2020 Chicken Sector Pricing Supervisory Review

BCFIRB is undertaking a supervisory review (Review) of pricing within B.C.'s chicken and broiler hatching egg sectors.

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Pricing Uncertainty

In BCFIRB’s view, pricing uncertainty in the hatching egg and chicken sectors is negatively affecting the chicken supply chain (hatching egg producers, hatcheries, chicken growers, and processors). Pricing uncertainty for an indefinite period of time is not sound marketing policy nor is it sustainable. This uncertainty will continue until the Commission and Chicken Board find long-term solutions on pricing.

BCFIRB’s first priority is to determine if interim measures need to be put in place pending resolution of the hatching egg linkage exit notice and a long-term live chicken price formula.

Until such time that the price linkage and chicken pricing formula questions are resolved, the BC Chicken Marketing Board (Chicken Board) and the BC Broiler Hatching Egg Commission (Commission) are expected to use consistent and transparent processes to manage any changes to the respective pricing tools.

The Review process and issues may evolve dependent on COVID-19 sector impacts.

 

Review Process

The Review process may be adjusted as necessary to ensure a fair process, stakeholder engagement and collection of the information necessary for decision-making. Any changes will be recorded on this web page.

Panel meetings with the Commission and Chicken Board jointly and separately.

Purpose: to build on the panel’s initial understanding of the pricing work done to date by the respective boards as well as any future timelines and plans, and to explore potential interim pricing measures necessary for stability.

A joint meeting was held between the BCFIRB Panel and the Chicken Board and Commission on April 30, 2020.

 

Step 2: Address interim pricing and initiate discussion on long-term pricing - [Completed]

Panel meetings held with the BC Broiler Hatching Egg Producers Association (BCBHEPA); the BC Chicken Growers Association (BCCGA), the BC Primary Poultry Processors Association (PPPABC) and the BC Hatchery Association (BCHA).

Purpose: to inform the panel if it needs to take any steps to ensure stable industry pricing until the longer-term issues around the linkage and the chicken price formula are resolved and to initiate discussion on long-term pricing.

Written submissions were requested from BCCGA, PPPABC, BCEHA, BCBHEPA, the Commission and the Chicken Board on industry stability and interim pricing.

Review process established following consultation with the Chicken Board, Commission and stakeholders. A BCFIRB third party project liaison appointed to assist with the process.

A Terms of Reference, defining the specific purpose and structure of the Review was developed by the Chicken Board and Commission. It was finalized by BCFIRB on October 28, 2020 following stakeholder input.

Based on the Terms of Reference and supported by the BCFIRB liaison, the Chicken Board and Commission are developing respective long-term pricing structure recommendations. The recommendations will be submitted to BCFIRB.

See the joint Commission and Chicken Board Pricing Review web page for more information on the timeline, steps and how to engage: bcchickensectorpricingreview.com

Once BCFIRB receives the Chicken Board and Commission long-term pricing recommendations it will determine what, if any, further process is required before making a decision.

Background

The Broiler Hatching Egg Commission (Commission) has the authority to set the price hatching egg producers are paid by hatcheries for their chicks (saleable chicks), and the price chicken growers pay hatcheries for chicks (placeable chicks).

The BC Chicken Marketing Board has the authority to set the minimum price chicken growers are paid for their chicken.

BC Broiler Hatching Egg Commission

Since 1995, the Commission has set its chick prices based on a price linkage agreement with the Chicken Board. The intent of the linkage is to put chicken growers and hatching egg producers on an equal price footing by ensuring that the percentage of recovery of cost of production is the same. In January 2020, the Commission gave industry notice  that it intends to exit the price linkage agreement because it is no longer resulting in a sustainable price for hatching egg producers. Prior to submitting its final decision and rationale to BCFIRB, it plans to complete an internal assessment and determine a new formula for hatching egg cost of production, hatchery margin and breeder chick/vaccine pricing.

At the same time as its exit notice, the Commission requested that two linkage-related appeals filed by the Primary Poultry Processors Association of BC (PPPABC) and the BC Chicken Growers Association (BCCGA) (December 23 and 27 respectively) be deferred until BCFIRB’s supervisory consideration of the Commission’s linkage exit submission.

