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International Egg and Poultry Review

by 5m Editor
19 September 2007, at 9:27am

US - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry.

Canada

Annual Canadian broiler chicken production advanced 5.0% in the 5 years 2001-2006, but in 2007 is estimated to increase 2.0-2.4 percent over 2006. Canada remains the third most important export market for U.S. poultry meat, after Mexico and the Russian Federation, with record value exports during the first 6 months of 2007 at $201 million, up 34% compared to same period in 2006. Canadian broiler chicken 2006 imports were 82% from U.S. with Brazil second at 17%.

Canadian poultry slaughter and processing establishments that import poultry meat from Brazil are not eligible to export poultry meat products to the United States. All poultry meat and meat products present in the non-eligible establishments must not enter Canadian establishments that have full export status for the United States.

Canada controls imports of chicken under a tariff rate quota (TRQ). The minimum access level (into Canada) under the WTO is 39,844 metric tons but Canada applies the higher access level of the NAFTA, which is equal to 7.5% of the previous year's domestic chicken production as reported by Statistics Canada. For 2007, the global chicken TRQ is 72,800 metric tons.

However, Canada regularly issues supplementary import permits for: 1) periods when there are product shortages, 2) the chicken Import to Re-Export Program (IREP), under which supplementary import permits are issued to Canadian poultry processors whose finished manufactured products are intended for re-export, and 3) to Canadian poultry companies, commonly referred to as the FTA (free trade agreement) sector, who compete in the Canadian marketplace with similar, imported processed products that receive zero-tariff treatment under the NAFTA.

In recent years, Canadian poultry companies have increasingly utilized IREP whereby they import chicken under supplementary licenses for the domestic market provided they export an equal amount of product. IREP enables Canadian companies to help meet the domestic demand for mostly white meat chicken and export dark meat chicken for which there is substantially less demand in Canada. Imports under the IREP program to mid August 2007 totaled approximately 50,500 MT, an amount only slightly less than the 52,600 MT imported under the TRQ.

Similar to chicken, turkey meat imports into Canada are subject to a tariff rate quota calculated at the higher of 3.5% of the current year's production allocation as estimated by the Canadian Turkey Marketing Agency, or the WTO access level. For 2007, the WTO access level is 5,588,000 kilograms, which is a higher level than 3.5% of the current year's estimated production quota. Imports supplementary to the TRQ and imports under the IREP for turkey have propelled actual imports well beyond the TRQ level.
Source: USDA/FAS

Canada TurkeyMeat (Metric Tons)

Source: USDA/FAS

Canadian Per Capita Consumption of Poultry Meat
(kg; eviscerated basis)

Source: Statistics Canada

Canadian Broiler Chicken Imports
(metric tons)

Source: USDA/FSA, Statistics Canada & World Trade Atlas
Sum of HS codes 0207.11; 027.12; 0207.13; 0207.14; 1602.32
Subtraction of various HS Codes for spent fowl

Canadian Chicken Exports
(metric tons)

Source: USDA/FSA, Statistics Canada & World Trade Atlas
Sum of HS codes 0207.11; 027.12; 0207.13; 0207.14; 1602.32

To view the full report, including tables, please click here

5m Editor