Canada projects modest chicken production growth next year with output likely to reach 1.315 million metric tons, 2 percent above estimated 2020, according to USDA’s GAIN report from Ottawa this week.
FAS/Canada estimates 2020 chicken meat production at 1.29 million metric tons, down 3-percent from 2019. Food service activity was down significantly through the first four months of the COVID-19 pandemic response, and the associated drop in food service demand was only partially offset by increased retail demand.
Following the July 1, 2020, entry into force of the United States-Mexico-Canada Agreement (USMCA), Canadian chicken meat imports are comprised of three tariff rate quotas (TRQs): the global TRQ, now based on the fixed market access volume negotiated at the World Trade Organization (WTO); the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) TRQ; and the USMCA TRQ. The combined volume of chicken meat imported under these three TRQs is projected to reach nearly 105,000 MT in 2021.
In addition to TRQ imports, Canadian poultry processing and further-processing companies are expected to import 45,000 metric tons of chicken meat under Canada’s two import for re-export programs in 2020. Nearly all of the finished products produced under these programs would be exported to the United States. The full GAIN report can be viewed by following the link.
