Last year’s chicken industry agreement creating a national production allocation system to allow expanded production on the Prairies is working well.
Chicken Farmers of Canada statistics to the middle of July show that production increases on the Prairies this year range from 12 percent in Alberta to more than 16 percent in Manitoba and Saskatchewan.
Even considering that it is a percentage increase on a relatively small production base, and that chicken production is up across Canada this year, the prairie results are impressive.
“It is working as it is supposed to,” Susan Jones of Chicken Farmers of Canada said last week.
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Demand is increasing in the West and the system is responding.
A year ago, the production control system was revamped to set a national cap and three regional caps. Within the regional limit, provinces with growing demand can expand up to eight percent per year if there is unanimous agreement to allow that to happen. Unanimous agreement also allows the growth limits to be altered in mid-year.
And with national agreement, high-growth regions can produce an additional 1.5 percent during a two-month production period.
It was all an attempt to respond to complaints that the old system based on historic market share was stifling prairie diversification into a value-added industry like chicken.
Then late last year, a separate deal was worked out among members of Chicken Farmers of Canada that set the stage for an even more aggressive increase in Saskatchewan production. The province received an “exceptional circumstances” quota increase, which industry officials said could lead to a near doubling of the industry within four years.
Under the deal, the provincial production base is to increase 15 percent this year, 25 percent next year, 20 percent in 2001 and 15 percent in 2002.
The new rules ended prairie talk about leaving the national supply management system, at least until they see if the promises bear fruit. Last week’s 1999 production numbers to the middle of July suggested they are.
Alberta production was up 11.9 percent over the same period last year, to 42.2 million kilograms eviscerated.
Saskatchewan production is up almost 1.5 million kg to 10.3 million, a 16.3 percent increase.
Manitoba’s increase was even more dramatic – up 16.7 percent and 2.8 million kg to 19.5 million.
Jones said the prairie expansion is sparked by increased consumer demand and expanded processing capacity in Alberta and the aftermath of disease in the flock last year.
