Vol. 145, No. 7 — March 30, 2011


SOR/2011-73 March 17, 2011


ARCHIVED — Regulations Amending the Compensation for Destroyed Animals Regulations

The Minister of Agriculture and Agri-Food, pursuant to paragraph 55(b) (see footnote a) of the Health of Animals Act (see footnote b), hereby makes the annexed Regulations Amending the Compensation for Destroyed Animals Regulations.

Ottawa, March 16, 2011

Minister of Agriculture and Agri-Food



1. Items 19 to 26 of the schedule to the Compensation for Destroyed Animals Regulations (see footnote 1) are replaced by the following:


Column 1


Column 2


Column 3
Maximum Amount ($)


Chicken (Gallus gallus) — For egg production




Chicken (Gallus gallus) Parent breeder — For egg production




Chicken (Gallus gallus) Grandparent breeder — For egg production




Chicken (Gallus gallus) Parent breeder — For meat production




Chicken (Gallus gallus) Grandparent breeder — For meat production




Chicken (Gallus gallus) Primary breeder — Foundation Stock




Chicken ( Gallus gallus) All chicken other than those referred to in items 18.1 to 22.1




Turkey (Meleagris gallopavo) For meat production




Turkey (Meleagris gallopavo) Parent breeder




Turkey (Meleagris gallopavo) Grandparent breeder




Turkey (Meleagris gallopavo) Primary breeder — Foundation Stock




2. These Regulations come into force on the day on which they are registered.


(This statement is not part of the Regulations.)

Issue and objectives

The compensation program, administered by the Canadian Food Inspection Agency (CFIA) under the authority of the Health of Animals Act as part of the National Animal Health program, helps to control the spread of animal diseases, including those that would have a significant economic impact, by encouraging early reporting. The outcome is better protection for Canadians from diseases that can be transmitted by animals.

Under the Health of Animals Act, the Minister can authorize payment for the market value of animals ordered destroyed in an outbreak situation. Subsequent to two incidents of avian influenza in British Columbia’s Fraser Valley in the winter of 2009, it was deemed necessary to review the method of determining market value for poultry. The goal was to ensure that appropriate models are available for prompt calculation of market value for birds ordered destroyed in the event of a depopulation order when there is no readily available market for these birds. The review revealed a need to correspondingly adjust the maximum monetary amounts currently specified for chicken and turkey in the schedule to the Compensation for Destroyed Animals Regulations (CDAR). Adequate compensation is essential in order to encourage the prompt reporting of disease by producers. Avian influenza can spread very rapidly among birds and although this happens rarely, it can be transmitted to and cause disease in humans.

The objective of this regulatory amendment is to establish a maximum poultry compensation rate reflective of today’s market realities in order to continue promoting early reporting of diseases controlled under the Health of Animals Act, and encourage producer cooperation and participation during control/eradication efforts meant to prevent or reduce the spread of disease. This amendment, therefore, will reduce the potential economic impact of a large scale disease outbreak.

Description and rationale

Section 51 of the Health of Animals Act allows the Minister of Agriculture and Agri-Food to order compensation for the market value of animals ordered destroyed and under section 55 the Minister may make regulations setting out maximum monetary compensation amounts for animals or things ordered destroyed for disease control purposes under section 48 of the Act. Monetary compensation encourages early reporting of disease and cooperation by producers during control/eradication efforts intended to prevent or reduce the spread of disease. The amount of compensation awarded, although based on market value of the animal or thing ordered destroyed, cannot exceed the maximum amount specified in the CDAR. It should be noted that the compensation paid under the Health of Animals Act represents only a portion of the actual cost of a disease outbreak, which can have a significant impact on not only the poultry industry, but the economy in terms of lost market access, peripheral business costs and costs for other levels of government.

The current Compensation for Destroyed Animals Regulations were published in 2000 (SOR/2000-233). The maximum amounts for each animal listed in the schedule to the Regulations were completely updated in July 2007 (SOR/2007-169) and later amended in November 2007 (SOR/2007-269), allowing for reasonable compensation to be paid to owners of domestic livestock, poultry and other animals upon destruction of those animals as ordered. Several incidents have resulted in the depopulation of poultry flocks since 2007. In addition to the need to review the method of determining market value, the need to take into account the higher production costs of organic and other special production methods, which occupy an increasing proportion of the market, was identified. As a result, there is a need to correspondingly amend the maximum monetary amounts payable for poultry in the CDAR Schedule.

Early reporting of these diseases to CFIA veterinary inspectors, encouraged by compensation reflective of today’s market, is essential for prompt intervention and implementation of corrective actions. Such actions will minimize the spread of the disease and its impact on human and animal health, and subsequently, the economic viability of Canada’s poultry sector.


The supply-managed industry engaged with CFIA in a review of the methodology for determining market value for poultry through a Steering Committee comprised of members of the five national supply-managed associations (Egg Farmers of Canada, Turkey Farmers of Canada, Chicken Farmers of Canada, Canadian Hatching Egg Producers and Canadian Poultry and Egg Processors’ Council). The Committee was supported by a technical working group. The resulting open, transparent and inclusive process examined possible revisions to the economic model used to estimate market value for birds for which a market value is not readily available. Three key principles guided the review: maximum amounts were to be set high enough to encourage early reporting and owner cooperation; maximum amounts were to be based on reliable market information or a sound economic model; and market value of superior genetics and/or niche markets such as organic product were to be recognized in the establishment of maximum amounts. The review also assumed that no amendments to the Health of Animals Act would be entertained and that, as a result, no consideration would be given to compensating producers for lost income.

The Steering Committee met three times: in June and November of 2009 and in October 2010. The technical group had extensive discussions on the model and cost inputs, and conducted some testing of the model with producers. The new maximum compensation amounts are the result of that work on the economic model and extensive and specific discussion of the maxima with the supply-managed associations. As a result of their extensive involvement in the process, the supply-managed industry is supportive of the proposed amendments. The Canadian Livestock Genetics Association was also consulted and, in response, an additional item for primary breeder foundation stock has been added to the schedule.

Implementation, enforcement and service standards

The authority to prescribe regulations establishing maximum amounts of compensation for animals ordered destroyed is contained in paragraph 55(b) of the Health of Animals Act, S.C. 1990, c. 21.

When depopulation is ordered, compensation is determined through the application of an economic model developed in cooperation with the national supply-managed associations and input of data provided by the affected producer.

All compensation paid under the CDAR is recommended by a veterinary inspector designated under the Health of Animals Act. A mechanism for appeal of compensation amounts is available, as required, pursuant to the Health of Animals Act.


Mr. David Spicer
Regulatory, Legislative and Economic Affairs
Telephone: 613-773-5889
Fax: 613-773-5960
Email: David.Spicer@inspection.gc.ca

Dr. Francine Lord
Terrestrial Animal Health Division
Telephone: 613-221-4624
Fax: 613-228-6143
Email: Francine.Lord@inspection.gc.ca

Footnote a
S.C. 1997, c. 6, s. 71

Footnote b
S.C. 1990, c. 21

Footnote 1