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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

USDA Anticipates Exports of 165,000 Metric Tons of Chicken to Canada in 2021


According to the USDA-FAS GAIN Report CA2021-0048 on Canada released on August 31st, the U.S. will supply 165,000 metric tons of chicken to our northern neighbor in 2021.  This will represent 84.1 percent of Canadian imports of chicken RTC in 2021, with Brazil supplying 8.0 percent, Thailand 3.4 percent. Producers in E.U. nations and Argentina will collectively supply 4.6 percent of broiler imports some of which may be re-exported to the U.S., the Philippines, Cuba and Jamaica.  Total chicken meat exports by Canada, derived from both domestic production and imports will amount to 70,967 metric tons in 2021.


In 2021, Canada will produce 1.360 million metric tons of RTC chicken, increasing by 2.9 percent to 1.4 million metric tons in 2022.  Imports will represent 12.1 percent of total supply of 1.66 million metric tons in 2022.  Total exports including re-export will comprise 10 percent of production in 2022.  Assuming a 38 million population of Canada, 2022 consumption will be 84.5 pounds per capita.


Production of chicken in Canada is subject to a supply management system designed to prevent fluctuation in farm income.  In terms of the Farm Products Agencies Act of 1979, Chicken Farmers of Canada, a statutory body decides on quotas for the ten producing Provinces with volumes allocated at eight-week intervals.  Factors influencing quota decisions include feed cost, projections of consumption, inventory, demand from the major consumer sectors including retail, QSRs, restaurants and hotels, world production and domestic economic trends.


Independent chicken producers purchase feed, chicks and other inputs and are paid by processors according to a production formula. Live broilers are currently transferred to processors at U.S. $0.58 per pound live.  Retail prices range from $1.60 per pound for leg quarters through $2.40 per pound for whole birds and $4.50 per pound for skinless boneless breast.


In 2022 the total tariff rate quota will be 110,380 metric tons of which the USMCA proportion will be 51,000 metric tons followed by the WTO TRQ at 39,800 metric tons and the Comprehensive And Progressive Agreement for Trans-Pacific Partnership, 19,580 metric tons.

Copyright © 2021 Simon M. Shane