Canadian Broiler Meat Production Forecast to Grow Moderately
CANADA - Post forecasts another year of moderate growth for 2015, with broiler meat production estimated at 1,100,000 metric tons (MT), or two per cent above the 2014 level.
29 August 2014
3 minute read
The entire poultry sector will continue to take advantage of reasonable priced feed, and of tight supplies and high prices in the red meats sector. With supply management, poultry farmers in Canada recover their costs of production from processing plants. Farmers are, therefore, sheltered from the impact of fluctuating feed costs. Although poultry processors' ability to pass on input costs to downstream customers is more limited, in 2015 they are likely to continue to enjoy above average profit margins.
For 2014, Post estimates the broiler meat production at 1,078,000 MT, a level reflecting an improved performance in the sector compared to previous years, as the industry steadily increased production throughout the year to meet a solid demand. As such, the 2014 broiler meat production is estimated to be 2.5 per cent higher than in 2013.
Canadian imports of chicken meat are regulated under a tariff rate quota (TRQ) which is a function of the previous year's production level. The global quota for 2015 is projected at 80,900 MT. In 2014 the TRQ level is 78,900 MT.
Canadian poultry companies have been increasingly utilizing various government managed Imports for Re-Export Programmes (IREP). Through IREP, Canadian chicken processors import chicken meat duty free for use in processing, provided they re-export the associated processed products. Since 2007, imports for re-export have exceeded the TRQ volume, and therefore total chicken imports are about double the TRQ volume.
The IREP offered by Canada Border Services Agency (CBSA), called the Duties Relief Programme, continued to increase in popularity among Canadian companies. Post anticipates that by 2015 three quarters of Canada's imports for re-export will be part of CBSA's programme, as opposed to the traditional IREP administered by the Department of Foreign Affairs, Trade and Development (DFATD).
Moving into 2015, Canada’s turkey sector will continue to show a modest growth, with production forecast at 172,000 metric tons, or 2,000 MT above the estimated level for 2014. This is a continuation of the recent trend, as this segment of the poultry market also takes advantage of the tight red meats market.
Further Reading
You can view the USDA GAIN: Canada Poultry and Products Annual 2014 report by clicking here.
