The board overseeing chicken production in Manitoba has decided the smallest operations in the business should be bigger.
Operating efficiencies and cost reduction were cited as reasons behind the decision of the Manitoba Chicken Producer Board to increase the minimum farm quota from 20,000 kilograms to 30,000.
“They want to expand at the same time the industry is expanding,” said Fred Homann, general manager of the board.
“The intent is trying to drive efficiency from the farmer right up through the chain.”
The efficiency aspect includes costs such as chick deliveries, feed supplies and processor innovations.
“We’re trying to raise the level to provide everyone to a more efficient unit,” said chair Waldie Klassen.
“All over the country you see farm sizes are increasing.”
Klassen also pointed out smaller farms paid overproduction penalties more frequently than larger operators. During 1997, 25 smaller farms paid penalties out of a total of 31 farms and of those, four paid twice.
The new minimum level, which has been approved by the Natural Products Marketing Council, will be phased in over three years ending in 2001.
