As a result of differences in market demands between the western provinces and the rest of Canada due to COVID-19, the CFC directors agreed to regional allocations in A-163 and A-164. The western provinces received 7.5% and 5.1% higher allocations, respectively in periods A-163 and A-164. In order to maintain equity and balance across all Canadian provinces, the CFC directors have approved a formula that will in effect repatriate missed production to Central and Atlantic chicken growers as follows:

Framework for periods A-163 and A-164 regional allocation kilogram recovery process:

• The recovery kilograms for periods A-163 and A-164 will be pooled together for a total of 5,309,340 kg eviscerated.

• Recovery will begin once markets have stabilized, and it will begin after two consecutive periods with national allocations set at 1% or higher above base allocation.

• Recovery will take place over a minimum of twelve allocation periods, not necessarily consecutive, to minimize the impact on all provinces as much as possible.

• Recovery over the minimum twelve allocation periods will only occur in periods when national allocation is set at 1% or higher above the base allocation.

• Recovery will take place in a minimum of twelve equal periodic amounts but will not result in any of the provinces’ allocations that have to return kilograms to Central and Eastern provinces to go below 0.5% of its base; if the recovery amount is less than the calculated periodic amount, the periodic amount for the following periods will be adjusted accordingly and/or the number of recovery periods will be extended.

• Recovery kilograms will be applied after all other components of the allocation formula have been applied.

• Recovery kilograms will be excluded from the initial base allocation calculations. When calculating the initial base allocations for periods A-169 and A-170, provincial domestic allocations for period A-163 and A-164 will be deemed to have been set at base to avoid unintended consequences on future base allocations and market shares. When calculating the initial base allocations for periods beyond A-170, the domestic allocations used in calculating the initial bases for future periods will be adjusted for recovery kilograms to avoid unintended consequences on future base allocations and market shares.

• Recovery kilograms will be excluded from the Atlantic Canada Safeguard Agreement eligibility calculations.

Note: As A-167 was set at .5% above base, the earliest period that the recovery process could begin would be A-170, but only if A-168 AND A-169 are set at a minimum of 1% above base nationally.

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