USDA International Egg and Poultry
23 January 2013
USDA International Egg and Poultry Review - 23 January 2013
Canadian Chicken Industry
Canada’s broiler production in 2013 is expected to increase 0.5%
compared to 2012. Imports are expected to grow by 3.7% and
exports by 3.5% in 2013 compared to the previous year. Broiler meat
consumption has increased over the years. The increase was partly
due to the country’s population growth, the pattern of Canada’s
immigrant population that is more likely to have dietary preference for
chicken rather than beef or pork, and the perception that chicken is
leaner and therefore healthier than other meats.
Canada uses a supply management system in the broiler sector and
production is tightly controlled through a quota system. Decisions on
production volume are taken before every 8-week production cycle,
with the national volume allocated to each of the ten producing
provinces, and subsequently further allocated to individual producers
based on the total production quota. The industry is not vertically
integrated; Canada has a multitude of independent chicken farmers
supplying live birds to processing companies.
With the supply management system, chicken producers receive a
fixed price for their live birds, which is determined every 8-week
production cycle, based on production costs. Poultry farmers recover
their cost of production from processing plants. In this way, farmers
are sheltered from the impact of record high feed costs. The same
cannot be said about poultry processors. Their ability to pass on high
input costs to downstream customers is limited.
Canada: Broiler Production, Supply and Demand
Canadian imports of chicken are regulated under a tariff rate quota
(TRQ), which is a function of the previous year's production level. The
global quota for 2013 is projected at 78,000 MT. In 2012 the TRQ
level was 77,000 MT. In recent years, Canadian poultry companies
have increasingly utilized International Trade Canada’s Import to Re-
Export Program (IREP). Through IREP Canadian chicken processors
import chicken under tariff free supplementary import permits for use
in processing, provided they re-export the associated processed
product. As a result, total chicken imports are about double the TRQ
volume, as attributed to IREP imports.
Some Canadian importers are discouraged from importing Brazilian
chicken, despite its lower cost, because it cannot be re-exported to
the United States. The Canadian Food Inspection Agency (CFIA) has
strict import procedures to ensure that Brazilian chicken in Canada
does not enter the United States. Canadian poultry slaughter and
processing establishments that import poultry meat from Brazil are
not eligible to export poultry meat products to the United States.
Canada and Mexico formally joined the Trans-Pacific Partnership
(TPP) trade negotiations in October 2012. The TPP is a free trade
agreement under negotiation by 11 countries. The other countries in
TPP are Australia, Brunei Darussalam, Chile, Malaysia, New
Zealand, Peru, Singapore, Vietnam and the U.S. Together these 11
countries represent a market of nearly 658 million people.
Source: USDA GAIN Report CA12034; press releases from the
Office of the United States Trade Representative and Foreign Affairs
and International Trade Canada
Poultry Imports Report – Chicken, in kilograms Monthly Breakdown with Prior Year Comparison
(1) Chapter 16 = Preparations of Meat, (2) Chapter 19 = Stuffed Products (<20% Meat), (3) Chapter 21 = Food Preparations (<20% Meat)
Data for Chapter 16, 19 and 21 reflect the actual product net weight and not its content of poultry meat. Includes quantities imported under the import for re-export program (IREP)
Canada: Chicken Imports and Exports
January 2013
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