Below are a few elements of the 2019 Annual Performance Report. To view the full report, click here: ENGLISH / FRENCH
We are committed to advancing sustainable, high quality chicken agriculture and working to enable Ontario farmers to earn a good living, now and for future generations.
In an industry that must deal with constant change, it is critically important that CFO remains future-focused, effective and highly relevant to its farmer-members, customers, industry value chain stakeholders, to public policy, and consumers.
We must continue to successfully adapt and evolve in order to meet the changes underway, and the modern realities that we face.
We believe our performance in 2019 demonstrates we have made progress in making our business stronger.
However, we regretfully did not succeed in achieving CFO’s #1 priority: a principle-based, better Ontario minimum live price outcome, as expressed in a new Cost of Production Formula (COPF), and to be implemented during 2019.
We are very aware of our responsibility to enable our farmers to earn a good living, and for their farm enterprises to thrive.
Successful family farms are a crucial building block to Ontario’s rural communities. CFO represents over 1,300 family-run farms located in over 330 communities across Ontario. Chicken farms support over 22,000 jobs in Ontario and contribute over $3.8 billion annually to Ontario economic activity.
Farmer financial well being has become increasingly diminished since the implementation of Ontario’s first COPF in 2015, resulting in a decline in financial returns to farmers.
2019 was meant to be a year of positive COPF transformation. We strived to move forward, to re-balance and strengthen the historical COPF mechanism, and to improve farmer incomes and better position our farmers - ultimately to strengthen and sustain the family farm.
Our COPF project goal was very clear:
“to innovate and collaborate with industry to achieve a minimum live price formula that provides for a fair and reasonable return on labour and capital, and that enables investment in a sustainable growing Ontario chicken industry.”
Commencing in 2018 and continuing through 2019, CFO endeavoured to develop a new COPF and create shared success with the Association of Ontario Chicken Processors (AOCP). Despite best intentions, a disciplined process, dedicated work and considerable resourcing - we were not successful.
Throughout the months of COPF work, it has become clear that Ontario primary processor-buyers do not hold the same views as CFO on what constitutes fair financial rewards for farmers - today and for the future.
CFO and AOCP are now advancing their distinct, opposing positions for new Ontario pricing to the Ontario Farm Products Marketing Commission (OFPMC) for its review, analysis - and a COPF decision in 2020.
First and foremost, we are inspired by our Mission,
“to lead positive change and build value as Canada’s premier provider of trusted, family-farmed, safe, high quality chicken.”
This is our responsibility, and everything we do is guided by our Mission. Our aim is to generate significant value for our farmer-members and to also strengthen the Ontario chicken industry. We must both protect and grow our business, responsibly.
We serve our farmer-members and customers in attractive and growing markets. We are well-positioned in a very attractive protein market. The nature of our business is to enable growth, quality, safety, efficiency, reliability and sustainability. We aspire to be an organization that consistently delivers exceptional performance.
Our team is aligned to achieve our Mission. It motivates our CFO colleagues to do their best every day. Additionally, everything we do is grounded in our four Values: Leadership, Accountability, Excellence and Collaboration.
It is a privilege to lead and steward our supply management-regulated chicken industry.
We have a responsibility to lead and evolve our supply management system, and to further build on our legacy.
In 2019, we kept executing on our strategy to deliver governance, commercial, operational and financial excellence:
to lead positive change and build value as Canada’s premier provider of trusted, family-farmed, safe, high quality chicken.
We are entering the decade of the 2020s and we will need to be better.
We have to think differently than yesterday.
What opportunities, challenges and change dynamics will chicken agriculture and industry face, as we move forward? We believe creating a better tomorrow starts today, and we continually strive toward improvement and excellence for the betterment of our farmer-members and the chicken industry.
During 2019, CFO embarked on a disciplined process to focus-forward: with the development of CFO Strategic Plan 2020-2022.
CFO’s strategy, regulatory and commercial initiatives, as well as our daily work, will ensure that farmer-members have the opportunity to obtain fair and sustainable financial returns; have a beneficial impact on consumers; adapt to and support open, fair and competitive markets; drive growth and productivity in the chicken industry, and advance the Ontario economy.
A strong commitment and a better strategy for performance and sustainable value.
Every successful team has a playbook designed around its strategy, collective strengths and commitment to performance. Our playbook has been in place for several years, but we continue to refine, revitalize and innovate five strategic levers: the foundation for everything we do.
