Poultry Marketplace

Profile of The Canadian Turkey Industry

Chapter 6: Canadian Turkey Market

• INDEX
  
  
• CHAPTER 1: Introduction
  
  
• CHAPTER 2: World Turkey Production and Trade
  
  
• CHAPTER 3: Canadian Turkey Production and Supply Structure
  
  
• CHAPTER 4: Turkey Production in Canada
  
  
• CHAPTER 5: Processing and Further Processing
  
  
• CHAPTER 6: Canadian Turkey Market
  • 6.1 Domestic Turkey Consumption in Canada
    
  • 6.2 Factors Influencing Canadian Demand for Turkey
    
  • 6.3 Inter-provincial Trade in Turkey
    
  • 6.4 Canadian Imports of Turkey Meat and Turkey Products
    
  • 6.5 Canadian Exports of Turkey Meat and Turkey Products
    
  • 6.6 Trade Balance in Turkey and Turkey Products
    
    
• ANNEX A: The Import Control List
  
  
• Tables and Figures
  
  
• Bibliography

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6.1. Domestic Turkey Consumption in Canada

As Figure 11 shows, per-capita turkey consumption has remained quite stable over the past 20 years, from 4.12 kg in 1986 to 4.3 kg in 2006, which represents an increase of 4.3%.  By way of comparison, per-capita beef and pork consumption declined by 17% and 16% respectively over the same period.

Figure 11 - Per-capita Consumption of Turkey in Canada – 1986-2006
(eviscerated weight)

Source:  Statistics Canada.

Between 1986 and 2006, the average Canadian per capita consumption of meat increased from 93.7 to 95.1 kg¹ annually.  The total quantity of meat consumed was very stable, with increases in the consumption of one type of meat being offset, as a rule, by declines in the consumption of some other type.  Accordingly, it is noteworthy that increased consumption of poultry in general in Canada has occurred just as beef and pork consumption has been declining.

Beef consumption peaked in the mid-1970s and has been declining steadily ever since (between 1986 and 2006, per-capita beef consumption fell by 17%).  Pork consumption has been fairly stable since the mid-1970s, albeit with some fluctuations.  Conversely, as we have seen, poultry consumption per capita has grown substantially during these years.

In 2006, the various meats ranked by per-capita consumption were as follows:  chicken, 33.3 kg; beef, 31.74 kg; pork, 23.3 kg; turkey, 4.4 kg; mature chicken, 1.5 kg; veal 1.1 kg; mutton and lamb, 1.2 kg.  The data on consumption used for purposes of these comparisons are expressed in terms of eviscerated weight in the case of poultry and carcass weight for beef, pork, veal and lamb.

Figure 12 shows per-capita consumption of turkey compared to other leading meats.

Figure 12 - Consumption of Turkey versus Other Meats
(per capita – Canada)

 

A comparison with other poultry meats reveals that per-capita consumption of turkey remained in the 3.9-4.5 kg range between 1985 and 2005, with annual per-capita consumption averaging 4.4 kg.  Similarly, mature chicken consumption remained stable, and has even declined slightly in recent years.  Between 1986 and 2006, per-capita consumption of mature chicken remained in the 1.0-2.0 kg range, with annual average consumption at 1.7 kg. Figure 13 shows the growth in poultry consumption over the past 20 years.

Figure 13 - Consumption of Turkey and Other Poultry Meats
(per capita – Canada)

Source:  Statistics Canada, Catalogue No. 21-020.

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6.2 Factors Influencing Canadian Demand for Turkey

 

Turkey consumption (on a per capita basis) has been relatively stable over the past 20 years. According to the CTMA, total domestic turkey and turkey product consumption was 105.6 million kilograms in 1986 compared to 138.5 million kilograms in 2006, which represents an increase of 31%. This increase has been due in part to the country’s population growth as well as an increasing prevalence of turkey in the commercial food service industry (i.e. sandwiches and subs) as well as growth the prepared meals segment of the market (i.e. frozen dinners).

