June 19, 2020 Weekly Newsletter
Message from the Chair of the British Columbia Chicken Marketing Board
From the desk of Harvey Sasaki
Pricing Update

It has been just over a year since the Board received the BC Farm Industry Review Board’s decision to dismiss the pricing appeals filed by the growers and processors associations. The FIRB decision included direction to the Board to have a long-term pricing formula in place by A-161 (February 2020). The Board had established a Pricing Working Group that included representatives of the growers and processors to make recommendations on a new long term pricing agreement. The progress of the Working Group was interrupted by the FIRB Price Linkage Supervisory Review announced on March 17, 2020 and the need to place priority on managing the industry responses to the COVID-19 pandemic.

The Price Linkage Supervisory Review is examining the need to ensure interim pricing stability while the Review Panel addresses the Price Linkage and the timing for a new long term pricing formula. The Board working with the Hatching Egg Commission provided input to the Review Panel and have been given the opportunity to provide additional input prior to June 26, 2020 on interim pricing and industry stability.

The Board has determined that the resumption of the Pricing Working Group will not achieve the desired outcome that was originally set and is embarking on a process to define “reasonable return to growers” and “processor competitiveness”. The first phase is being conducted by Hugh Scorah as an independent economist who has been retained by the Board to collect and analyze production and cost data to assist in defining reasonable return to growers. In the initial phase, Interior and Island growers have been requested to provide data. An assessment as to the timing for making a similar request to Lower Mainland growers will be made in due course.  We appreciate the support of Interior and Island growers by providing Hugh with the data and information needed that will be of great assistance in Board decision making on the long term pricing formula.

We will keep you posted on the process as we move forward in establishing a long term pricing formula.

Message from BC's Chicken Farmers of Canada Director

From the Desk of Derek Janzen
This week CFC set the allocation for A-165 at -2% below the adjusted base nationally. Setting the allocation was delayed in order to gather as much information as possible given the fast moving pace of COVID 19.
The decision was not unanimous with some provinces and industry partners feeling the cut was not enough and others that it was too much.
Provinces are moving through the recovery stages at varying degrees. Here in BC under the guidance of our Provincial Health Authority we have begun to open up and we now see more restaurants opening and that definitely propels the sale of chicken.
Retail sales continue to be strong with retailers regularly featuring chicken. Rising beef prices will also make chicken a more attractive choice for the consumer.
In closing I am pleased that allocations are getting closer to base and look forward to chicken returning to a growth mode.

Derek Janzen
BCCMB CFC Director and First Vice Chair, Chicken Farmers of Canada
From Our Executive Director
From the Desk of Bill Vanderspek
Allocation for Period A-165
The national allocation for period A-165 (marketing’s from August 30 to October 25, 2020) was set by the CFC directors by conference call on June 17, 2020 at 2% below base. BC's share of the A-165 allocation (in kilograms live weight) is as follows:
Domestic: 34,401,200 kg
Market Development: 1,824,165 kg
Specialty: 1,195,790 kg.
Allotments for BC growers for period A-165 will be at 96.9% pro rata.
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