We grow with consumers and our customers.
We’re committed to driving high quality revenue growth and consistent margin expansion.
CFO allocation and business development leadership at Chicken Farmers of Canada has helped support a good year for Ontario production growth in 2019. We capitalized on positive market conditions with planned production allocation volumes of 2.2% over adjusted base. 2019 was the sixth consecutive year of significant growth.
Importantly, we continued to grow our farmer-membership with 42 new farmers entering the chicken business in 2019.
We operate in growing markets that are underpinned by positive consumer trends. High quality chicken continues to be the preferred consumer meat protein choice. We will continue to achieve profitable sustainable growth by being responsive to, and consistently meeting, consumer demand and increasing chicken’s market share of consumer meat protein consumption.
Growth was achieved across CFO’s diversified business portfolio: in Core, Specialty and Community business segments. Higher levels of growth were achieved in certain distinct premium markets: in Core: Raised Without Antibiotics; in Specialty: Specialty Breeds and Organic; and in Community: Artisanal.
CFO farmer-members work diligently to deliver production quality, safety, efficiency, reliability and sustainability.
Seeking the next level of performance, we continually improve production standards, practices, capabilities and outcomes.
In 2019, our farmers achieved production fulfillment results of 100.44% and 590 million live kilograms.
Consumer interest in, and expectations of, food production standards and practices is increasing. Often, this is characterized as “sustainably raised” or “environmentally friendly” or “socially responsible”. Research indicates that consumers care about how farm animals are raised, and this factor influences their food choices.
Our strategy and business model must also evolve, not only to keep pace, but to stay ahead of this change. CFO is committed to advancing responsible, sustainable production practices. At a most basic performance level, CFO will continue to advance the chicken industry’s Code of Practice.
During 2019, we have focused on continuous improvement in flock production outcomes to better meet marketplace needs, to achieve optimum financial returns for our farmer-members, and to support the profitable, sustainable growth of the industry. A special Board Working Group and the Production Committee focused on optimizing production results.
We also experienced a significant level of farmer-member investments in new barn construction which will enhance future Ontario production capacity and efficiency. 116 new barns were built by new quota holders and existing quota holders.
We actively identify, assess, mitigate, and manage risks.
In all our operations, our explicit aim is to ensure what we do today lowers risk and strengthens both CFO farmer-members and the Ontario industry value chain for the future.
CFO has consistently advocated for implementation of a progressive national antimicrobial reduction plan to meet the expectations of consumers and industry. Following the successful elimination of the preventative use of Category II antibiotics in 2018, during 2019 CFO supported CFC’s strategy development for dealing with Category III antibiotics. It is expected CFC will conclude a strategy by June 2020.
CFO collaborated with the chick value chain during 2019 to build chick supply capacity, capabilities, and overall performance. A special Board Working Group focused on optimizing chick results with Ontario’s hatcheries and the Ontario Broiler Hatching Egg and Chick Commission (OBHECC). Transparency along the chicken value chain, better understanding of results for all stakeholders, improved communications and collaborative problem solving all helped to improve Ontario’s production potential.
Ontario chicken farmers follow high standards of animal care. Those standards of care include biosecurity protocols designed to protect animals from disease. Anyone entering barns or farms, handling animals or moving between barns without following proper biosecurity protocols puts the health of animals, the safety of food and the livelihood of farmers at risk. Throughout 2019, CFO has worked closely with Minister Hardeman, OMAFRA, and the Ontario government to advance a responsible approach to addressing safety and security concerns from increased activity of animal activists and trespassing on private property.
In 2019, CFO also worked alongside OBHECC and AOCP to develop a practical solution to effectively and humanely manage the mass euthanasia of chicken in emergency situations. The governments of Ontario and Canada have supported this initiative, committing up to $350,873 in cost-share funding to CFO, under the Canadian Agricultural Partnership.
CFO continued proactive advocacy and government relationship initiatives with Provincial and Federal Government politicians and staff, and the Chicken Farmers of Canada (CFC), to actively support our supply management system and its benefits for all Canadians.
Through 2019, we intensified comprehensive political advocacy and government staff engagement to support mitigation of the impact of imports. Specifically, the Federal Government must be held accountable and execute on their trade mitigation commitments and improve outcomes.
In the area of trade risk, both the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the new Canada-United States-Mexico Agreement (CUSMA) make fundamental changes to how imports are administered and grant increased access to our supply-managed domestic market.
