Monday, June 8, 2015

Chicken production increasing

Chicken production to the end of April increased by 3.3 per cent over a year ago, but is poised to increase at a faster pace for the balance of the year.

The national supply-management agency is aiming for an increase of 5.07 per cent in the six-week period that ended May 20 and for an increase of 3.6 per cent in the period that ends June 24.
Imports increased by more than five per cent.

Producer prices are running seven cents a kilogram lower than a year ago, mainly because of pricing orders issued by the Ontario Farm Products Marketing Commission. They are under appeal.

While producer prices are down, wholesale prices measured as a composite are up by half of one per cent, reports Chicken Farmers of Canada.

The whole-bird complex price is up by 2.9 per cent.

Retail prices for boneless, skinless chicken breasts are up sharply (by 14 per cent) in Ontario, but down in all other provinces, led by a 4.3 per cent decline in Quebec.

The Ontario price in April averaged $13.05 per kilogram, much lower than British Columbia at  $13.70, but much higher than Quebec at $11.49.

National storage stocks increased by 7.7 per cent; Ontario was up by 19.9 per cent, but Quebec was down by12.8 per cent.

If that pattern holds, Ontario will be under pressure to back off its push for greater production increases than the national average.

That’s a new policy that comes after decades of Ontario complaints about how the national pie is carved into provincial shares. The new deal is, however, under appeal by processors in the Western provinces.

The markets In the United States are in flux as companies try to assess the fallout from avian influenza.

So far the losses have been greater in the turkey and laying hen sectors than on chicken farms.

The egg situation is, however, serious enough to generate major price increases for eggs for processing.