Minister Bibeau announces new programs that deliver full and fair compensation for chicken, turkey and egg farmers

Minister Bibeau, announced details of two new programs designed to help drive innovation and market development for Canada’s 4,800 chicken, turkey and egg farmers

These programs, totaling more than $691 million over ten years, respond directly to requests from producer associations and provide full and fair compensation for market impacts from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“The Government is delivering on our commitment to compensate our supply-managed farmers for losses from recent trade agreements,” Bibeau stated.  “These investments will help ensure continued growth and prosperity for our poultry and egg farmers, who help keep Canada’s rural communities strong and vibrant. We have worked hand-in-hand with industry to ensure they have the full and fair support they need to continue to keep our family farms thriving and our grocery shelves full of good Canadian products.”

The Poultry and Egg On-Farm Investment Program will provide close to $630 million over ten years to support poultry and egg farmers through on-farm investments.

“These programs through on-farm investment enhance long-term competitiveness in preparation for increased imports under the CPTPP”

 

“This announcement of programming is welcomed and a positive step by the government in support of turkey farmers and supply management in Canada,” added Darren Ference, Chair of the Turkey Farmers of Canada. “These programs, asked for by our industries, will help us grow our customer base and the domestic turkey market, and through on-farm investment enhance long-term competitiveness in preparation for increased imports under the CPTPP. We very much appreciate this commitment by the Federal Government.”

Producers will be entitled to an amount proportional to their quota holdings. Eligible projects are anything that helps a producer modernize, become more competitive and adapt to changing consumer preferences. This includes new barn construction or upgrading equipment like feeding, watering, lighting, ventilation, heating, and comfort systems that will promote energy efficiency and reduce environmental footprint. The Government of Canada will contribute up to 70% of the project cost, a ratio increasing to up to 85% for young farmers to help ensure a strong future for Canada’s farms. The intake of applications for this program will launch later this spring.

“This announcement offers new opportunities for our farmers to reinvest in their operations and plan for the future as they navigate the long-term market losses under the CPTPP agreement,” Roger Pelissero, chair of Egg Farmers Canada said.  “By building on current practices, egg farmers will continue to be at the forefront of the sustainable agriculture movement and drive new levels of innovation and efficiency. Egg Farmers of Canada thanks the government for its continued and vocal support for supply management and our strong, domestic agriculture sector.”

Funding will be distributed starting in 2021-22, and will be allocated as follows:

• $347.3 million for chicken producers;
• $59.6 million for turkey producers;
• $134 million for egg producers; and,
• $88.6 million for broiler hatching egg producers.

The Market Development Program for Turkey and Chicken will provide $36.5 million for the Turkey Farmers of Canada and $25 million for the Chicken Farmers of Canada over ten years. This funding will help promotional activities that differentiate Canadian-made products’ reputation for high-quality, safe and sustainably farmed food that adheres to strict animal welfare standards. Funding will be distributed to the national industry organizations, who will submit a multi-year strategy to Agriculture and Agri-Food Canada for approval. The intake for applications from these organizations launches April 13, 2021.

“The Poultry and Egg On-Farm Investment Program and the Market Development Program being announced will allow farmers to plan for the future, adapt to changing consumer preferences, and contribute to Canada’s goals of sustainably growing our agricultural sector,” Benoit Fontaine, Chicken Farmers of Canada chair added. “We’d like to thank the Government of Canada for upholding its commitment to full and fair compensation for poultry and egg farmers.”

The four supply-managed poultry and egg sectors (chicken, broiler hatching eggs, turkey, and eggs) generated $4.9 billion in farm cash receipts in 2020, 6.8 percent of all farm cash receipts in Canada.