Inadequate formula | Producers in Alberta want increased quota to reflect population growth
RED DEER — Alberta chicken farmers want to expand production, but they feel stymied by the national board that sets quota allotments.
The province imports about nine pounds of chicken meat per person to fill added demand. Producers say they could fill that gap if their quota was increased.
Processors move fresh and frozen chicken across the country to fill retail and food service demands, but some Alberta firms have said they could do more if local product was available.
“The nature of retail contracts are such, it is very, very difficult and probably impossible to simply limit chicken production and consumption in one province,” said Scott Wiens of Chicken Farmers of Alberta during the organization’s annual meeting in Red Deer Feb. 27.
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However, change is needed, he added.
The national supply management system uses a formula to set the allocation for each province, and Alberta feels shortchanged.
“We would like a formula that represents the population shift,” he said.
Allocation changes have been requested since 2007 as parts of the country’s population grew, but little progress has been made after numerous meetings, said Chicken Farmers of Alberta board member David Hyink.
“In those early years, we were told now is not a good time and we respected those opinions,” he said.
Alberta wanted an additional 3.5 million kilograms by 2020. Ontario has also requested more to address its growth.
The provincial board has since met with the Alberta agriculture minister to take steps to withdraw from the federal-provincial agreement signed in 2001 to continue the supply management system for chicken across Canada.
If Alberta pulled out, that could topple the supply managed system because other provinces may follow its lead, said David Fuller, retiring chair of Chicken Farmers of Canada.
Wiens does not agree supply management would fall apart if Alberta went its own way.
“When you have two divergent opinions, that is the opportunity for great discussion,” Wiens said.
Fuller asked Alberta producers to allow the CFC board to find a solution, but it will likely not be what they want.
He said the major problem is that chicken production is a mature industry with less than one percent growth per year. Alberta cannot have more and ask the other provinces to take less.
“Supply management was never based on allocation by population,” said Fuller.
A 14 member board sets allocation based on market demands. It includes 10 farmers as well as processors, retailers and food service representatives.
The difference between production and population is less than two percent for Alberta, while Ontario is at five percent.
Those two provinces would get all the growth and others would see no increases for the next seven years.