We work together to do the right thing, the right way, and build value and trust.
We act according to our shared CFO values: leadership, accountability, excellence and collaboration.
We believe that business-led collaboration is the most effective way to influence and manage change, to effectively deal with shared challenges and issues, and to create new shared business opportunities.
We seek to better engage with Ontario farmer-members, processors, other industry value chain stakeholders and government, to collaboratively advance Ontario’s business performance for shared success.
Throughout the year, CFO sought to improve its engagement with our farmer-members. Engaging constructively with our farmer-members to identify issues and opportunities, share perspectives, build understanding and commitment, and to develop solutions that meet our mutual interests, is our goal.
We also continue to seek to find better ways to work for shared success with Ontario processors and other industry value chain stakeholders. Our goal is to better engage constructively with our industry to identify issues and opportunities, share perspectives, build understanding and commitment, and to develop solutions for shared success.
CFO operates in close alignment with Chicken Farmers of Canada (CFC) to provide responsible supply management system leadership and to ensure the system proactively evolves and delivers effective and efficient approaches which support the National and Ontario chicken industry reaching its full potential.
CFO actively collaborates with the national agency in responding to opportunities and issues that affect the chicken industry, ensuring consistency in messaging to both Provincial and Federal levels of government, and in ensuring that the supply management sector continues to evolve to support the wellbeing and economic interests of farmers, industry, and the Canadian public.
Supporting CFC is a major strategic, governance and operational commitment for us. We provide active support to the CFC Board and CFC Committees, as well as working to build strong Board and staff relationships.
It is a privilege to lead and steward our regulated chicken industry.
We are committed to serve the public interest by ensuring the supply management system adapts to change, successfully evolves, delivers added value, and always acts with integrity.
As stewards of the supply management system and as industry self-regulators, we have a deep responsibility to be good governance, regulatory and fiduciary leaders and managers with high ethical standards. We must continually foster and demonstrate integrity in an environment that is rapidly evolving and becoming increasingly complex.
CFO aspires to operate and be recognized as a corporate governance leader that delivers effective, efficient and expert supply management system leadership and stewardship. During 2019, CFO worked to continually improve its governance and regulatory effectiveness through strategic focus, monitoring of risk, and by delivering solutions and services to our stakeholders.
To enhance its accountability and effectiveness, each year the Board conducts an Annual Board Performance Evaluation which assesses the performance of the Board, individual Directors, the Board Chair, and Committees of the Board. 2019 results have shaped our 2020 governance priorities and workplan.
Moving forward, our governance, regulatory and fiduciary goals are to:
We work together to do the right thing, the right way, and build value and trust.
We are challenging ourselves to deliver modern, responsible regulation that enables and supports the profitable, sustainable growth of family farms and a strong, successful chicken industry.
Are we doing our best for future generations?
As we consider value-creating options for the future, we need to remember the journey that created the supply management system we have today. Established in 1965, CFO, working together with farmer-members, industry stakeholders and the Ontario Farm Products Marketing Commission, has built a solid regulatory framework with strong levels of business performance, supported by effective regulatory compliance, supervision and enforcement.
Our regulatory focus has been one of successfully executing to,
As a progressive supply management leader and steward, CFO must continually focus on achieving better outcomes.
In addition to ensuring continued effective ongoing supervision and management of the regulated Ontario chicken industry, we have choices to make about our shared chicken future and the role we will play in shaping it.
CFO’s regulatory commitment to growth, quality, safety, efficiency, and reliability continues - as does our leadership for sustainability: how we think and act to create shared value, and by supporting collaborative solutions.
Moving forward, we have a clear regulatory transformation strategy to deliver value. CFO will step forward to demonstrate our leadership for regulatory reform in an increasingly complex, changing world with two key priorities:
Our goal is to be responsive to the rapid pace of change in the overall protein and chicken marketplace. We must ensure that we understand and respond to the realities and needs of stakeholders.
Stakeholder engagement in the strategy, policy and regulatory process is vital as it helps to ensure regulatory requirements are relevant, practical and appropriate.
Through farmer-member and industry value-chain stakeholder engagement including consultations to shape CFO’s Strategic Plan, as well as ongoing operations and specific issues management, District Committee Representative input, and Board Directors’ guidance, a number of regulatory themes, opportunities and challenges have been advanced. This input has informed the CFO Strategic Plan 2020-2022 strategies, key priorities and areas of focus, covering short, medium and longer-term timeframes.
