Alberta Chicken Producers Toolkit

Transcription

1 Alberta Chicken Producers Toolkit

2 About this document This document has been developed to help producers communicate key messages about their industry. What follows are short informational backgrounders that can be used to communicate with a variety of audiences.

3 who are we? Alberta s chicken farmers provide safe, locally produced, high quality chicken to consumers. We are local, family farms who are proud of our commitment to: O N - F A R M F O O D CHICKEN FARMERS OF C ANADA SAFE, SAFER, SAFEST S A F E T Y A S S U R A N C E P R O G R A M Quality & Safety Alberta s chicken farmers are audited and certified annually under national animal care and on-farm food safety programs. This is a condition of their license to operate. $ Providing Value Located throughout the province, Alberta s 240 chicken farmers produce over 128 million kg live weight of chicken annually, with a farm gate value of over $203 million. Industry Growth Alberta remains well positioned for future growth in chicken production. Alberta s population growth rate and robust economy continue to stimulate the demand for fresh chicken. Partnerships We are a part of an integrated, value chain working closely with out partners: hatcheries, processors, feed companies, researchers, and other provincial and national agriculture boards. Science & Innovation We are strongly committed to research. We support the Poultry Research Centre at the University of Alberta and contribute $125,000 to poultry research annually.

4 buying canadian Buying Canadian chicken is good for all of us. Alberta Chicken Producers is committed to maintaining consumer trust in our food system. The Canadian Consumer: says that they prefer food produced in Canada and wants to support Canadian farmers wants to serve their family a safe, nutritious meal cares about the treatment of animals on farms believes in preserving family farms and farming communities The Canadian Chicken Farmer: meets demanding animal care, food safety, labor fairness and traceability practices envied by other countries must be certified annually under a 3rd party audited On Farm Food Safety Program as a mandatory requirement to market chicken products must be certified annually under an audited Animal Care Program as a mandatory requirement to market chicken products runs a family farm that supports local communities feels the pinch of rising food costs feels the pinch of rising production costs Thank you, Canada, for supporting your local chicken farmer!

5 industry structure Alberta Chicken Producers is part of a valuechain that is committed to producing fresh, local, nutritious and delicious chicken for consumers. consumers grocery / restaurants / food service wholesalers / distributors further processors primary processors chicken farmers hatcheries hatching eggs multiplier flocks feed mills grain farmers Source: Chicken Farmers of Canada

6 supply management The Alberta chicken industry operates under a supply management system. Supply management ensures consumers are provided with a local, affordable, quality product, grown to standards they can trust. Supply Management Pillars of the Canadian Chicken Industry Farmers and industry plan production to supply quality food that meets consumer demand. Provides predictability and stability so industry stakeholders can invest with confidence. Production Planning Producer Pricing Import Controls Controlling imports of chicken allows Canadian farmers to produce enough chicken for Canada s needs. Effective tariff rate quotas on imports ensure the viability of Canada s chicken industry. Producer Price: Farmers and industry negotiate fair farm gate prices for chicken based on input costs and competitiveness in the marketplace. Retail Price: While farmers set the farm gate price, they do not set wholesale or retail prices. Grocery stores and restaurants set the market price based on what the market can bear.

7 spent fowl Spent fowl imports pose a risk to the Canadian chicken industry. Spent fowl is not subject to import controls and it can t be distinguished from the chicken from Canadian chicken producers. What is the problem? What is Spent Fowl? Laying hens older than 60 weeks that are a by product of the egg and hatching egg industries. How much Spent Fowl is imported? 106 million kg was imported in 2012 from the US. This is an increase of more than 50% in just 3 years. What is the impact on the economy? 8,900 fewer jobs created in Canada and $591 million less being contributed to the GDP by Canadian chicken farmers and processors. What is the impact on consumers? Consumers can t distinguish between this product and that of Canadian chicken farmers. What is the impact on the industry? These imports are displacing Canadian chicken production. It robs Canadian chicken farmers and processors of jobs and revenue. 1. Importers are blending 51% spent fowl with 49% non-domestic broiler meat to circumvent import controls. 2. There is outright fraud. Canada is importing more spent fowl breast meat than is produced in the entire US. 3. Spent fowl does not have to be labelled. 74% of Canadians want spent fowl to be clearly labeled. What needs to be done? The Canadian Border Services Agency must clarify blended products as chicken. The Canadian Food Inspection Agency should implement a mandatory certification process for spent fowl to stop fraud. The Canadian Food Inspection Agency should require truth in labelling to inform consumers.