In February 2020, BCFIRB agreed to the deferral.

In March 2020, BCFIRB established a 3-member supervisory panel to address the Commission’s notice to exit the price linkage agreement, consider the Commission’s submission, and address any related matters.  

BC Chicken Marketing Board

In July 2018 the Chicken Board put in place an interim pricing formula. The interim pricing formula was appealed by the PPABC and the BCCGA. In May 2019 a BCFIRB appeal panel directed that a long-term price formula was to be issued by the Chicken Board no later than January 2020 (see PPPABC and BCCGA v. BC Chicken Marketing Board). BCFIRB subsequently extended the deadline to May 2020 at the request of the Chicken Board.  On April 14, 2020 the Chicken Board again gave notice it would be unable to meet the extended BCFIRB deadline.

On April 29, 2020, the BCFIRB appeal panel deferred the matter of a time for adoption of a new chicken pricing formula to BCFIRB’s supervisory authority.

 

Timeline and Documents

Review letters and documents are posted to ensure a transparent, fair and accountable process. Persons are responsible in the first instance for informing BCFIRB if, in their view, the information they are providing is confidential. The panel will assess the information and reasons for confidentiality before determining if or how the information should be disclosed.

Use the search box and the table sort function (click in the table headings) to find documents.

 

Timeline and Documents Table
When Who What
2021-07-21 BCFIRB Letter (PDF) response to PPPABC re Confidential Information
2021-07-20 BCFIRB Letter (PDF) response to BCCGA re Wendy Holm Continuing Role
2021-07-15 BCFIRB Letter (PDF) Wendy Holm Transition
2021-07-16 BCFIRB Letter (PDF) re industry stability - Boards to Respond
2021-07-15 BCCGA

Letter (PDF) re-PPPABC Appeal Industry Stability and Current Pricing Structures. 

  • Spreadsheet (PDF) Comparison of Posted Base Weight Category Live Chicken Pricing Pricing
  • Report (PDF) CFC Canadian wholesale prices
  • Report (PDF) CPEPC GMC Report 20210704
  • Report (PDF) CFC Storage Stocks 2106
2021-07-15 PPPABC Letter (PDF) to BCFIRB Response Industry Stability and Pricing Structures
2021-07-08 BCFIRB Letter (PDF) Request for submissions: industry stability and pricing
2021-06-01 BCFIRB

Letter (PDF) BCFIRB response to PPPABC May 21, 2021 Letter

2021-05-21 PPPABC Letter (PDF) PPPABC re Long Term Chicken Sector Pricing Review - Further Concerns
2021-05-19 BCFIRB Letter (PDF) BCFIRB response to May 14, 2021 PPPABC re process and roundtables
2021-05-14 PPPABC Letter (PDF) PPPABC re process and roundtables
2021-05-05 BCFIRB Letter (PDF) BCFIRB response to April 23, 2021 PPPABC further procedural concerns
2021-04-23 PPPABC Letter (PDF) PPPABC re: Review process
2021-03-31 CMB Letter (PDF) CMB process and timeline update
2021-03-17 BCFIRB Letter (PDF) BCFIRB re Pricing Review Timeline
2021-03-05 BHEC CMB Letter (PDF) BHEC CMB process and timeline update
2021-01-27 BCFIRB Letter (PDF) BCFIRB re Outstanding process concern questions
2021-01-22 BCFIRB Letter (PDF) BCFIRB Liaison re Outstanding process concern questions
2021-01-19 BCCGA Letter (PDF) BCCGA re Outstanding process concern questions
2020-12-07 BCFIRB Letter (PDF) BCFIRB re PPPABC Procedural Fairness
2020-11-13 BCFIRB Letter (PDF) BCFIRB re BHEC change in breeder processing age response
2020-11-27 PPPABC Letter (PDF) PPPABC re Chicken Sector Pricing Review Process
2020-11-04 BHEC