Strategic Plan 2020-2022 demonstrates CFO’s intent to regulate differently. It’s time to modernize our supply management regulatory system for the next generation.
The Ontario Government is fostering a stronger environment for Ontario businesses and investors, themed “Open for Business”. This includes cutting red tape and reducing regulatory burden. The Government plans to systematically review Ontario’s stock of regulations, then streamline, modernize and eliminate unnecessarily complicated, outdated or duplicative regulations.
CFO has positioned itself and promoted that “We Take Care of Business” as a key supply management governance and business-facilitator strategy. CFO’s commitment to streamline regulatory requirements and processes (which will make it easier to participate in Ontario’s chicken industry) supports the Ontario Government’s ambition.
We strive to be an effective, progressive and responsible regulator by routinely monitoring and evaluating our performance - for its leadership, quality, integrity and sustainability; the effectiveness and efficiency of regulatory functions and processes; by employing highly professional and qualified staff; and continuously strengthening Board governance.
We are focused on regulatory value-creation, being collaborative, fair-minded, professional and acting without bias.
In support of our commitment to be transparent and accountable, CFO will continue the annual disclosure of our key priorities for the coming fiscal year (2020), and report on our actions and progress throughout the year, internally and externally.
We seek to continuously improve the clarity of our reporting, consultations and collaboration. CFO maintains regular dialogue with stakeholders through its stakeholder engagement programs, directed towards ensuring mutual understanding of objectives, actions and outcomes.
We are committed to advancing sustainable, high quality chicken agriculture and working to enable Ontario chicken farmers to earn a good living, now and for future generations.
2020 will bring both challenge and opportunity.
We are focusing on growing with our farmer-members and customers in high growth markets with consumer-preferred products, supported by integrated production and marketing solutions. We will continually challenge ourselves to optimally use our resources to deliver the best for our farmer-members, customers, the industry value-chain, and the Ontario economy.
We strive to partner for shared success.
We know that the success of the chicken industry rests on the inherent skills, motivation and engagement of our talented people, and by supporting them in being the very best professionals that they can be.
People make the difference.
Our success is fundamentally based on our CFO team members’ sense of responsibility, professionalism, focus on finding solutions, and providing excellent service.
Having highly engaged colleagues is essential to our culture and to achieving our Mission. At CFO, we embrace diverse perspectives and empower our staff-associates to improve our organization, to help us innovate, and to continuously improve our workplace.
Our 2019 staff-associate engagement survey results show Engagement at 67% - at norm with industry comparators, with Enablement at 77% - above norm and above high performing comparators. Results also demonstrate a healthy CFO work environment, staff aligned with strategy, caring for employees, and promoting diversity.
During 2019, CFO invested in the development and wellbeing of our Board Directors, District Committee Representatives, and staff-associates. We value, challenge, recognize and reward our people. We are fostering a culture of professionalism, quality, responsibility, agility and decision-making through personal and team development focused on excellence in,
At CFO, we are committed to maintaining supportive and enriching environments in which our Board, District Committee Representatives and staff-associates can thrive and succeed.
All success is derived through priority: knowing what matters most, marshalling limited resources to their best use, and achieving better outcomes, consistently.
We are evolving our strategy to deliver sustainable growth and value creation.
We have a great business today and we are well positioned for future success. We see great potential in both the chicken market and our industry, and for each of our business segments - Core, Specialty, and Community. At the same time, we recognize we must successfully navigate an evolving business operating environment. We are managing CFO for long-term value creation.
We believe we have a winning strategy and business model. At the same time, we are challenging ourselves, from first principles, “why we do, what we do”. We seek to better leverage our strategic, regulatory and operational initiatives to build and further enhance a growing, sustainable business.
CFO continues to work closely with the Ontario Farm Products Marketing Commission to strengthen the system and to collaboratively advance strategies and manage issues relevant to the Ontario chicken industry. We are grateful for the Commission’s leadership and support. As a partner, we will continue to work together to advance Ontario’s interest in the national regulated marketing system.
We would also like to personally thank all Board Directors, District Committee Representatives, and CFO staff-associates for their dedication and hard work in 2019. As a result of their passion and energy, CFO has operated as a strong and progressive supply management leader within the Ontario and Canadian industry.
We look forward to working with our Board team, our DCRs, our staff-associates, our farmers, our industry and our government to further advance the Ontario chicken industry in 2020.
Thank you for your trust, confidence and support.
