Saskatchewan Chicken Industry Investment Fund and Development Fund

History of the Funds

Memorandum of Understanding

In the latter part of 1998, an agreement was reached with The Chicken Farmers of Canada to enable Saskatchewan to double production by the end of 2002. The agreement was formalized in a Memorandum of Understanding (MOU) between the Province of Saskatchewan and The Chicken Farmers of Saskatchewan. The MOU specified that two funds, an investment fund and a development fund, were to be created from the proceeds of the auction of expansion quota. The MOU further specified that the expansion quota is subject to an annual check-off that is also to be deposited to the funds until a total of $12 million has been raised from the auctions and the check-off. The development fund, that is to receive 20% of the auction proceeds and check-off, is to be used for the general development of the Saskatchewan industry. The investment fund, that is to receive 80% of the auction proceeds and check-off, is to be dedicated to new processing facilities/capacity in the province.

Structure of the Funds

Auction proceeds and proceeds from the check-off are deposited to a trust fund. A three member Board of Trustees manages the trust assets. The trustees review proposed investments by the investment fund to ensure that they are consistent with the fund's objectives. The Board of Trustees allocate funds to the development fund as funds are required.

The investment fund is structured as a for profit corporation with an eight-member Board of Directors. Before an investment project can proceed, it must be approved by the investment fund's Board of Directors and be approved by a vote of at least 60% of voting registered producers.

The development fund is structured as a non-profit corporation with an eight-member Board of Directors that is responsible for administering and approving expenditures and projects.