April 7, 2004

Canada Poultry Prices Set To Rise On Supply Shortage
 

Poultry prices in Canada could rise substantially following the supply shortage caused by the culling of 19 million chickens in British Columbia as a result of the bird flu outbreak.

Chicken producers from Alberta are meeting with their provincial counterparts from across Canada in Ottawa today to discuss how to ramp up chicken production to fill the void caused by the killing of 19 million chickens.

"All the provincial boards and the Canadian Restaurant Association and processors are gathering to talk about avian influenza and how we can meet the market so there are no shortages," Lloyd Johnston, general manager of the Alberta Chicken Producers said Monday.

The depopulation of 19 million birds in B.C.'s Fraser Valley in a bid to wipe out the contagious avian flu leaves only about 10 per cent of the B.C. poultry industry untouched.

It means increased demand for remaining Canadian birds and some increased prices, especially for the most popular cuts such as fresh chicken breasts, Johnston said.

"It's going to be a huge challenge, but I'm reasonably optimistic that we can, collectively across this country, meet the demand," Johnston said in an interview from Ottawa.

Alberta's 288 chicken farmers produce about seven or eight million chickens a year and serve 92 per cent of the Alberta market.

Because of long-term contracts, there will be no increase in prices paid to Alberta producers for as long as seven months, said Aaron Falkenberg, chairman of the Alberta Chicken Producers.

But that has no effect on what retailers charge the consumer, Falkenberg said.