In 2020, the B.C. Farm Industry Review Board (BCFIRB) started a supervisory review of pricing in B.C.’s broiler hatching egg and chicken sectors. New cost-of-production pricing formulas were implemented by both sector regulators.
What was decided
BCFIRB approved cost-of-production pricing formulas submitted by two poultry sector regulators. Each board is responsible for implementing its formula according to the approved timelines and conditions.
BCFIRB issued the decisions in June 2022 and May 2024.
B.C. Broiler Hatching Egg Commission (BCBHEC)
Decision issued: June 2022
- Approves the formula BCBHEC submitted, which sets the price that hatcheries pay producers for hatching eggs
- Requires BCBHEC to implement the formula using a graduated approach described in their submission
- Implementation began in pricing period A-179 (October 2022) and concluded in A-188 (March 2024)
B.C. Chicken Marketing Board (BCCMB)
Decision issued: May 2024
- Approves the formula BCCMB submitted for setting the price that processors pay chicken growers for live chicken
- Requires BCCMB to follow its graduated implementation plan over six pricing periods
- Implementation began in pricing period A-190 (June 2024) and concluded in A-195 (April 2025)
What this means for affected groups
The approved cost-of-production formulas affect how prices are set, paid and implemented across the poultry sector. These outcomes support BCFIRB’s public interest role and governance expectations, including the SAFETI principles.
Hatching egg producers and chicken growers
Will be paid using B.C.-specific cost-of-production formulas. Prices are recalculated every 8 weeks and reflect local feed, chick, and utility costs, which improves income predictability.
Hatcheries and processors
Will need to apply the new pricing when buying or selling chicks or live chicken. Farm-gate prices may differ from past formulas that relied on benchmarks from other provinces.
Regulated marketing boards and commissions
BCBHEC and BCCMB must use the approved formulas to set prices every 8 weeks. BCFIRB continues to supervise for alignment with legislative and policy requirements.
New entrants and industry associations
The shift to transparent, cost-based pricing helps reduce uncertainty and supports fair access to the supply-managed system.
How pricing and regulation work in B.C.’s poultry sector
BCFIRB initiated the supervisory review in 2020 in response to long-standing pricing challenges in B.C.’s poultry sectors, including:
- Continued pricing uncertainty in the chicken supply chain
- Repeated appeals of pricing decisions by BCBHEC and BCCMB
- The breakdown of a long-standing price linkage agreement between BCBHEC and BCCMB
- The need for long-term pricing models tailored to B.C.’s production costs
BCFIRB previously issued pricing directions to BCCMB in 2010 and 2019. This supervisory review built on those actions to support the development of transparent cost-of-production formulas specific to B.C.’s poultry sector.
The poultry supply chain in B.C.
Poultry production follows a structured supply chain:
- Broiler hatching egg producers breed hens and roosters to produce fertilized eggs
- Hatcheries incubate eggs and sell newly hatched chicks to chicken growers
- Chicken growers raise chickens and sell them live to processors
- Processors prepare chicken for sale to retailers, restaurants, or consumers
Each step depends on the one before it, and pricing affects how products move through the system.
Who sets prices and how often
Two provincial regulators set prices at different points in the supply chain. Both regulators set prices for each eight-week pricing period, using approved cost-based formulas.
B.C. Broiler Hatching Egg Commission
- Sets the minimum price hatcheries pay producers for hatching eggs
- Sets the price chicken growers pay hatcheries for saleable chicks
B.C. Chicken Marketing Board
- Sets the minimum price processors pay chicken growers for live chicken
- This is called the “live price”
The national quota system and B.C.’s share
Chicken is a supply-managed commodity in Canada. Production is controlled to match consumer demand.
- Chicken Farmers of Canada (CFC) sets the total national production quota
- B.C. receives a share of this quota, which is allocated to growers by BCCMB
- BCBHEC oversees hatching egg producers under the same federal–provincial system
This system helps balance supply across provinces and prevent overproduction.
