The Future for Poultry Exports from Canada

1. The Future for Poultry Exports from Canada University of Alberta Xiaochao Qian

2. Canadian Poultry Industry • In 2000, Canada produced poultry products worth $1.6 billion, contributing 5% of Canadian farm cash. • In 2000, Canada produced 877,280 tonnes of chicken, 58% of which was produced in Quebec and Ontario. • Canada’s total commercial chicken and turkey meat production is 1,029.7 million kilograms. It ranks the 10th in terms of production volume in the world.

3. Canadian Chicken Industry Production and Demand: -Chicken isproduced under Supply Management with production and import (tariff rate) quotas. - Chicken production has increased over the last decade. - Demand for chicken increased substantially in Canada in the 1990’s.

4. Canadian Chicken Exports • Prior to 1994, Canadian chicken exports represented less than one percent of domestic production. • After 1994, changes to the production quota allocation system helped Canada increase exports. • Chicken exports represent 0.8% of domestic production.

5. Canadian Chicken Imports • The United States is the sole supplier of Canadian chicken imports. Under the FTA/NAFTA, U.S. access to Canada’s chicken market is based on 7.5% of the previous year’s Canadian production of chicken. • Imports represent 11% of domestic consumption.

6. Canadian Turkey Industry • Production and Consumption -Turkey is produced under Supply Management with production and import quotas. - Demand for turkey increased marginally in Canada in the 1990’s. -Turkey production has been increasing with a large range in 2000.

7. Canadian Turkey Exports • Canada is a net exporter of turkey products. • Canada has increased its turkey exports from 11,145 tones in 1993 to 22,972 tones in 2000. • The average increasing rate during these years is 11%. • Turkey exports represent 15% of production.

8. Canadian Turkey Imports • Canadian turkey imports are restricted to 15% of previous year’s production under WTO/NAFTA. • All Canadian turkey imports are from the United States. • Turkey imports represent 5% of domestic consumption.

9. Major Exporters and Importers of Poultry • The major poultry exporters are: U.S., EU, Brazil, Hong Kong and China. • The major poultry importers are: Russian, Hong Kong, China, and Japan.

10. The Policies of Some Industrialized Countries • Canada has protected their traditional poultry producers by setting high internal prices, restricting imports and limiting the volume of sales per producer. • European Union: Common Agricultural Policy (Subsidies) • United States: The Export Enhancement Program (EEP)

11. Previous Studies Of Poultry Policies

12. Outlook of the International and Canadian Poultry Market • Total broiler exports for major countries are forecast to increase 5 percent to a record 6.3 million tons in 2002. • Increases in broiler exports by the United States, Brazil, China, and Thailand are driven by larger production and price competitiveness. • Further production increase of Canadian poultry meat is possible. • U.S. market access to Canada’s poultry meat will continue to increase due to the NAFTA.

13. New Export Policy for Turkey Objective of this policy: .To facilitate Canadian producers and primary and further processors to engage in export opportunities; .To facilitate the development and maintenance of export markets with Canadian turkey; .To provide for the orderly marketing of all forms of young turkey, including live, eviscerated and processed; .To ensure that mature turkey, and products thereof, do not qualify for export credit.

14. Plan • Build a synthetic/econometric model of the international poultry market • Examine policy effects on Canada from major export competitors. • Investigate whether there would be any export opportunities for differentiated poultry products.