The Chicken Farmers of Ontario (CFO) and the Association of Ontario Chicken Processors (AOCP) have requested that the Commission amend the cost of production formula (COPF) under Regulation 402 (Chickens - Marketing), which provides for the control and regulation of the producing and marketing of chickens in Ontario. Regulation 402 provides for the establishment of a negotiating agency that may adopt or settle by agreement the minimum live price for chicken. In accordance with the regulation, members of the negotiating agency are appointed by CFO and licensed Ontario chicken processors. A final offer arbitration process is the dispute resolution mechanism that the regulation provides in the event that the negotiating agency does not arrive at an agreement. The Commission last amended Regulation 402 to establish a COPF for the negotiating agency to negotiate the price of live chickens in January 2015. These amendments were made based on data and information submitted by the industry and through broad consultation.Since the industry began using the COPF in quota period A-129 (January 2015), the negotiating agency has successfully reached a price agreement without the use of arbitration.In the spring of 2018, CFO and AOCP began work on updating the COPF. Although the parties were able to work together to come to an agreement on almost 75 per cent of the updated COPF elements, they were unable to agree on the remaining elements. As such, CFO and AOCP have asked the Commission to propose amendments to Regulation 402.The current formula is expressed as:Minimum live price = (chick price + feed price + producer margin) - Annual AdjustmentsThe regulation provides the starting values for the chick price and feed price components, from which the negotiating agency negotiates adjustments every quota period.The starting values of eleven components of the producer margin are listed in Table 1 of Regulation 402, eight of which may be adjusted by the negotiating agency annually, or more frequently if exceptional and unforeseen circumstances exist. The remaining three items are fixed and non-negotiable. The mandatory annual adjustment calculations which prescribe efficiency adjustments are described in detail in Schedule A of the regulation.The Commission is considering changes to all components of the current formula, including the items, values and designation in Table 1, and the potential elimination of annual adjustments.The proposed amendments would not change the role of the current price negotiating agency or its authorities under the regulation.The Commission has the authority to amend Regulation 402 under section 7(1) of the Farm Products Marketing Act.The Commission continues to strongly encourage CFO and AOCP to work together to find an industry solution to the COPF up until any final amendments are made.