It is little known that in good times, as in bad ones, it is our domestic Canadian market that represents the major source of revenue for our farmers and the food industry. Much too often people use the expression “Canada is a trading nation”, to the point where we’ve come to believe that foreigners buy most of what is produced in this country. That may be true for some industries, but it does not accurately represent the agriculture and agri-food sectors.

The biggest market for Canada’s farmers and processors is Canada. The Canadian agriculture and agri-food market is a vibrant one that encourages growth in value-added processing. Canada’s farmers are the foundation of that growth.

In net terms, 70% of the value of all the food produced in Canada (counting both the farm level production and the food processing industry) is sold right here to our fellow Canadians. This calculation is based on data provided by the Food and Value Chain Bureau of Agriculture and Agri-Food Canada and accounts for the fact that some of the primary production is used as an input in food processing.

Only 30% of Canadian agriculture and agri-food products are actually exported. Of the Canadian production, 20% goes to our NAFTA partners (Mexico and United States) with whom we enjoy free trade relations and a preferential market access, and the remaining 10% is exported throughout the rest of the world.

It is safe to say that our Canadian consumers are supporting tens of thousands of jobs in farming and food processing on a continuous basis, dire times or not, and for that we are so grateful! Canada’s chicken farmers are proud to raise the quality chicken that Canadians trust.

We received a question about U.S. chicken in our blog email.  Since the person writing to us didn’t provide a return email address, we’ve turned our response into a blog post. The writer was concerned about something she’d read about Canada having a majority of US fresh product on Canadian shelves.  She asked about how much chicken was imported and how it is used, as well as how she can ensure that the fresh chicken she’s buying at the grocery store is, in fact, Canadian.

We were concerned about what she’d read, as it’s really not true. In fact, the vast majority of chicken raised in Canada is sold in Canada.  The Canadian chicken industry operates under a system called  “supply management”, farmers work together to match what they grow with what consumers demand. Under supply management, there are establish legal maximums in terms of chicken that is imported into Canada – we only import roughly about 7.5% of our total production from all over the world – and most of that isn’t fresh product.

It’s not often that the fresh chicken you’d buy in your grocery store would be from anywhere other than Canada.

Most of what we import is in the form of either a) chicken that is being cooked into a product for export (called Import to Re-Export) – and never sees Canadian shelves or b) is included in already further-processed product, which means that the chicken would have been cooked and added to something – like soup, TV dinners, etc. or is included in a frozen product, like some chicken wings, etc.  While there may be some fresh U.S. product on Canadian shelves, it is far and away not the norm.

In some cases, hatcheries may provide day-old chicks from the U.S. to farmers, but those chickens are then raised in Canada and according to Canadian standards.

While there are differences between the Canadian and U.S. approaches to chicken production, many of the same standards do apply. For example, hormone and steroid use in chicken production in both our countries is illegal and has been since the 1960s.

As for ensuring that your chicken is Canadian – if you’re looking for assurances beyond these, you should always feel free to speak with the meat managers at your grocery store. You can also contact the processor from which you’re purchasing your chicken (Maple Leaf, Maple Lodge, Lillydale, etc. – or, in the case of a ‘store’ brand, ask your meat manager where that chicken is processed – it will be from a Canadian processor).

A lot of people don’t know that Canada’s supply management system is also a monitoring system. For example, it allows the chicken industry to ensure that farmers do not overpopulate their barns in order to secure greater return for their birds. All chicken farmers are held to a maximum quota, and quota can be purchased only if farmers have the square footage required to properly care for their birds.

Moreover, our system allows us to remain in consistent communication with each and every one of our 2,800 farmers, giving us the capacity to get messages to all our farmers within a few hours, if required. This is especially important if any animal diseases are suspected.

As a result of supply management, most farmers own their product before it is sent to processors, ensuring that they have a vested interest in the proper care and handling of their birds. Otherwise, they will not see a financial return. For example, any product being found with bruises would be condemned and the farmer would not receive payment for it.

It is good economic sense, as well as common sense, to take excellent care of our birds.  Supply management is just one of the ways Chicken Farmers of Canada is working to ensure that this is done.

Canada’s chicken farmers operate under a system called supply management. You may have heard of it, but what does it mean, and how does it affect you?

Supply management is a system that matches production to Canadian demand, allows farmers to receive a fair price from the marketplace without relying on taxpayer dollars, eliminates major fluctuations in prices at the farm, processing or distribution level, and ensures an efficient and secure food supply that respects Canadian sanitation and health standards.

With supply management, farmers work together to match what they grow with what consumers need and want. Consumers get good value for their money: a reliable supply of quality food at reasonable prices. Farmers receive their returns from the marketplace without relying on subsidies or taxpayer dollars.

Supply management is founded on three critical and equally important pillars. If one pillar is weakened, supply management as a whole is weakened.

Import Controls Pillar

Matching supply with demand for food allows Canadians to count on stable food prices. This, along with the predictability of imports, ensures that it is possible to make a living in agriculture.

Producer Pricing Pillar

In Canada, farmers collectively negotiate minimum farm gate prices for milk, poultry and eggs. By acting together, farmers negotiate a fair price for their products based on what it costs to produce them.

Farmers do not set retail prices and have no say in the price being paid at the retail level.

Production Planning Pillar

Under supply management, farmers plan their production to produce a steady supply of quality food that efficiently reflects changes in consumer demand. This prevents sudden price shifts as products move from farm to plate.

Did you know that the  dairy, poultry and egg Industries:

• contribute a net $13.7 billion to the GDP
• generate $7.4 billion in farm cash receipts
• sustain more than $43 billion of economic activity
• employ more than 215,000 Canadians throughout the country

Do you have questions about supply management?  Post them in the comments and we’ll do our best to answer them.