Ed & Rob
Derek Detzler, DCR for District 1, manages his family’s chicken farm in the Walkerton area, while simultaneously maintaining a position as Executive Director of Trillium Hatchery and providing global technical service to a poultry nutrition company. Derek has been an advocate for responsible antibiotic use. As a DCR, Derek’s passion for chicken farming makes him an excellent lead and support for his fellow chicken farmers in District 1.The Importance of responsible use of antibiotics
Marius Hol and his family first entered the chicken industry through the CFO New Entrant Chicken Farmer Program in 2014. As a passionate chicken farmer in the Goderich area, Marius was interested in sharing his knowledge, meeting with chicken farmers across the province, advocating for supply management, and being a voice for his fellow farmers in District 2, ultimately becoming a DCR in 2019.New Entrant Chicken Farmer Program
Carolyn Cornelissen is not only an active chicken farmer, running Cornelissen Farms Inc. and Twin Creeks Greenhouse with her family in Lambton County, she’s also very active in her role as District 3 DCR, in the CFO Women in Leadership Initiative and in the CFO Cares: Farmers to Food Banks program. Carolyn enjoys investing her time and knowledge to help continue to build a strong industry for future generations, whether that be supporting and encouraging other female chicken farmers to grow their involvement in the industry, giving back to those in need in her community, or being an advocate for fellow District 3 farmer-members. You can read more about Carolyn’s accomplishments in the October 2019 article on The Poultry Site: “Women in Poultry: Carolyn Cornelissen.”Growing CFO’s Women in Leadership Initiative
Farming alongside his wife and three children, Darren Kraay is heavily involved both in the chicken industry and in his community. Not only a District Committee Representative for District 4, Darren is also involved in the CFO Cares: Farmers to Food Banks Working Group. In Darren’s words, he has found that the best way to learn about the industry and represent the chicken farmers in his district is to be hands-on, meeting regularly with farmer-members, fellow DCRs, and CFO Board Directors.CFO Cares Farmers to Food Banks (video)
As a multi-generational chicken farmer, poultry farming is in Pete Koroneos’ blood. When on-farm, Pete enjoys raising chickens and growing crops with the help of his family. When off-farm, Pete can be found offering his vast poultry industry experience and knowledge in both his role as District Committee Representative for District 5 farmer-members and as a valued member of the DCR Communications Working Group. Pete is also an Appointed Member of the Ontario Ministry of Agriculture, Food and Rural Affairs Appeals Tribunal, and regularly volunteers in multiple community-oriented organizations in the Niagara Region. As part of his agricultural-related positions, Pete often meets with the farmer-members in his community in order to better advocate for their agricultural requirements.Stakeholder Communications
Having grown up on a family chicken farm, John Opsteen is a life-long poultry farmer who now runs his own farming operation in District 6. When he’s not busy on the farm, John can be found attending to the needs of the agricultural community and working on behalf of the farmer-members in his District. John is also a member of the DCR Communications Working Group, through which he provides invaluable input in helping ensure farmer-members receive communications tailored to their needs.We're Social
As both a long-time chicken farmer and a long-time District Committee Representative, Alfred Rumph is very active in both the industry and his community and strives to find ways to continue to improve poultry agriculture across Ontario. Alfred is passionate about giving back to those in need, and participates in the CFO Cares: Farmers to Food Banks program as both a donor and a member of the CFO Cares Working Group.Working Towards a Hunger Free Ontario
Wendy is a proven leader in both her poultry business and her local farming community in her role as DCR for District 8. As one of four female DCRs, Wendy has a strong focus on encouraging more women to become active within the farming community — a role she accomplishes through planning events that provide the opportunity to learn, interact and build relationships with one another. In addition to chicken farming, Wendy works off-farm as a social worker in her community. More information about Wendy’s involvement both on and off the farm can be found in the May 2019 article on The Poultry Site – “Women in Poultry: Wendy Lantz”.Growing CFO’s Women in Leadership Initiative
A passionate broiler and egg farmer in Eastern Ontario, Marc and his family have been raising their flocks with dedication and care for numerous years. In addition to poultry farming, Marc, his daughter Melissa and son in law Andrew also operate a family-run grain crop farm, grain elevator and feed mill called Bourdon Feed & Grain Inc.
In keeping their farming operations running smoothly, Marc leads and advocates on behalf of the Ontario eastern-region chicken farmer-members as District 9 DCR.French Services Team