News

Supply Management: What it is and Why it is Important to Farmers and Consumers

Date: March 9, 2017

At the British Columbia Chicken Marketing Board, we believe that supply management is fundamental in stabilizing provincial chicken supply and demand. Supply management not only ensures that British Columbia consumers have access to high-quality, nutritious chicken at all times, but that farmers effectively manage production levels.

There are three essential pillars involved in managing the supply of BC Chicken. These three pillars are production controls, import controls and pricing controls. Together, these pillars form the foundation of the supply management of broiler chicken in British Columbia. Learn more about supply management, the pillars and why they are important to both farmers and consumers.

What is supply management?

Simply put, supply management balances supply with demand. With approximately 325 licensed growers supplying British Columbia with chicken, proper forecasting and reporting procedures are important.

The BCCMB works closely with Chicken Farmers of Canada to forecast the amount of fresh chicken needed for production each period. This forecasting helps to prevent shortages and surpluses of chicken production across Canada. A quota allocation system is used to properly spread production among the provinces.

How do the different pillars of supply management work?

In order for the supply management of Canadian and provincial chicken to function properly, all three pillars must work together simultaneously. Learn more about each pillar below.

Production planning

Production planning allows Chicken Farmers of Canada to match chicken production with consumption estimates. Once the demand has been forecasted, allocation is granted to the provincial marketing boards, who distribute production allotments to individual farmers.

Import controls

Chicken Farmers of Canada must include the import volumes of quota when they calculate the supply requirements so it’s important to know how much chicken is expected to come from outside of Canada.

Producer pricing

The BC Chicken Marketing Board determines the live price for chicken according to a formula that assures a fair return to farmers and allows our processors to be competitive with those in other provinces.  The BC Chicken Marketing Board does set the price you pay at the grocery store.

Why is supply management important to farmers and consumers?

Without supply management, the chicken industry in BC could face serious shortage or surplus challenges. Proper supply management helps BC Chicken farmers effectively match supply with demand, allowing them to optimally use their resources to provide the province with high quality chicken.

For more information about BC Chicken supply management and why it is important to farmers and consumers, please contact the British Columbia Chicken Marketing Board at 604-859-2811 or fill out a form on our website. At BC Chicken, we are a non-profit marketing board that regulates the production and marketing of all chicken in British Columbia. For the latest news and updates, follow us on Facebook, Twitter and YouTube.