Chicken, once an affordable staple for many Canadians, has become noticeably more expensive in recent years. If you’ve been to the grocery store and balked at the price of a simple pack of chicken, you’re not alone. So, what’s behind these rising costs?
Supply Management Limits Chicken Production
One of the primary reasons chickens are more expensive in Canada than in other countries is the supply management system. This system regulates the production of poultry, dairy, and eggs to prevent overproduction and stabilize prices. While it protects local farmers from volatile markets, it also limits how much chicken can be produced and imported. As a result, chicken farmers can charge higher prices due to the restricted supply.
Import Restrictions Make It Hard to Find Cheaper Alternatives
In Canada, bringing in chicken from other countries isn’t as simple as hopping across the border to stock up. Strict import restrictions make it difficult to source cheaper chicken from the U.S. For example, if you try to bring in more than 20 kilograms of chicken, you’ll face a hefty 270% tariff. This keeps Canadian chicken prices high, as cross-border shopping or importing in bulk isn’t viable for most.
Rising Production Costs
Inflation has hit every sector, and chicken production is no exception. Rising grain prices, supply chain disruptions, and increased transportation costs have made chicken more expensive. Feed prices have surged, and getting products from farms to stores now costs more due to higher fuel costs. All of these factors are passed down to consumers, making that pack of chicken thighs pricier than before.
The Impact of Avian Flu
Another key factor driving up chicken prices in Canada is the avian flu. Several outbreaks have affected poultry farms, forcing the culling of millions of birds. With fewer chickens available for processing, the supply crunch has pushed prices even higher. Provinces like Ontario, where many farms were hit, have experienced some of the worst price hikes.
Will Chicken Prices Go Down?
While overall food inflation is expected to cool slightly in 2024, chicken prices may remain elevated for a while longer. With continued restrictions on production and imports, along with the lingering effects of avian flu, Canadians might have to get used to paying more for their favorite poultry products. However, with some smart shopping strategies and occasional sales, you can still find ways to save.
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As someone who loves chicken, the rising costs are frustrating, but knowing the reasons behind it makes it easier to understand. Hopefully, as inflation eases, we’ll see some relief at the grocery store soon!
