Chicken Farmers of Canada has signed a new quota allocation agreement to increase production across the country.
All member provinces will be allowed to produce more, but provinces like Alberta and Ontario with faster growing populations could be allocated more quota.
The debate over providing more quota to some parts of the country, known as differential growth, had been on the table for six years.
Alberta Chicken Producers had long protested the allocation system based on national supply rather than taking into account higher demand in one province. Last year it withdrew from the national program but has agreed to the new scheme, said a release from Chicken Farmers of Canada Nov. 20.
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Under the new supply management agreement, all provinces will share in future growth. The scheme covers the need to meet future growth in the next five years by factoring in 55 percent of future production based on provincial comparative advantage factors.
Setting allocation involves chicken farmers meeting every eight weeks with processors, retailers and the restaurant trade to decide how much poultry is needed. Under the supply management system, this ensures the right amount of Canadian chicken is available. They also consider current demand for chicken and all other meats to keep the supply and prices stable.
