Canada's Broiler Production to Expand as Demand Strengthens

CANADA - Broiler meat production is forecast to expand 2.5 per cent in 2017, as chicken continues to be competitive and an attractive substitute to red meat.
calendar icon 16 August 2016
clock icon 3 minute read

A new report from the US Department of Agriculture's Foreign Agricultural Service (FAS) forecasts that 2017 broiler meat production estimated at 1,195,000 metric tons (MT), or 2.5 per cent above the 2016 estimated level.

The 2016 estimated broiler production levels reflect an improved performance in the sector compared to previous years, as the industry steadily increased production throughout the year to meet a solid demand. Growth in the chicken sector is estimated for 2016 at 4.8 per cent - the last time a rate above 4 per cent was seen was back in 2001.

Current conditions offer good opportunities for chicken sector growth as limited supplies of beef coupled with elevated prices mean chicken is seen as an attractive alternative protein. The report also indicated that Canada's increasing immigrant population forms a good source of growing demand, as many newcomers of Asian or African origin have a stronger preference for chicken meat versus red meat.

Poultry meat will continue to be competitively priced and an attractive substitute to other pricier meats. With Canada's supply management system, poultry farmers in Canada recover their costs of production from processing plants. Farmers are, therefore, largely sheltered from the impact of fluctuating feed costs.

Although poultry processors' ability to pass on input costs to downstream customers is more limited, in 2017 they are likely to continue to enjoy positive profit margins, the report predicted.

Further Reading

You can view the full report by clicking here.

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