Overall, Canadian’s tastes have changed towards leaner meats like chicken and turkey primarily due to an increase in health awareness and the overall health benefits they provide. Compared to red meats, turkey is perceived as much leaner and therefore healthier. There is also an increased presence of substitute products containing turkey (i.e. turkey burgers or subs), often seen as a healthier choice compared to its red meat alternative. The increase consumption of these turkey alternatives is also strongly related to the shift towards healthier choices made by Canadian consumers.

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6.3 Inter-provincial Trade in Turkey

 

Inter-provincial movement of turkey in Canada is integral to the dynamic of supply and demand of turkey across its various regions. In 2006, the total inter-provincial movement of turkey totalled approximately 9.2 million kg which represents 5.7% of the total amount of turkey produced in Canada in 2006.

Table 15 - Inter-provincial Movements of Turkey in 2006

Movements	Quantity (kg evis.)	Inter-provincial movements as a percentage of total production
Inter-provincial Movements of Turkey	9.2 million
Total Turkey Production	162.6 million	5.70%

Source: CTMA, CFIA, as compiled by AAFC

 

In 2006, Western Canada supplied the largest amount of turkey for inter-provincial trade purposes providing 5,246,926 kg primarily to other Western Provinces.

Figure 14 - Inter-provincial Movement of Live Turkey for Slaughter (2006)

Source: CFIA, as compiled by AAFC

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6.4 Canadian Imports of Turkey Meat and Turkey Products

 

Companies wishing to export turkey and their products to Canada are governed primarily by two trade agreements: the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). Under current levels of domestic turkey production, the import access levels set by the WTO are higher than those of under NAFTA, and thus the former takes precedence over the latter. Under WTO commitments, the annual import access level for turkey is set at 5,588,000 kilograms (eviscerated weight).

Turkey imports are divided into products that 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. Turkey was first placed on the ICL in May 1974. (For a complete list of turkey products listed on the ICL as well as products on non-ICL, please refer to Annex A)

A TRQ 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 businesses located in Canada. Businesses with the authority to import can apply for import permits which are usually issued on demand to quota holders up to their import quota limits.

There are two groups, or pools, of importers that maintain import permits (quota holders); the first of these groups falls within the traditional pool allocation (i.e. firms importing turkey prior to the imposition of import controls in 1974) which maintain quota for ICL products. The remaining group (Non-ICL – FTA portion) hold quota for non-ICL products (i.e. TV dinners). In 2006 there were 13 permit holders in the traditional pool and 22 in the non-ICL- FTA portion pool.
Imports of turkey into Canada totalled 3,796,772 kg in 2006 or 9,211,258 kg if further processed turkey products are included². The tables below show the types of turkey products imported during the 2001-2006 period.

Table 16 - Imports of Turkey
(kg)

		2001	2002	2003	2004	2005	2006
Live (evisc. weight)		0	12,144	15,161	0	0	0
Whole carcasses		1,624	142,834	48,076	115,369	259,665	78,572
Parts	Bone In Breasts	175,990	203,170	105,865	163,106	127,209	73,755
	Bone In Legs	0	0	0	0	0	0
	Bone In Parts	20,316	0	8,135	1,248	10,632	17,748
	Bone In Wings	0	0	0	0	0	0
	Boneless Breasts	1,926,772	1,853,359	2,289,299	3,136,133	3,222,693	2,576,467
	Boneless Parts	682,887	707,938	506,791	645,701	2,734,253	517,338
Prepared	Cooked (bone in)	124,721	137,055	19,201	63,758	60,148	52,330
	Cooked (boneless)	640,741	750,737	511,562	482,219	494,144	479,582
Other	Other (bone in)	0	0	0	0	0	0
	Other (boneless)	0	4,069	2,671	365	18,743	980
TOTAL		3,375,121	3,453,158	3,329,524	4,328,176	6,529,981	3,796,772

Source: CFIA, as compiled by AAFC

Table 17 - Further Processed Turkey Products Imported into Canada
(kg)

