Chapter 6: International Trade

• 6.1 Imports
  
  • 6.1.1 Rules for importing turkey into Canada
  • 6.1.2 The Import Control List (ICL)
  • 6.1.3 Supplementary imports
  • 6.1.4 Composition ot Canadian Imports
  • 6.1.5 World Imports
    
    
• 6.2 Exports
  
  • 6.2.1 Export trends
  • 6.2.2 Destination of Canadian turkey exports

6.1 Imports

6.1.1 Rules for importing turkey into Canada

The turkey Tariff Rate Quota (TRQ) is calculated at the higher of 3.5% of the current year's production quota (which includes commercial quota, multiplier breeder quota, and primary quota) as estimated by the Canadian Turkey Marketing Agency (CTMA)in accordance with NAFTA, or the WTO access level. In 2004, the WTO access level is 5,880,000 kilograms, which is higher than 3.5% (approximately 5,300,000kg) of the current year's estimated production quota, and will thus prevail.

Turkey imports are divided into products which are on the Import Control List (ICL) and products not on this list (non-ICL): the first group is subject to tariff rate quotas (TRQs), while the other group is not.

A tariff rate quota has three main components: a low rate of duty, a minimum access level (or "import access quantity") for entry at the low entry rate, and a high rate of duty.

The import access level benefiting from the reduced rates of duty, or “within access commitment” rates of duty, is allocated to all Canadian-resident firms that are current participants in the turkey industry, subject to the criteria outlined in the Notice to Importers published by International Trade Canada.

The turkey TRQ will be allocated in priority to two groups: to traditional allocation holders (i.e., firms importing turkey before the introduction of import controls in 1974) to the extent of their initial allocation, as adjusted since, where necessary, e.g., for under-utilization; and to eligible processors producing non-ICL turkey products (such as TV dinners) to the extent of their needs for such production. The remaining "unallocated pool", if any, will be used to meet specific needs, including “imports to compete” and imports to accommodate shortages,

Import permits are required for each shipment of turkey and turkey products imported into Canada that are on the ICL. They are identified by a product numbers (known as the Harmonized System of Codes or HS Codes) and include heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 in the list of tariff provisions set out in the Schedule to the Customs Tariff. Generally, turkey products that are identified as "specially defined mixtures" of tariff Nos. 1602.31.11 and 1602.31.92 are exempted from the ICL. Examples of such products include: turkey cordon bleu, breaded breast of turkey cordon bleu, turkey Kiev , TV dinners, etc (see non-ICL box below).

To obtain more information regarding rules and procedures to follow in order to import turkey into Canada , please consult the Export and Import Controls Bureau of International Trade Canada website at the following address: http://www.dfait-maeci.gc.ca/trade/eicb

6.1.2 The Import Control List (ICL)

As mentioned above, turkey imports comprise products that are on the Import Control List and others that are not. The following boxes identify these products:

6.1.3 Supplementary imports

The Minister of International Trade Canada may, at his/her discretion, authorize the importation of chicken and chicken products and turkey and turkey products in excess of the import access quantity, particularly if it is decided that the importation of these products is required to serve overall Canadian market needs.

The various categories of supplementary import permits, each subject to different policies and procedures, are listed below.

• Domestic Market Shortages
• For the manufacturing of products exempt from the Import Control List (also known as FTA products)
• For Further Processing and Re-export (Import For Re-export Program or IREP)
• Test marketing
• Extraordinary or unusual circumstances as determined on an individual merits by International Trade Canada

In 2003, a total of 1,526,583 kg of turkey was imported under supplementary import permits. The Import for Re-export Program was responsible for 93% of these imports.

6.1.4 Composition of Canadian Imports

Imports of turkey products into Canada totalled 3,506,761 kg (actual weight) in 2003. This total more than doubles if we include further processed products and reaches 7,020,935 kg. The tables below list the different cuts of turkey and further processed products that were imported in 2003.

Source: CFIA / Data compiled by the AAFC Poultry Section

Source: CFIA / Data compiled by the AAFC Poultry Section

6.1.5 World Imports

According to the Food and Agriculture Organization of the United Nations, world turkey meat imports totalled 918,784 metric tons in 2003 for a value of $1,354,724 US. Canada ranked 38 th with 0.3% of the quantity of turkey meat that was imported in the world that year. The following table lists the countries that imported more than 5,000 metric tons of turkey meat in 2003.

6.2 Exports

6.2.1 Export trends

Turkey exports have been experiencing a constant increase over the last 20 years, going from 336,000 kg in 1983 to 18,488,000 kg in 2003. This increase can be explained in part by the increasing demand from emerging markets, mostly in Asia and Eastern Europe, and by the WTO agreement on agriculture that came into effect on January 1, 1995 that opened new markets for Canadian turkey products. Graph 5 shows this growth in Canadian turkey exports.

Graph 5 - Turkey Exports 1983-2003*

* The exports to the United States being not available for 2001 and 2002, import data from the USDA were used to complete the total for the two years.

Source: CFIA / Compiled by the AAFC Poultry Section

Canada exports a variety of chicken products; as indicated in Table 17, however, legs account for over half the total. This is attributable to the fact that Canadian consumers tend to prefer white meat, and as a result dark meat is in oversupply on the domestic market.

Source: CFIA / Data compiled by the AAFC Poultry Section

6.2.2 Destination of Canadian turkey exports

Year after year, Canada exports turkey products to approximately 50 countries dispersed all over the globe although the bulk of these exports are destined to a limited number of countries. In 2003, South Africa , the main destination for Canadian turkey exports, accounting for 27% of total exports. The 5 main markets (South Africa, Russia, United States, the Philippines and Hong Kong) imported 70% of Canadian turkey exports and this percentage grows to 82% if we consider the 10 main markets. The following table and graph present Canadian turkey exports broken down by destination.

Source: CFIA / Data compiled by the AAFC Poultry Section

Graph 4 - Canadian Turkey Exports by Region - 2003

Source: CFIA / Compiled by the AAFC Poultry Section

Foot notes:
⁶ Exclusive of further processed chicken products
⁷ In 2003, Brazil ranked second among the world's chicken-exporting countries in terms of quantity exported, but ranked first in terms of the value of its exports, for the first time ever.

Important Notices

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