Tuesday, June 7, 2016

Chicken filling the meat gap

The national chicken agency is increasing production targets for this fall, noticing strong demand because prices for beef and pork are relatively high.

The increase is two per cent for early fall and three per cent heading into the Christmas season.

Ontario’s targets have been set higher than the national average at 2.5 and 3.6 per cent.

That’s in keeping with a new national policy that allocates more of any production increases to Ontario, partially satisfying the province’s long-standing complaints that it has been chronically short of chicken.

In the past the shortage led to purchasing battles and significant premiums.

That was resolved by the marketing board by giving each processing plant a set percentage of market share; premiums would only increase their costs, not their supplies.

But then they went shopping for more birds in Quebec and Quebec processors retaliated by shopping in Ontario.

That was resolved when the two provinces and marketing boards banned importing from each other.

Now that Ontario is getting more chicken production rights, it has also moved to open the market for new processors to fill niche-market and specialty-market demand and to allow small-scale production without quota.


The combination of national increases and Ontario’s larger share of those increases will, if producers fill their quotas, increase Ontario production by 4.8 per cent this year.