Letter (PDF) BHEC response to BCFIRB re Processing Age

Letter (PDF) BHEC Serecon Oct letter appendix

2020-11-04 BCFIRB Letter (PDF) BCFIRB re PPPABC information management
2020-10-25 BCFIRB Letter (PDF) CMB removal ON levy
2020-10-30 BCFIRB

Letter (PDF) BCFIRB re BHEC change in breeder processing age

2020-10-27 PPPABC Letter (PDF) PPPABC re information management
2020-10-27 BCCGA Letter (PDF) BCCGA re BHEC processing age decision
2020-10-28 BCFIRB

Letter (PDF) Terms of Reference Long Term Chicken Sector Pricing Review
Summary Stakeholder Feedback (PDF)
Final Terms of Reference (PDF)

2020-10-26 CMB Letter (PDF) CMB re BCFIRB position on ON levy and BHEC age change
2020-10-23 BHEC Letter (PDF) BHEC re rational change in processing age
2020-10-24 CMB Letter (PDF) CMB Pricing question to FIRB Panel

2020-10-05

2020-10-06

BHEC CMB

Cover Letter for Terms of Reference (PDF)

BCBHEC and BCCMB Pricing Review Terms of Reference for Stakeholder Feedback (PDF)

2020-09-26 BHEC Draft Tasks and Timelines (PDF) in response to BCFIRB’s August 28 letter
2020-09-28 CMB Draft Tasks and Timelines (PDF) in response to BCFIRB’s August 28 letter
2020-08-28 BCFIRB Letter (PDF) Project Liaison and Final Chicken Pricing Review Process
2020-08-25 PPPABC Letter (PDF) in response to BCFIRB's August 13, 2020 letter
2020-06-26 BCFIRB Meeting Summary (PDF) regarding June 17, 2020 meeting with BCEHA
2020-06-26 BHEC CMB Joint written submission (PDF) in response to BCFIRB’s June 8, 2020 request
2020-06-26 CMB

Written submission (PDF) in response to BCFIRB’s June 8, 2020 request

Additional documents:
CMB submission cover letter (PDF)

2020-06-26 BHEC

Written submission (PDF) in response to BCFIRB’s June 8, 2020

Additional documents:

2020-08-13 BCFIRB Letter (PDF) regarding BCFIRB process, joint CMB-BHEC process proposal and stakeholder input received
2020-08-05 BCEHA Written submission (PDF) in response to BCFIRB’s July 30, 2020 request for input
2020-08-05 BCCGA Written submission (PDF) in response to BCFIRB’s July 30, 2020 request for input
2020-08-05 PPPABC Written submission (PDF) in response to BCFIRB’s July 30, 2020 request for input
2020-08-04 BCHEPA Written submission (PDF) in response to BCFIRB’s July 30, 2020 request for input
2020-07-30 BCFIRB Letter (PDF) Input Requested on Joint BC Chicken Marketing Board-Broiler Hatching Egg Commission Pricing Review Process Proposal
2020-07-28 CMB BHEC Written submission (PDF) further response to BCFIRB’s July 13, 2020 long-term pricing process letter
2020-07-17 CMB BHEC Written submission (PDF) in response to BCFIRB’s July 13, 2020 long-term pricing process letter
2020-07-16 BCHEPA Written submission (PDF) in response to BCFIRB’s July 13, 2020 long-term pricing process letter
2020-07-15 PPPABC Written submission (PDF) in response to BCFIRB’s July 13, 2020 long-term pricing process letter
2020-07-15 BCEHA Written submission (PDF) in response to BCFIRB’s July 13, 2020 long-term pricing process letter
2020-07-13 BCFIRB Letter (PDF) Long Term Pricing Review Process
2020-07-03 BCFIRB Interim Pricing Decision (PDF)
2020-06-19 BCCGA Written submission (PDF) in response to BCFIRB's June 8, 2020 request.
2020-06-19 PPPABC

Written submission (PDF) in response to BCFIRB's June 8, 2020 request.

