Chicken Allocation Quotas Expected to Rise for Canadian Provinces | FBC, Canada's Farm & Small Business Tax Specialist

Chicken Allocation Quotas Expected to Rise for Canadian Provinces

Chicken Farmers of Canada member provinces are expected to see an increase in chicken allocations, and Canadian farmers should be prepared for the uptick. 

An agreement in principle has been reached on national chicken allocations, according to The Western Producer. The deal, which will bring Alberta and Ontario slightly larger allocations based on population growth, will be completed after details are finalized.

Demand For Poultry Expected To Rise

Chicken consumption in Canada is currently building, partially due to record beef and pork retail prices. Poultry farmers are projected to increase production levels to take advantage of the void in the protein market expected due to the rising beef and pork prices, The Poultry Site explained.

The estimate for boiler meat production levels in 2013 was raised 2,000 metric tons to a total of 1,057,000 MT. For the past three years chicken consumption in Canada has been stagnant, but signs are pointing toward an increase this year, the publication noted. Consumption levels hovered around 30 kilograms per person for several years, but is expected to rise to 31 kg/person in 2014. 

Chicken allocations for each member province are determined by market demand and population growth, The Western Producer reported. Provinces negotiate allocations with the understanding that different regions will require different allocations. The quota is raised for provinces that are experiencing higher growth rates. 

"We have been at this seriously for five years," said Mike Dungate, executive director of Chicken Farmers of Canada, according to the publication.
 "We are closer than we have ever been."

As Alberta and Ontario have experienced population swells, they have long maintained a need for increased allocations, the media outlet explained. Alberta dropped out of the Chicken Farmers of Canada in the beginning of the year in protest of the prolonged stretch of under-allocation. The province has continued discussions with the scheme, though. 

"We are party to the agreement in the principle, but that does not mean we are back in the federal-provincial agreement at this point in time." 
Karen Kirkwood, executive director of Alberta Chicken, told The Western Producer. 

Since dropping from the Chicken Farmers of Canada, Alberta has been able to meet poultry demands and processor needs on its own, she noted. There is no deadline for a finalized agreement. 

Chicken farmers in Canada should be prepared for an increase in market demand for chicken, and the projected rise in allocations. 

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