May 14, 2004

 

 

Canadian Chicken Prices Stable
 

Retail chicken prices in Edmonton have not been boosted by the outbreak of avian flu in British Columbia and may remain unaffected, with increased supply from other provinces and the U.S.

 

Boneless, skinless chicken breasts were bargain-priced Wednesday, as low as $8.80 a kilogram at Safeway and $9.90 at Save-On-compared to the average Alberta price of $13.83 through April.

 

Although the Canadian Food Inspection Agency has ordered the destruction of 19 million chickens in the B. C. Fraser Valley, marketing boards in other provinces have relaxed their quotas.

 

B. C. farmers, which have supplied about 15 per cent of Canadian consumption, will ship the last of their birds in the next few days.

 

"Each of the provinces is trying to grow additional product to fill the gap that will be created next week, until B. C. can repopulate," said Lloyd Johnson, general manager Alberta Chicken Producers.

 

He does not expect the B. C. gap to be more than half filled by other provinces "because there is not that much idle capacity."

 

For the balance, federal authorities "have agreed to issue supplemental import permits to B. C. processors, to import whatever they need, without duty, to meet consumer demand," Johnson said.

 

Those imports will come from the United States, which already supplies 7.5 per cent of the Canadian market.

 

The latest reports from the United States Department of Agriculture suggest that U. S. supply is unlikely to push Canadian prices higher.

 

During the first two months of 2004, retail prices for fresh, whole chickens averaged only $2.64 Cdn per kg in the U. S.-compared to $5.72 per kg in Edmonton.

 

If shortages do appear, they would be spread across Canada, Johnson said, because chicken moves in all directions according to contracts between processors and national chains.

 

"I think the buyers who would be short of product would be those who are always switching suppliers," he said.

 

With the discovery of a new strain of avian flu at the Fraser Valley Duck and Goose Farm, Monday, nobody knows when B. C. chicken farmers will be allowed to repopulate. When they do start, their flocks could be rebuilt quickly, as chickens need only 21 days to hatch, plus another 42 days to reach market weight.

 

Meanwhile, Johnson suggests that the expectation of higher prices could become a self-fulfilling prophecy: "If a lot of people order more, in anticipation of a tight supply, that could create a shortage-and prices could go up."