Additional documents:

2020-06-12 BCHEPA Letter (PDF) outlining its position on interim and long-term pricing.
2020-06-12 BCFIRB Meeting Summary (PDF) regarding June 3, 2020 meeting with PPPABC.
2020-06-10 BCFIRB Meeting Summary (PDF) regarding May 28, 2020 meeting with BCCGA.
2020-06-09 BCCGA Letter (PDF) in response to June 3, 2020 meeting with panel, and initial responses to the June 6, 2020 request to provide a written submission.
2020-06-08 BHEC Letter (PDF) in response to BCEHA's May 26, 2020 letter, regarding a formula based approach to develop a new hatchery margin, and recent BHEC pricing activities.
2020-06-08 BCFIRB Letter (PDF) to stakeholders requesting written submissions.
2020-06-01 BCFIRB Letter (PDF) inviting the BCHEPA and the BCEHA to meet with the panel, or provide written submissions.
2020-05-26 BCEHA Letter (PDF) providing its concerns and positions on interim and long-term pricing.
2020-05-22 BHEC Letter (PDF)  outlining BHEC's position in response to BCCGA's May 20, 2020 letter, concerning the status of spent fowl and salvage egg revenue streams.
2020-05-12 BCFIRB Supervisory Panel Letter (PDF) from Panel inviting key industry parties to provide a written submission or meet with the panel to discuss interim pricing stability and long-term pricing barriers and considerations.
2020-05-12 BCFIRB Supervisory Panel Meeting Summary (PDF) regarding April 30, 2020 meeting with BHEC and CMB, and outlining next consultation steps.
2020-04-29 BCFIRB Pricing Appeal Panel Decision (PDF) to rescind January 21, 2020 A-163 deadline, and transfer of chicken pricing formula matters to the Supervisory Review Panel.
2020-04-28 BCFIRB Letter (PDF) to PPPABC and BCCGA regarding April 30, 2020 BCFIRB meeting with BHEC and CMB, and further consultation.
2020-04-20 BCFIRB Pricing Appeal Panel Request for submissions (PDF) regarding rescinding A-163 deadline and transferring matter to BCFIRB supervisory authority
2020-04-16 PPPABC Letter (PDF) to Supervisory Panel requesting consultation opportunities and to be provided information regarding ongoing consultation.
2020-04-14 BCFIRB Supervisory Panel Letter (PDF) agreeing to March 8 BHEC and CMB proposal that a joint meeting be scheduled in the last week of April, or first week of May.
2020-04-14 CMB Letter informing BCFIRB that due to COVID-19 and the BCFIRB March 17, 2020 decision to initiate a Supervisory Review, CMB will be unable to meet the A-163 deadline Order.
2020-04-08 BHEC, CMB Joint letter (PDF) regarding Linkage Review meetings, COVID-19 impacts, and requesting a joint initial meeting with BCFIRB Panel.
2020-03-17 BCFIRB Letter (PDF) announcing initiation of Chicken Price Linkage Supervisory Review. BHEC and CMB directed to meet with the panel.
2020-03-04 BHEC Letter to BCFIRB providing update on price linkage exit work
2020-02-25 BCFIRB Appeal Panel (N1911 & N1912) Deferral decision (PDF) regarding PPPABC and BCCGA appeals (N1911 and N1912), following submissions from PPPABC (Feb. 5, 2020)and BCCGA (Feb. 6, 2020). Appeals deferred until a supervisory process has been completed. The supervisory panel is not limited as to the issues it may consider, the process it may follow, or the time frame to conclude its supervisory process.
2020-01-27 BHEC Letter regarding PPPABC and BCCGA appeals (N1911 and N1912), providing notice of exit from Price Linkage Agreement (rationale forthcoming to BCFIRB) and recommending deferral of PPPABC and BCCGA appeals pending a supervisory process.
2020-01-21 BCFIRB Pricing Appeal Panel Decision (PDF) to grant extension to A-163 (May, 2020) to allow CMB to develop a long-term pricing formula following a submission process.
2020-01-17 BCFIRB Pricing Appeal Panel Request for positions (PDF) re Long-term chicken pricing formula deadline extension
