Negotiating Agency
 18. (1) Subject to subsections (6) and (7), the negotiating agency may adopt or settle by agreement the minimum live prices for chickens or for any class, variety, grade or size of chickens in accordance with this section. O. Reg. 6/15, s. 1 (1). (1.1) In this section, “chick” means a chicken that is less than seven days of age; (“poussin”) “feed” means broiler chicken feed; (“nourriture”) “quota period” means a quota period established by the local board for the purposes of sections 10 and 11. (“exercice contingentaire”) O. Reg. 6/15, s. 1 (1). (2) Beginning with quota period A169, the negotiating agency shall negotiate the minimum live prices for chickens by applying the following formula and negotiating adjustments to the various components of the formula in accordance with subsections (3), (4), (5) and (5.3): MLP = CP + FP + PM where, “MLP”  means the minimum live price for chickens, “CP”  means the weighted average live chick price established by the Ontario Broiler Hatching Egg and Chick Commission for each quota period, expressed in dollars per kilogram of live chicken, and adjusted as necessary by the negotiating agency each quota period, “FP”  means the weighted average feed price derived from at least three independent Ontario feed mills with the largest volume of sales of chicken broiler feed that is reported by the Ontario Agri Business Association for each quota period, expressed in dollars per kilogram of live chicken, and adjusted as necessary by the negotiating agency each quota period, and “PM” means the producer margin, being the sum of the costs and expenses described in Column 2 of Table 1 of this section, as those costs and expenses are valued by the negotiating agency annually under subsection (4). O. Reg. 51/21, s. 1 (1). (3) The negotiating agency shall negotiate the chick price and feed price each quota period. O. Reg. 6/15, s. 1 (2). (4) Each year, the negotiating agency shall negotiate the value of each of the costs and expenses described in Column 2 of Table 1 of this section and the renegotiated values shall take effect at the beginning of the first full quota period of the year. O. Reg. 6/15, s. 1 (2); O. Reg. 51/21, s. 1 (2). (5) Despite subsection (4), the values of any costs and expenses that are to be negotiated annually under that subsection may be negotiated more frequently than annually if exceptional and unforeseen circumstances exist. O. Reg. 6/15, s. 1 (2). (5.1) If the values of any costs and expenses are negotiated more frequently than annually in accordance with subsection (5), the renegotiated values shall take effect at the beginning of the quota period that follows the conclusion of the negotiations and shall remain in effect until the beginning of the first full quota period of the following calendar year. O. Reg. 6/15, s. 1 (2). (5.2) Revoked: O. Reg. 51/21, s. 1 (3). (5.3) Despite subsections (2) to (5.1), the negotiating agency shall negotiate the minimum live prices for chickens for quota period A169 by applying the formula set out in subsection (2), subject to the following rules: 1.  The chick price shall be determined by using the amount of $0.3422 as the chick price for quota period A148 and negotiating adjustments to that amount to reflect the changes from quota period A148 to quota period A169. 2.  The feed price shall be determined by using the amount of $0.6301 as the feed price for quota period A148 and negotiating adjustments to that amount to reflect the changes from quota period A148 to quota period A169. 3.  The producer margin shall be determined by using the sum of the values set out in Column 3 of Table 1 of this section as the producer margin for quota period A148 and negotiating adjustments to those values to reflect the changes from quota period A148 to quota period A169. O. Reg. 51/21, s. 1 (4). (6) Subject to subsection (8), whenever the negotiating agency negotiates to determine the category pricing grid, it shall give notice to interested organizations who have requested to receive such notice, including Restaurants Canada, and those organizations shall be entitled to participate in the negotiations. O. Reg. 264/02, s. 2; O. Reg. 6/15, s. 1 (3). (7) Subject to subsection (8), if an interested organization, including Restaurants Canada, wishes the negotiating agency to negotiate the category pricing grid, the organization may, upon request to the negotiating agency, initiate and participate in the negotiations. O. Reg. 264/02, s. 2; O. Reg. 6/15, s. 1 (4). (8) The participation by interested organizations under subsections (6) and (7) is limited to participation in the negotiations to determine the category pricing grid, but does not include the right to proceed under section 19 to arbitration and to file a statement with the Commission under clause 19 (1) (b).  O. Reg. 264/02, s. 2. Table 1   Costs and expenses included in Producer Margin Column 1 Item   Column 2 Costs and Expenses   Column 3 Value of Costs and Expenses as of Quota Period A148 (expressed in dollars per kilogram of live chicken) 

  1.   Energy   0.0541 

  2.   Repairs and Maintenance   0.0134 

  3.   Property Taxes and Insurance   0.0132 

  4.   Office and Overhead   0.0230 

  5.   Contract Services   0.0932 

  6.   Labour — General Management   0.1220 

  7.   Return on Capital   0.0886 

  8.   Working Capital Interest   0.0009 

  9.   Farm Vehicle    0.0085 

  10.   Levies and licence fees   0.0215 

  11.   Depreciation of assets   0.0726 

  12.   Non-Feed Additives   0.0022 

  13.   Avian Influenza Disease Insurance   0.0015 

  14.   Modular Loading   0.0120 O. Reg. 51/21, s. 1 (5).