8 As of May 15th, the Canadian chicken industry proactively banned all preventative use of Category I Antibiotics in chicken production. antibiotics Alberta s chicken farmers and chicken industry partners support the responsible use of antibiotics on chicken farms. We understand that consumers have questions and concerns regarding antimicrobial resistance, and we take our responsibility very seriously. Why are antibiotics used in poultry production? They maintain healthy birds and ensure a safe food supply for consumers by preventing food safety problems. Are antibiotics used to promote growth? No. Antibiotics are not growth promotants. Does antibiotic use on the farm affect public health? Use of antibiotics in any application may lead to antimicrobial resistance. Scientists are tracking human illness and comparing the bacteria in meat and poultry products to those causing human illness. Some scientific analysis show that food borne bacteria can play a role in human illness and potentially antibiotic resistance. In May 2014, the Canadian chicken industry proactively banned all preventative use of Category I Antibiotics in broiler chickens in Canada. What are Category I Antibiotics? Category I antibiotics are considered to be the highest importance to human health and are used for serious infections where no alternatives are available Category II and III antibiotics are of high and medium importance and Category IV are not used in human medicine. The banning of Category I antibiotics is part of a broader industry-wide approach to address antibiotic use in the poultry sector.

9 economic contribution Alberta s chicken farmers and the Alberta chicken industry are proud to contribute to thriving local economies and communities in Alberta and Canada ,000,000 $203 million 618 5, $53.6 million $374 million chicken farmers kg of chicken in farm cash receipts direct jobs total jobs federally inspected processors provincially inspected processors contributed in taxes contributed to Canada s GDP all accomplished with no subsidies

10 farmer s share Farm gate price is set in consultation with processors and considers costs of production and competitiveness. The farmer s share is only a fraction of what is paid by consumers. Farmer s Input Costs $1.70 per kg Labour, Veterinary, Utilities, Maintenance, Repairs, Catching, Bedding, ROI $0.57 (34%) Chick $0.35 (21%) Feed $0.78 (46%) Farmer s Share of Restaurant Menu Items: Restaurant Menu Item Item Cost Taxes (5%) Gratuity (15%) Total Cost Farmer s Share* Swiss Chalet The Keg Moxie s Moxie s 1/4 Chicken Breast Dinner (1 wing & 1 breast) Grilled Chicken Teriyaki (One 10 oz. breast) Grilled Chipotle Mango Salad (Two 5 oz. breasts) Oven Roasted Free-Run Chicken (One 8 oz breast) * Farmer s Share is derived from the Cost of the Menu Item and is based on a live price of $1.70/kg $10.46 $0.52 $1.65 $12.63 $ % $17.75 $0.89 $2.80 $21.44 $ % $17.99 $0.90 $2.83 $21.72 $ % $18.99 $0.95 $2.99 $22.93 $ % Adapted from Chicken Farmers of Canada

11 canadian & american chicken prices The price gap between Canadian and American products can be attributed to a variety of factors Did you know? On average, Canadians pay 23% more than Americans for ALL their goods and services. (source: OECD) In January 2013, the Globe and Mail commissioned a survey comparing 16 goods and services in Wal-Mart stores across the U.S. and in Canada, which found the same conclusion. Case in point: When Target announced the opening of its first stores in Canada, people expected the same prices as in the U.S. The President of Target Canada, Tony Fischer, explained why that wasn t the case: Higher transportation and fuel costs Higher wages Lack of economies of scale Different and higher tax rates The same reasons were cited in the Senate Committee on National Finance s report to the Canada-USA Price Gap.

12 a growing, sustainable business model Alberta s chicken industry is thriving, growing and full of opportunity. Starting a new chicken farm business There is always a cost associated with starting a new business in any industry. Agriculture is a capital intensive business, requiring land, machinery, barns and, in the Alberta chicken industry, quota. Chicken farmers in Alberta are not required to own quota; leasing is an option permitted for all licensed chicken producers in Alberta, including new entrants. The value of quota is not taken into account when calculating chicken farmer costs of production. The value of quota is a reflection of alternative investment options and the stability provided by supply management. Alberta Chicken Producers offers an Organic Lease Program to support certified organic producers in marketing their products. Alberta Chicken Producers offers a Direct Marketing Lease Program to producers who directly market their products to consumers. In 2013, Alberta saw 9 new entrants into the chicken industry. Our farmers are among the youngest in the country. Over 55% of Alberta Chicken farmers are first and second generation. 69% of Alberta s Chicken farmers are between the ages of 18 and 49.

13