Canada's poultry meat production may rise 1.4% in 2014

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Publish time: 2nd August, 2013      Source: www.cnchemicals.com
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August 2, 2013

   

   

Canada''s poultry meat production may rise 1.4% in 2014

   

   

   

After a better than expected performance in 2013, Canada''s poultry sector is expected to have a moderate growth in 2014 as it will take advantage of the situation that competing proteins will remain in short supply and will show increased prices.

   

   

Under Canada''s supply management system, poultry farmers are able to pass on production costs to processing plants, making them less vulnerable to fluctuations in feed prices.

   

   

Anticipating feed prices to remain within tolerable margins, and given a relative short supply of red meats at elevated prices, Post forecasts a moderate growth of 1.4% in broiler meat production in 2014, up to 1,070,000 tonnes.

   

   

For 2013, Post estimates the broiler meat production to be 1,055,000 tonnes, a level reflecting a better than expected performance in the sector, as the industry steadily increased production throughout the year to meet a solid demand. As such, the 2013 broiler meat production is estimated to be 1.7% higher than in 2012.

   

   

Canadian imports of chicken meat are regulated under a tariff rate quota (TRQ) which is a function of the previous year''s production level. The global quota for 2014 is projected at 79,100 tonnes. In 2013 the TRQ level is 77,800 tonnes.

   

   

In recent years, Canadian poultry companies have been increasingly utilising the Department of Foreign Affairs, Trade and Development''s (DFATD) Imports for Re-Export Programme (IREP).

   

   

Through IREP, Canadian chicken processors import chicken meat duty free for use in processing, provided they re-export the associated processed products. As a result, total chicken imports are about double the TRQ volume, as attributed to IREP imports.

   

   

The year 2012 marked the emergence of a new trend in the imports for re-export business, namely the use of a competing programme offered by Canada Border Services Agency (CBSA), the Duties Relief Programme. Post anticipates that by 2014 half of Canada''s imports for re-export will be part of CBSA''s programme, to the detriment of the traditional IREP.

   

   

Moving into 2014, Canada''s turkey market will remain flat, with production forecast to stay at 165,000 tonnes, virtually unchanged from 2013.