Chapter 2: Industry Structure

• 2.1 Legislative framework
  
  • 2.1.1 Farm Products Marketing Agencies Act
  • 2.1.2 National Farm Products Council (NFPC)
    
• 2.2 Production structure
  
  
• 2.3 Broiler hatching egg production
  
  • 2.3.1 Canadian Broiler Hatching Egg Marketing Agency (CBHEMA)
  • 2.3.2 Production
    
• 2.4 Imports
  
• 2.5 Hatcheries

2.1 Legislative framework

2.1.1 Farm Products Marketing Agencies Act

The Farm Products Marketing Agencies Act (1970-71-72, c. 65, s. 1) was enacted in 1972 to establish the National Farm Products Marketing Council and to authorize the creation of national farm products marketing agencies. The Act was subsequently replaced by the Farm Products Agencies Act (R.S. 1985, c. F-4).

National Farm Products Council (NFPC)

http://nfpc-cnpa.gc.ca

The NFPC reports to Parliament through the Minister of Agriculture and Agri-Food. Its mission is to promote the efficiency and competitiveness of Canada’s agriculture. In addition, it supervises the activities of four Canadian marketing agencies, including the Chicken Farmers of Canada (CFC). The NFPC is composed of at least three members, and may have up to nine. At least half the Council’s members must be primary producers. The Council’s responsibilities are as follows:

• to advise the Minister on all matters relating to the establishment and operation of marketing agencies established under the Act, with a view to maintaining and promoting an efficient and competitive agriculture industry;
• to review the operations of agencies to ensure that they are functioning in accordance with the objects set out in section 21 of the Act;
• to work with agencies in promoting more effective marketing of farm products in interprovincial and export trade.
  

1.2 Production structure

2.3 Broiler hatching egg production

2.3.1 Canadian Broiler Hatching Egg Marketing Agency (CBHEMA)

http://www.cbhema.com

The CBHEMA was established in 1986 under the authority of the Farm Products Agencies Act to reflect the terms of an agreement between the federal government, provincial agriculture ministers and broiler hatching egg producers in member provinces. It is the national agency which oversees the orderly marketing of broiler hatching eggs in Canada. Member provinces are British Columbia, Alberta, Manitoba, Ontario and Quebec.

The CBHEMA Board of Directors comprises:

• five producer members: one from each of the signatory member provinces;
• two members appointed by Order in Council: one to represent the interests of consumers and the other to represent the interests of hatcheries;
• one chairperson: elected from the producer board membership who remains neutral on all issues (with a provincial alternate voting for the province).

The CBHEMA has the authority to regulate broiler hatching egg production in Canada under the supply management system. The CBHEMA is wholly funded by levies paid by producer members based on the quantities of eggs sold.

2.3.2 Production

In 2003, there were nearly 300 broiler hatching egg producers in Canada, representing some $205 million in farm cash income. These producers include both small independent operators and large integrated operations.

In Canada, broiler hatching egg production is governed by a national supply management system under which production quotas are allocated to reflect market share. The national allocation is determined on the basis of chick requirements as forecast by the commercial broiler production sector. The allocation of quota to each province is based on each province’s share of national production.

2.4 Imports

The broiler hatching egg sector is supplied from Canada and the United States. Under a bilateral agreement concluded pursuant to the Free Trade Agreement (FTA) between Canada and the United States, which came into force on January 1, 1989, it was agreed that 17.4% of domestic hatching egg production and 3.7% of domestic broiler chick production may be met from United States sources. These minimum access levels were renewed under the North American Free Trade Agreement (NAFTA) and still apply today. It is noteworthy that broiler chick imports can be increased provided that broiler hatching egg imports are reduced proportionately in a ratio of 1.27 eggs to one chick.

2.5 Hatcheries

Hatcheries are an integral link in the chicken supply chain. They come between two producer groups governed by supply management: the broiler hatching egg producers led by CBHEMA, and the broiler producers led by the CFC.

More numerous than layer hatcheries, most broiler hatcheries are dedicated solely to hatching broiler chicks.

In November 2004, there were 65 hatcheries in Canada, of which 19 were mixed, i.e. producing both broiler and layer chicks.

Source: Canadian Food Inspection Agency (CFIA) / Compiled by the AAFC Poultry Section

Broiler hatching eggs are fertile and are sent to hatcheries, where they hatch into broiler chicks 21 days later. The chicks are subsequently shipped to chicken farmers, who raise them into chickens for human consumption.

The percentage of hatching eggs that actually hatch varies (depending on fertility and a number of other factors having to do with the environment in which the eggs are kept), but as a rule is in the vicinity of 80% to 85%. In 2003, 772,671 broiler hatching eggs were incubated and 645,767 of them hatched, for a hatching rate of 83.6%.

Important Notices

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