BCFIRB’s oversight role
BCFIRB is the supervisory body for regulated agricultural marketing in B.C. It oversees BCBHEC and BCCMB under the Natural Products Marketing (BC) Act (NPMA).
BCFIRB does not set prices directly, but ensures that decisions by the boards:
- Are legally authorized
- Reflect sound marketing policy
- Support the public interest
BCFIRB can issue directions, approve or reject pricing models, or conduct supervisory reviews.
Formula changes
Following this review, the approach to B.C.’s chicken pricing changed:
B.C.’s move to cost-of-production formulas
Historically, B.C. chicken pricing was based on Ontario’s live price, adjusted for differences in feed cost. This approach caused several issues:
- Ontario’s pricing formula is not publicly available
- B.C. producers generally use feed (wheat instead of corn) with higher costs
- The Ontario benchmark didn’t reflect B.C.’s actual cost structure
To address this, BCFIRB required both boards to develop B.C.-specific cost-of-production formulas, using transparent, verifiable inputs. These inputs include:
- Feed costs
- Chick prices
- Utilities and other indexed production costs
Prices now change every eight weeks based on updated data for these inputs.
What the formulas apply to
The approved formulas apply to regulated prices only. This includes:
- What hatcheries pay producers
- What growers pay hatcheries
- What processors pay growers
The formulas do not regulate:
- The price consumers pay in stores or restaurants
- Pricing set by processors, retailers, or distributors
These downstream prices are influenced by market conditions, business decisions and broader economic factors, not by BCFIRB or the marketing boards.
Review process
The review took place in three key phases between 2020 and 2024, with input from both regulators and industry interest holders.
Step 1: Define scope and stabilize interim pricing (2020)
BCFIRB began the review in early 2020 due to pricing uncertainty and appeals involving:
- BC Broiler Hatching Egg Commission (BCBHEC)
- BC Chicken Marketing Board (BCCMB)
Initial meeting with boards
On April 30, 2020, BCFIRB met with both boards to:
- Review pricing work already completed
- Discuss the need for interim pricing measures during the review
Industry consultation
BCFIRB also consulted with key industry groups, including:
- BC Chicken Growers Association (BCCGA)
- Primary Poultry Processors Association of BC (PPPABC)
- BC Broiler Hatching Egg Producers Association (BCBHEPA)
- BC Egg Hatchery Association (BCEHA)
Interest holders were invited to submit written input.
Setting the process structure
Following these consultations:
- BCBHEC and BCCMB developed Terms of Reference for the review
- BCFIRB approved the Terms of Reference on October 28, 2020, setting the scope, purpose, and structure for the process
Step 2: Develop long-term pricing recommendations (2021–2023)
Board-led development process
Each board led an inclusive, transparent process to develop a new cost-of-production formula for its part of the poultry supply chain. This included third-party expert reviews and input from industry participants.
Final recommendations submitted
- On March 4, 2022, BCBHEC submitted its BCBHEC final pricing recommendation (PDF, 4.7MB)
- On October 30, 2023, BCCMB submitted its BCCMB final pricing recommendation (PDF, 2.1MB)
Step 3: Final decisions and implementation (2022–2024)
BCFIRB approved each board’s formula with specific conditions for implementation:
B.C. Broiler Hatching Egg Commission formula
- Approved June 2022
- Phased in across ten pricing periods (A-179 in October 2022 to A-188 in March 2024)
- Required one pricing period of advance notice
B.C. Chicken Marketing Board formula
- Approved May 2024
- Phased in over six pricing periods (from A-190 in June 2024 to A-195 in April 2025)
How prices are now set
Both pricing formulas are now active. Prices are updated every eight weeks using B.C.-specific, transparent cost inputs, including:
- Feed
- Chick prices
- Utilities
This model provides greater stability and ensures that pricing reflects actual production costs in B.C.
Documents related to the review
These documents show what happened during the supervisory review of pricing in B.C.’s broiler hatching egg and chicken sectors. They include decisions, submissions, meeting records, and correspondence from 2019 through 2025.