Canadian poultry sector to see growth in 2015: report

Washington, D.C. – Canada’s poultry sector is expected to grow in 2015, says the annual report Global Agricultural Information Network.

The report, which is from the U.S. Department of Agriculture (USDA)’s Foreign Agricultural Service, says Canada’s broiler meat production is expected to increase two per cent.

The reason is that consumers will continue to find chicken an attractive alternative to red meats, says GlobalMeatNews.com, which are experiencing tight supply and high prices. Consumers also see chicken as a healthier option to red meats.

The report also says broiler meat production is expected to rise to 1.1 million metric tonnes, as the sector benefits from reasonably priced feed. This follows an estimated 2.5 per cent rise in production this year compared to 2013 levels, says GlobalMeatNews.com.

Per capita consumption, however, is expected to be flat, at approximately 30.4 kg in 2015, up slightly from 30.2 kg this year.

Canadian imports of chicken meat are regulated under a tariff rate quota (TRQ), which is a function of the previous year’s production level, reports TheMeatSite.com. The global quota for 2015 is projected at 80,900 metric tonnes. In 2014, the TRQ level is 78,900 metric tonnes.

TheMeatSite.com says Canadian poultry companies have been using various government managed Imports for Re-Export Programmes (IREP). Through these programmes, 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 so total chicken imports are about double the TRQ volume.

Canada Border Services Agency (CBSA) offers the Duties Relief Programme, which continues to be popular among Canadian companies. It’s expected that by 2015 three quarters of Canada’s imports for re-export will be part of CBSA’s programme, instead of the IREP administered by the Department of Foreign Affairs, Trade and Development (DFATD).

In 2015, Canada’s turkey sector will continue to show a modest growth, with production forecase at 172,000 metric tonnes or 2,000 metric tonnes above the estimated level for 2014, says TheMeatSite.com. This is part of a recent trend as this segment of the poultry market also takes advantage of the right red meats market.