Farm cash receipts, defined as the value of production at the farm gate, totalled $73.3 million in 2000, down 6.1% from the record annual sales set in 1999. The reduction in farm cash receipts stemmed from a decline in receipts to chicken farmers due to industry restructuring. Sales of other farm produce, including dairy, cattle, floriculture and nursery, and vegetables exhibited positive growth with most categories posting record high values.
There has been significant growth in the agrifoods industry in recent years due to the development of specialty products and niche markets, increased secondary processing, increased export focus, and improved farm management and marketing skills. Farm sales increased by 3.0%, on average, during the 1990s led mainly by dairy, poultry and egg production.
Chicken Farming
Chicken production and processing constitutes the second largest sector of the provincial agrifoods industry behind dairy products. In 2000, this sector represented 20% of total farm cash receipts, or $15 million, and contributed close to $40 million to provincial retail sales. The industry is currently comprised of seven chicken farms and one processing
facility, which combined, employ about 400 persons.
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| Chicken Production |
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| Source: Statistics Canada |
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The chicken industry is regulated by the Newfoundland Chicken Marketing Board, a joint government-industry organization. The Board is responsible for setting licensing regulations and governing commercial production quotas in accordance with an interprovincial supply management agreement.
Production growth has been steady, averaging 5.6% per annum since 1981, reaching a record level of 11.4 million kilograms in 2000 (up 0.6% from 1999). Industry estimates indicate that local production meets about 55% of total local chicken demand.
The industry has undergone fundamental structural change over the past several years. Prior to 1997, the industry operated as a subsidized Crown Corporation, the Newfoundland Farms Products Corporation. In 1997, government divested ownership to Integrated Poultry Ltd. (IPL), a consortium of local chicken farmers. In 2000, the Atlantic Cooperative Alliance assumed control of IPL’s assets and indicated its intention to invest about $3 million into the production facility with a view to improving efficiency and competitiveness.
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Photo: Department of Forest Resources and Agrifoods
Fresh farm produce |
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