Wednesday, July 10, 2013

Chicken giants squeeze the market

Here we go again.

Chicken production is up by 2.8 per cent so far this year, imports are up by 4.2 per cent, but disappearance is down by 2.3 per cent.

And so inventories were six million kilograms greater this June 1 than a year ago They totalled 34.9 million kilograms in freezers.

The big companies complained about these unsold chickens costing them money to hold in storage, so     when the directors of Chicken Farmers of Canada met recently to ponder how much chicken to produce this fall, they were exceedingly cautious.

After taking into account the many factors that go into determining how much can be produced, Ontario ended up with a figure that is lower for this fall than last year.

How can this be?

We have two significant markets in Ontario that are short. CAMI International Poultry Inc. in Welland has less than a quarter of the chickens it needs to satisfy its Asian-market customers for Hong Kong dressed birds - i.e. head and feet on.

There is nobody processing kosher chicken in Ontario since Sargent Farms bought the plant supply quota held by Chai Kosher Poultry Ltd. of Toronto.

If the processors are so glutted with chicken, how come Sargent Farms is buying plant-supply quota? And was it the only large-volume processor shopping for plant-supply quota?

Supply management for chicken is in desperate need of a major overhaul.

But other than the Ontario Independent Poultry Processors association, there seems to be no leadership available to lead the industry beyond navel-gazing mediocrity, and from sailing over the cliff when tariff protections begin to significantly decline as a result of international trade negotiations.

We have a new Ontario agriculture minister who happens to be the premier. She can appoint the Ontario Farm Products Marketing Commission's directors who are responsible for supervising the marketing boards.

But it seems those in authority are, ummmm, CHICKEN!!!