Broiler Hatching Egg Levy Amendments

Summary#

The Order Amending the Canadian Broiler Hatching Egg Marketing Levies Order (SOR/2021-108) changes the per-egg levy rules for broiler hatching eggs. It sets a new rate for British Columbia and adds a levy on eggs produced in non-signatory provinces that are shipped into signatory provinces. The changes take effect June 19, 2021 and stop applying on June 23, 2022.

What it does#

• Sets the levy rate in the Province of British Columbia at $0.021000 per broiler hatching egg.
• Imposes a levy of $0.013687 per broiler hatching egg on a producer, dealer or hatchery operator in a non-signatory province when those eggs are produced in the non-signatory province and shipped in interprovincial trade into a signatory province.
• Specifies that these levy provisions cease to have effect on June 23, 2022.
• States the order comes into force on June 19, 2021 (or on the day it is registered if registered after that date).

Who's affected#

• Producers, dealers and hatchery operators who handle broiler hatching eggs in British Columbia will see the $0.021000 per-egg rate applied.
• Producers, dealers and hatchery operators in provinces that are not signatories to the marketing plan may face the $0.013687 per-egg levy when they ship eggs into signatory provinces.
• The changes were made by the Canadian Hatching Egg Producers with approval from the National Farm Products Council. The notice does not list which provinces are “signatory” or “non-signatory,” so that detail remains unclear from the order itself.

Why it matters#

• The levies change the per-egg cost faced by hatchery operators and egg producers. Small per-egg fees can add up quickly across large volumes, so total costs for producers and the price signals to buyers may be affected.
• The levy on eggs shipped from non-signatory provinces into signatory provinces may affect decisions about where eggs are produced and sold across provincial borders.
• The changes are time-limited (until June 23, 2022), so they set short-term funding and trade rules for the broiler hatching egg sector while further decisions or adjustments may follow.