2020-01-15 CMB Letter to BCFIRB regarding the progress to date of the Price Working Group (PWG) established to recommend a long term pricing formula in response to BCFIRB's May 16, 2019 decision. Notification that the PWG cannot make a recommendation for A-161, and recommends implementing an interim pricing formula.
2019-12-27 BCCGA Notice of Appeal re: BHEC Nov 27 & Nov 28 decisions (N1912)
2019-12-23 PPPABC Notice of Appeal re: BHEC Nov 27, 2019 decision (N1911)
2019-12-13 BCFIRB, BHEC, CMB Meeting between Chairs and Executive Directors to discuss outstanding BCFIRB questions.
2019-11-27 BHEC Letter to BCFIRB advising that spent fowl and salvage eggs revenue will be removed from hatching egg COP effective Period A160 (started November 4, 2019).
2019-10-28 BHEC, CMB Letter to stakeholders regarding progress on "BC Chicken Industry Strategic Framework", and summary of Sept. 25/26 “summit”. Notice that BHEC update regarding broiler hatching egg pricing originally set for Nov. 4, 2019 will be postponed pending a Nov. 5 meeting with CMB.
2019-10-25 BHEC, CMB September 25/26, 2019, joint summit meeting to assist both boards in the development of a framework to support a joint approach to issues and priorities in the BC chicken industry.
2019-10-17 BCFIRB Letter (PDF) to BHEC and CMB requesting monthly meetings regarding pricing matters, to commence in mid-November, 2019.
2019-10-15 BHEC BHEC reverses decision to remove spent fowl and surplus egg revenue from the Cost of Production for the time being. Reiterates process and communications to date.
2019-08-23 BHEC BHEC decision to remove spent fowl and surplus egg revenue from the Cost of Production starting A-159.
2019-08-22 BCFIRB Letter (PDF) to BHEC and CMB clarifying BCFIRB is not initiating a supervisory review at this time.
2019-08-08 BCFIRB, BHEC, CMB In-person meeting between Chairs & staff to discuss potential supervisory review.
2019-08-07 BHEC, CMB Letter to stakeholders outlining joint initiative to establish the framework for a “BC Chicken Industry Strategic Plan”, and next steps.
2019-07-31 BCFIRB Letter (PDF) to BHEC outlining requirements regarding exiting the linkage, and reiterating support for BHEC and CMB to work together to find a solution.
2019-07-29 BCFIRB Letter (PDF) to BHEC and CMB regarding July 17, 2019 teleconference between BCFIRB, BHEC, and CMB, and further plans to meet with each board. 
2019-07-17 BCFIRB, BHEC, CMB Teleconference meeting between Chairs & staff to discuss BHEC and CMB plan to develop an overall strategy for the BC chicken industry.
2019-07-11 BHEC, CMB Submission in response to BCFIRB's June 28, 2019 letter. BHEC and CMB objective is to provide comprehensive recommendations regarding all pricing related matters to BCFIRB no later than November 2, 2019.
2019-06-28 BCFIRB Letter (PDF) to BHEC & CMB regarding BHEC's Apr. 14, 2019 linkage exit notice, directing BHEC and CMB to work together on a solution prior to Period A-158 (Aug. 4, 2019), and to provide BCFIRB a written submission outlining progress no later that July 19, 2019.
2019-05-16 BCFIRB Pricing Appeal Panel BCFIRB chicken pricing appeal decision (PDF) regarding PPPABC and BCCGA appeals of CMB July 6, 2018 implementation of an interim pricing formula. CMB directed to issue a long-term pricing formula no later than period A-161.
2019-04-18 BHEC Notice to Industry regarding price linkage issues and potential for BHEC withdrawing from the price linkage.
2020-09-01 BCCGA Letter (PDF) to BCFIRB regarding the appointment of Jennifer Curtis to the position of liaison.
2020-09-03 CMB Letter (PDF) to BCFIRB regarding the appointment of Bill Vanderspek to the position of liaison.
2020-09-04 PPPABC Letter (PDF) to BCFIRB regarding the appointment of Craig Evans to the position of liaison.
2020-09-10 BHEC Letter (PDF) to BCFIRB regarding the appointment of Stephanie Nelson to the position of liaison.