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 Chicken Farmers of Newfoundland and Labrador 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 Chicken Farmers of Newfoundland and Labrador 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.