The Newfoundland broiler industry is comprised of a single integrated company which
grows approximately two-thirds of its requirements and contract grows the remaining
one-third. This allows for coordinated production and processing on a scale which
should allow the company to compete in regional and national markets. Newfoundland
chicken farmers now grow product that is very responsive to the customers’ needs.
Producer and processor are now one unit and market demands are responded to immediately.
The Newfoundland Chicken Marketing Board was established in 1982 and is responsible for
managing the production and marketing of chicken. The production quota is issued by the
national body Chicken Farmers of Canada, to the Newfoundland Chicken Marketing Board who are
responsible for provincial quota allocations, production and general management of the chicken
industry.
There are opportunities for the chicken industry in this province. Large customers
require very fresh, correctly sized and priced product. The fact that we are on an
island is in the local growers’ favor and creates an opportunity to supply fresher
product than can be imported. In the next several years, production is expected to
increase significantly thereby allowing the local industry to reduce costs by
improving their scale of output. As well other than the relatively high cost of
imported grains, Newfoundland has the advantages of:
Very moderate climate which is conductive to large scale chicken production;
Lower wage rates relative to some areas of Canada;
Stable work force that is known for dedication to employers.
The industry is also faced with the following challenges:
The high cost of feed ingredients and rations from mainland sources must
continue to be addressed.
There is vigorous competition from mainland poultry meat suppliers.
Many of the competitors for the Newfoundland market are large, integrated,
well organized.