Although the Chicken Board has not received any official written communication, we have become aware that some BC hatcheries and processors are refusing to sign the prescribed BC101 contracts between growers, hatcheries, and processors, effective quota period A-194.
The BC101 contract outlines the roles of each party: the processor representative specifies the target weight of the birds, the grower determines the number of days required to reach that target weight, and the hatchery representative provides the necessary number of chicks, coordinates placement dates, and collaborates with the processor to establish the shipping date.
The Board understands that a contract—whether signed or not—can still be legally binding if the parties have completed their terms. Courts may consider the conduct, actions, and communications between the parties (grower, hatchery, and processor) to determine intent, and an implied contract may arise even in the absence of a signed document.
The Chicken Board emphasizes that all parties remain part of the regulated marketing system, and the General Orders continue to apply. The Board is prepared to take any action necessary to enforce the General Orders and maintain orderly marketing. More information will be communicated as necessary.
The memo can be found here: Processor and Hatchery Signing of Contracts (BC101 Form)