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Canada. Chicken Meat Production Falls on Reduced Demand
11.06.2020 13:00 "Agro Perspectiva" (Kyiv) —
Following are selected highlights from a report issued by a U. S. Department of Agriculture attache in The Ottawa (Canada), the drop in chicken meat demand resulting from the closure of the food service sector during the COVID-19 pandemic was only partially offset by increased demand in the retail sector, leading to increased volumes of chicken meat placed in cold storage and wholesale price declines. Industry sources noted wholesale prices for whole birds had fallen by 20 percent, wings and chicken breasts by 30 percent, and leg-quarters by 45 percent by the end of April 2020. To rebalance Canadian supplies to match demand, the Chicken Farmers of Canada decided to cut production by over 50,000 metric tons (MT) during the two production cycles covering the May to August 2020 period. Though 2020 was expected to be another year of moderate growth for the Canadian chicken industry, FAS/Ottawa currently estimates annual chicken meat production at 1.315 million MT, one percent below the 2019 level. The reduced chicken meat production target volume for the cycle starting in May 2020 was achieved primarily through placing fewer broiler eggs in hatcheries. Hatching eggs and day-old chicks were destroyed in relatively small numbers and to varying degrees in every province. During the pandemic, several poultry plants were impacted by COVID-19 cases diagnosed among workers; a Maple Leaf plant in Ontario and two smaller poultry plants in British Columbia temporarily shuttered operations. Despite the temporary closures, chicken slaughter remained unaffected, as live birds were redirected toward other processing facilities. Industry sources indicate that wholesale prices improved in May, though have not yet returned to prepandemic levels. Demand for chicken meat has picked up, in part, with the beginning of the summer barbecue season, when chicken breasts are a popular choice for grilling.
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