Broiler hatching egg farmers have put to rest a decade-long discussion about how to divvy up production.
The change has put Manitoba producers in a celebratory mood because it means they will all get to grow more of the fertilized eggs they sell to hatcheries.
Historically, Manitoba hatcheries imported almost 25 percent of their eggs from the United States.
But by 2002, Manitoba farmers will get to produce 80 percent of what hatcheries need.
Dave Loewen, a hatching egg farmer from Carberry, Man., said that will mean 24,000 more hens to produce three million more hatching eggs in the province.
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“It will allow several of our producers to expand,” said Loewen, who is chair of the Manitoba Broiler Hatching Egg Commission.
In 1999, 14 percent more breeder hens were placed in the province than in 1998 because of the growth in the broiler hen sector. Another eight percent jump is forecast for 2000.
Loewen said a new contract system between farmers and hatcheries will also add stability to the industry. The contracts are to be signed by June 1.
The commission also successfully defended a rule that states existing producers must be given the chance to grow their flocks to at least 10,000 hens before new producers are allowed to build hatching egg barns.
Last year, the average Manitoba flock had 6,800 birds, which was half the Canadian average.
Manitoba’s 38 hatching egg flocks account for farmgate receipts of $7 million.
The dispute over quota allocation came to a head last summer when Ontario’s hatching egg agency filed a formal complaint with the National Farm Products Council.
The five provinces that produce hatching eggs came to an agreement on Feb. 15.
Hatcheries in British Columbia will take more of the imports that Canada is required to accept under trade rules and give up some domestic production.
Ontario and Manitoba gain domestic production and will take fewer imports, explained Martine Mercier, chair of the Canadian Broiler Hatching Egg Marketing Agency.
Mercier said the change addresses the historical imbalance between production and imports among the provinces.
“We feel that it will (solve the problems) because we will not need to be haggling and arguing amongst ourselves,” said Mercier.
Quota, levy not set
The agency started off the new year without quota and levy orders because of the allocation discussions.
Mercier said without the agreement, the broiler hatching egg marketing agency would have been put at risk.
Without the agency and a strong lobby during the upcoming World Trade Organization negotiations, farmers would face increased pressure from imported hatching eggs, she said.
Mercier said the new agreement leaves Quebec import levels around 20 percent.
Alberta farmers will also be untouched by the new agreement. Import levels in the province will remain around six percent.
George Balash, an agency director from Spedden, Alta., said the Alberta government and the 52 hatching egg producers in the province did not want to decrease production.
When Alberta agreed to join supply management in the late 1980s, it did so on the condition its imports would stay at 0.5 percent.
In 1994, the province relented, and agreed to import up to 6.5 percent of hatcheries’ requirements.
“We just felt that’s as high as we want to go,” Balash said.
