Processors Association of Canada representing companies which use chicken as an ingredient in their products; and one named by Restaurants Canada representing the restaurants and foodservice sectors, for a total of 14 directors, including the Chair who is elected among CFC’s membership.
CFC’s Role, Responsibilities and Objects
CFC’s objects are listed in section 21 of the FPAA:
- to promote a strong, efficient and competitive production and marketing industry for the regulated product or products in relation to which it may exercise its powers; and
- to have due regard to the interests of producers and consumers of the regulated product or products.
CFC’s Board of Directors meets every six weeks to set chicken allocation as well as to plan and manage chicken production and marketing. This mainly involves setting production quota, and setting an annual levy to defray the administrative, marketing, and other costs and expenses deemed essential by the Agency for the realization of its objects. This levy is included in the price that consumers pay for chicken.
Quota Allocation
Quota allocation (the regulation is called Canadian Chicken Marketing Quota Regulations) covers production over a rolling eight-week period. The eight-week period is used so the Agency may increase or decrease allocation quickly in response to market factors. CFC administers three quota allocations:
- Domestic allocation: Chicken allocated under the domestic allocation is to be produced for the domestic chicken market, and is processed either as whole birds or in parts, or further processed whose meat is used as an ingredient in other products.
- Market development allocation: The Canadian chicken demand leans towards white meat consumption. The market development allocation aims to encourage an expanded use of Canadian chicken and chicken products while balancing the domestic consumption between white and dark meat. The market development production is performed on a voluntary basis by the producers in addition to their domestic allocation.
- Specialty production allocation: The purpose is to facilitate the planned production and marketing of specialty breeds of chicken which do not directly compete with mainstream chicken production and marketing.
Levies Order
CFC’s levies order (the Canadian Chicken Marketing Levies Order) is expressed in cents per kilogram of live weight and is set during the Agency’s November meeting and is derived out of the annual budget for the upcoming year.
Amendments to Regulations and Orders
Both quota regulations and levies order amendments need to be approved by Council members before they can be put into effect by CFC. Prior to Council members’ review, the proposed amendments must be examined by Justice Canada to ensure that CFC has the authority via the FPAA and the Agency’s Proclamation to undertake the amendments.
The amendments are then scrutinized by FPCC staff to assess the potential impact on the market for chicken meat in Canada. Council members review the amendments and the briefing material prepared by FPCC staff as well as any relevant documents sent by CFC. Using this information as well as their own knowledge and expertise, Council members either approve or decline the amendments. Council members must be satisfied that in approving CFC’s order or regulation amendment, it is both in accordance with, and necessary for the implementation of CFC’s marketing plan as outlined in the Agency’s Proclamation. FPCC informs CFC through a transmittal letter of the decision and the rationale behind the decision taken. FPCC’s decision letters are available on its Website at http://www.fpcc-cpac.gc.ca/index.php/en-GB/complaints/decisions-and-documents.
Audit Report
As part of their obligations and in order to meet the requirement of section 29 of the FPAA, the financial transactions of CFC must be audited by an independent auditor appointed by the Governor in Council. The report of each audit must be made to CFC, FPCC and the Minister of Agriculture and Agri-Food Canada (Minister).
Annual Report
The annual report, as per section 30 of the FPAA, must be submitted to FPCC and the Minister within three months of the end of each fiscal year. The Minister has the power to direct CFC to report on its activities in a form and manner the Minister so decides. CFC’s annual report is then laid before the Parliament of Canada within fifteen days after receipt by the Minister or, if Parliament is not sitting, on any of the first fifteen days when Parliament resumes.
Further Information
For additional information on CFC and its activities, please go to: http://www.chicken.ca/