	2001	2002	2003	2004	2005	2006
Dinners and pies	913,794	2,744,371	3,300,475	4,163,043	4,667,483	5,030,661
Rolls	0	0	0	0	0	0
Soups	95,005	113,408	78,398	79,502	86,943	99,407
Other	134,500	158,607	135,301	134,372	239,723	284,418
TOTAL	1,143,299	3,016,386	3,514,174	4,376,917	4,994,149	5,414,486

Source: CFIA, as compiled by AAFC

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6.5 Canadian Exports of Turkey Meat and Turkey Products

Canadian exports of turkey and turkey products have increased significantly over the past twenty years. In 1986 total exports weighed in at 2,169,000 kg while 2006 figures report 27,468,000 kg which represents an increase of 1166%.  This jump could partly be attributed to the WTO agreement on agriculture that came into effect on January 1, 1995, opening up a number of markets that had traditionally been closed.

Figure 15 shows the changes in the exportation levels of turkey and turkey products over a 20 year period.  The figure is broken down into three export categories: carcass (i.e. whole birds), parts, and cooked and other (i.e. prepared meals and soups). Since 1986 the export of turkey parts has been the leading segment of the turkey export market. In 2006 turkey parts represented 56.4% of the total exports, followed by cooked and other at 32.9%, and carcass exports representing the remaining 10.7%.

Although the avian influenza outbreak had a negative impact on the overall exportation of Canadian turkey and turkey products in 2004, the graph does show a reversal of the negative trend and a return to overall export growth in 2005 and 2006.

Figure 15 - Changes in Canadian Exports of Turkey

 Source: CTMA and AAFC compilations

 

Table 18 - Canadian Exports of Turkey Products – 2001-2006
(kg)

Products (kg)	2001	2002	2003	2004	2005	2006
Live	0	0	0	0	0	0
Carcass	185,968	151,146	223,784	53,219	74,796	33,092
Parts	11,487,658	13,585,697	11,343,474	10,541,389	11,131,655	11,933,321
Cooked	70,577	66,556	318,776	52,406	70,177	44,636
Others	4,666,041	8,101,125	6,601,876	7,724,700	5,556,744	5,967,528
Further Processed:
Dinners & Pies	1,785	856	2,047,705	4,098	113,813	55,997
Rolls	0	0	0	0	0	0
Soups	0	0	19,369	208	1,018	22,150
Others	439,912	244,890	449,959	2,473	95,261	113,213
TOTAL	16,851,941	22,150,270	21,004,943	18,378,493	17,043,464	18,169,937

Source:  CFIA / Compiled by the AAFC Poultry Section.

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6.6 Trade Balance in Turkey and Turkey Products

 

Table 19 and Figure 16 below illustrate the overall value of imports, exports and trade balance of turkey and turkey products during the 2001-2006 timeframe³. Imports of turkey and turkey products were valued at $37.7 million in 2006, down 26.8% from 2005 figures.
 
Between 2001 and 2006, import values have fluctuated. The effects of the avian influenza outbreak in British Columbia partnered with supply effects caused by AI outbreaks globally caused the overall value of imports to spike in 2004 and 2005. Aside from 2004 and 2005, the value of imports of turkey and turkey products has remained somewhat stable hovering between $30 and $37 million dollars annually.

Both imports and exports of turkey and turkey products have remained stable for the most part between the 2001 and 2006 period. Overall the trade balance for turkey and turkey products has remained positive except for 2005. This general trend had been falling before 2005 and prior to the avian influenza outbreak in British Columbia in 2004.

Table 19 – Import, Export and Trade Balance Figures for Canadian Turkey and Turkey Products (2001-2006)
($)

	2001	2002	2003	2004	2005	2006
Exports	45,856,615	45,818,140	39,711,246	47,672,957	43,816,385	42,647,418
Imports	30,674,298	36,256,474	32,825,870	43,839,273	51,483,104	37,693,162
Balance	15,182,317	9,561,666	6,885,376	3,833,684	-7,666,719	4,954,256

Source: Statistics Canada and AAFC compilations

Figure 16 - Canadian Trade Balance for Turkey and Turkey Products (2001-2006)
($)

Source: Statistics Canada and AAFC compilations

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