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CANADA:
Market Profiles for Poultry Meat
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CANADA: Market Profiles for Poultry Meat |
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Canada maintains a system of supply management for poultry meat with chicken production tightly controlled by provincial marketing boards. This is a "bottoms-up" approach intended to match chicken output to processor demand. Production allocations to producers are made for production periods of eight weeks after being ratified by the Chicken Farmers of Canada (CFC). Formerly, the national chicken agency attempted to allocate a national production target among the provinces on a strict historical provincial market share basis but it failed to match supply with demand. Presently, under a new national production allocation system the CFC caps the national (and regional) annual production increase at 5 percent while the eastern provinces have successfully lobbied for an increase in an individual province's production to a maximum of 8 percent.
The role of the CFC, the national agency responsible for monitoring production quotas, is also to ensure that producers earn a "reasonable" return from sales, while ensuring processors have an adequate supply of domestically produced birds. Farm-gate prices for chickens are set by committees made by of provincial level grower and processors, with the prices generally pegged to the Ontario price--Ontario being the most populous province with the greatest concentration of growers. These prices reflect on-farm costs and the need for chicken farms to earn a reasonable return.
Under NAFTA, the United States negotiated access to the Canadian chicken market based on 7.5 percent of the previous year's Canadian production level. On January 1, 1995, as part of its implementation of the WTO Agreement, Canada replaced import quotas with tariff rate quotas with high over-quota tariffs on poultry meat and eggs. Over quota imports are subject to tariff rates ranging from 173-278 percent. Canada periodically allows supplementary imports when domestic supplies are tight. Historically U.S. exports have constituted virtually all of Canadian imports and have, due to the issuance of supplemental quotas, exceeded official quota levels.
Economic Profile
1985 |
1990 |
1994 |
1995 |
1996 |
1997 |
1998f |
|
Real GDP Growth (%) |
4.8 |
-0.2 |
4.1 |
2.3 |
1.5 |
3.6 |
3.7 |
Consumer Price Index (%) |
4.0 |
4.8 |
.2 |
1.9 |
1.6 |
1.9 |
1.6 |
Exchange Rate:C$:US$ |
1.36 |
1.16 |
1.36 |
1.36 |
1.36 |
1.37 |
1.32 |
Population (million) |
26 |
27.9 |
29.4 |
29.7 |
30.1 |
30.4 |
30.6 |
Population Growth (%) |
.9 |
1.5 |
1.1 |
1.3 |
1.2 |
1 |
.9 |
Per Capita GDP (in US$) |
13,455 |
20,561 |
18,628 |
19,018 |
19,437 |
20,118 |
21,784 |
Per Capita PPP (in US$)1/ |
na |
na |
20,581 |
21,314 |
21,837 |
22,907 |
24,087 |
Source: DRI/McGraw-Hill 1/ Purchasing Power Parity
The high price structure resulting from Canada's production system, combined by tightly regulated imports, should theoretically limit Canada's participation in world markets and prevent Canadian poultry producers from fully capitalizing on export opportunities. Broiler meat exports from Canada, however, have risen 40-fold from virtually nothing in 1992. In recent years, growing demand for chicken worldwide has provided an export outlet for Canadian chicken legs and backs that are in lower demand in Canada than breast meat and wings. The top four destinations for Canadian chicken meat are China, Cuba, Hong Kong and Russia.
Strong demand for white meat, however, has led to the development of a new export policy in March 1997. This policy allows processors to negotiate a volume and price for chicken for export with their respective provincial agency. The objective of the policy is to allow processors more access to white meat for the domestic market by moving the dark meat offshore. Producers participate by submitting their names to their respective provincial boards and are granted a share of the export quantity for that particular production period
Broiler Meat Profile
1989 |
1990 |
1994 |
1995 |
1996 |
1997f |
1998e |
|
Production (1,000 mt) |
539 |
572 |
696 |
695 |
722 |
752 |
790 |
Exports (1,000 mt) |
1 |
1 |
15 |
39 |
40 |
45 |
50 |
Imports (1,000 mt) |
39 |
49 |
62 |
73 |
71 |
84 |
85 |
Consumption (1,000 mt) |
579 |
613 |
733 |
736 |
754 |
789 |
826 |
Per Capita Cons (kg) |
22.3 |
23.03 |
26 |
25.8 |
26.2 |
27.4 |
28.4 |
U.S. Exports (1,000 mt) 1/ |
39 |
49 |
62 |
73 |
68 |
na |
na |
Quota (7.5% of Prod t-1) |
40.2 |
40.4 |
46 |
52 |
52 |
54 |
56.4 |
Imports as % of Prodt-1 |
8.7 |
9.1 |
10.1 |
10.5 |
10 |
11 |
11 |
1/ U.S. export figures are derived from Canadian import data which are converted to a carcass wt. equivalent.
The TRQ for turkey imports is set at 3.5 percent of the current year's estimate of Canadian turkey production as projected by the Canadian Turkey Marketing Agency. The TRQ for 1998 is set at just under 5,000 tons.
Turkey Meat Profile
1989 |
1990 |
1994 |
1995 |
1996 |
1997e |
1998f |
|
Production (1,000 mt) |
120 |
129 |
133 |
141 |
144 |
142 |
145 |
Exports (1,000 mt) |
6 |
5 |
14 |
18 |
22 |
25 |
25 |
Imports (1,000 mt) |
3 |
4 |
5 |
6 |
5 |
6 |
5 |
Consumption (1,000 mt) |
119 |
125 |
128 |
126 |
123 |
125 |
127 |
Per Capita Cons (kg) |
4.6 |
4.7 |
4.5 |
4.5 |
4.3 |
4.5 |
4.4 |
U.S. Exports (1,000 mt) |
6 |
5 |
5 |
6 |
6 |
na |
na |
Quota (3.5% of Prod) |
4.2 |
4.5 |
4.7 |
4.9 |
5.04 |
5.04 |
4.97 |
Imports as % of Prodt-1 |
2.5 |
3.1 |
3.8 |
4.3 |
3.5 |
4.2 |
3.4 |
Meanwhile on the egg front, Canada sets it's import quotas for shell eggs, frozen, liquified and further processed eggs, and powdered eggs based on the previous year's production levels. Under the Uruguay Round, Canada's minimum access commitment is 12.9 million dozen eggs (154.8 million eggs) in the first year (1995), growing to 21.4 million dozen eggs (256.8 million pieces) by 2000. The type of egg is not specified.
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