Chicken processors plan for uncertain future

BY BRENT FOX

The Advertiser

NovaNewsNow.com

Processors of Nova Scotia’s poultry production have had a mixed year and are planning for an unknown future.

The Maple Leaf processing plant at Canard shut down almost a year ago, forcing some producers to seek other processing means. ACA took some of it, while Nadeau of New Brunswick took the rest. However, the industry is looking at other options for the future.

MapleLodge Farms-Nadeau CEO Tony Tavares told the 42nd annual Chicken Producers’ Association of Nova Scotia annual meeting March 12 in Greenwich, “I firmly believe there is a bright future fro the chicken industry in Nova Scotia.” This despite high feed and delivery costs, a loss of a processing mill and other hardships.

Tavares, who is headquartered in Brampton, Ontario, said it’s not just a question of a new processor, but a look at the industry from top to bottom. To help do this requires a sales strategy.

He pointed out, “I’m not saying Nadeau has all the answers.” But the company is committed to the poultry industry in the Maritimes and it was a record year for the Nadeau plant in New Brunswick.

Tavares said there could be another plant here, but producers would have to ensure any differences among them are set aside.

Meanwhile, he said, “high production and feed costs aren’t going to go away.”

As for ACA, Sue Payne noted that the co-op has developed new packages sizes and new products for its larger national customers. As well, Sobey’s has printed its purchases with the Atlantic Canada brand.

On the price side, Payne said wholesale prices are dropping and growers are facing more costs. If things continue on the same trend, producers and the industry could be in for a bad year.

Additionally, there are concerns such as sodium and transfat in food, and food safety. “Food safety is never going to fall off the table,” Payne said.

On the plus side, she said, there’s the continuing ‘buy-local’ campaign and the 100-mile diet concept.

The future includes more of the ‘local’ aspect in advertising, selling more in Atlantic Canada, more on chilled product, and completion of a feasibility study.

Payne pointed out that a new processing plant would cost $40 million and food profits are two to three per cent. “So you have to look at the long-term.”

She said there are challenges, but also opportunities.