Monday, July 15, 2013

Quebec poultry board cleans house


All of the top executives of the Quebec poultry marketing board are new, apparently a rebellion from the ranks against the Ontario-Quebec ban on interprovincial trade in live chicken that brought an abrupt end to premiums many had been garnering from processors.

Out-of-province processors were offering premiums over the official cost-of-production price set by the marketing boards in order to get enough chickens to meet their demand.

That prompted others to match the premiums to retain their supplies.

About 10 per cent of the chickens from each province was going to processors in the other province at the peak of the inter-provincial trade.

The ban on inter-provincial trade went into effect last year and has had many repercussions, such as CAMI International Poultry Inc. of Welland, Ont., being left with only about a quarter of its volume of chicken to meet the Asian-market demand in the Greater Toronto area for Hong-Kong dressed birds (feet and heads left on) and a lot of grumbling in the ranks about perceived problems with the marketing boards.

The new leaders of Les Élevateurs de Volailles du Quebec, which represents both chicken and turkey quota holders, are president Pierre-Luc Leblanc, vice-presidents Lise Saint George and Martin Lemieux and executive committee members Jean-Paul Bouchard and Louis-Phillippe Rouleau.

There are indications that frustrations are rising at the national level, including tensions between the federal government’s supervisory body, the Farm Products Council of Canada, and the Chicken Farmers of Canada national marketing agency.

The Chicken Farmers of Canada is also complaining about sharp increases in imports of older birds that the Canadian farmers think ought to face a tariff of about 285 per cent, but which Canadian Border Services Agency staff and those at the Department of Foreign Affairs and International Trade have decided fall outside of the tariff protection.

They are being classified as “spent fowl” which are usually egg-laying birds that have reached the end of their productive lives.

There are also concerns about the increasing number of chicken-containing products that are skirting tariffs, and the sharp increase in import volumes once a product has been declared exempt from the tariffs.

The Canadian chicken farmers depend on tariffs to enable them to run supply management, meaning deciding first how much money they need to make a reasonable profit, then limiting production so they can maintain those prices.