Manitoba egg farmers are taking the lead in producing eggs for processing.
But a new study points out they may be at a disadvantage to their western neighbors when it comes to costs of production.
The $30,000 study was done by the George Morris Centre, an agricultural research and policy group based in Guelph, Ont. The study was paid for by the Manitoba Rural Adaptation Council, the five major banks and Manitoba’s credit unions.
The study compared production costs for large-scale operations in five provinces and five major egg-producing American states.
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It examined the potential for expansion for industrial processors, which use egg components in their products.
These eggs are generally priced at United States values. Currently in Manitoba, they go for about 70 cents per dozen, but can drop as low as 40 cents at times.
Competitive with U.S.
The study found that Western Canada is cost-competitive with Midwest U.S. states, said Heather Gregory, spokesperson for MRAC.
But the general manager of Manitoba Egg Producers said the study doesn’t account for major differences in egg production between Canada and the U.S.
“I don’t think the study should be suggesting to anybody that we’re ready to take on the world,” said Penny Kelly.
Egg barns in the U.S. are generally owned by egg processors. They are large and concentrated.
In Canada, marketing boards and quota systems organize smaller operations to try to match supply and demand.
The study also ignores the “fairly extensive infrastructure” built in Manitoba to supply Canada’s largest egg processor, Inovatech, located in Winnipeg.
Kelly said Manitoba producers are ready to fill the industrial market.
“I don’t see that in Saskatchewan and Alberta at this point,” she said.
Manitoba’s industry is also larger, accounting for 11.4 percent of Canadian production. Alberta accounts for 8.7 percent and Saskatchewan 4.5 percent.
Tim Wiens, chair of Saskatchewan Egg Producers, said he wasn’t surprised to see a large prairie egg farm could compete with a similar operation in the United States.
But Saskatchewan egg producers have been “somewhat wary” of expanding for processors.
“That’s the Saskatchewan way, I’d have to say,” said Wiens, adding the province has also fallen behind in cattle, chicken and hog production.
Wiens said he thinks producers have to look at meeting processors’ needs, but shouldn’t throw out the benefits of the current production system.
The study looked at the economics of million-hen operations, representing barn complexes in the U.S., and 150,000-hen barns.
In Manitoba, a group of farmers recently built a barn of similar size, and another is on its way. In Saskatchewan, one complex houses about 130,000 hens owned by several farmers.
But the average size barn in both provinces hovers somewhere around 10,000 hens.
In the U.S., 94 percent of hens are on 345 operations.
