Brazil Risks Losing Ground in Canadian Chicken Market to Chile, USDA Warns

According to projections from the U.S. Department of Agriculture (USDA), Canada is expected to continue increasing its chicken imports in 2025, continuing a trend that started in 2024. Imports are anticipated to reach 215,000 tonnes, approximately 36% up the volume imported last year. However, this figure would only reveal a return to the levels seen a decade ago (in 2015).

The USDA explains that Canada typically imports chicken wings and breasts. Wings are primarily directed toward the food service sector, while breast meat is utilized across various distribution channels, including post-processing, food service, and retail.

The United States is traditionally Canada’s largest external chicken supplier, accounting for between 80% and 85% of its imports. Brazil trails as the second-largest supplier, but its share is less than 10% of the total imported (just over 50,000 tonnes in 2023).

However, Brazil risks being overtaken in this regard. Chile may step in as Canada’s second-largest supplier, having been the first country to benefit from Canada’s market access programs under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The USDA notes that Chile is currently viewed as an emerging chicken supplier for Canada, with the potential to surpass traditional suppliers like Brazil and Thailand (the third-largest supplier after Brazil).

In addition to the agreement between Chile and Canada, another limiting factor for Brazilian exports to Canada stems from U.S. restrictions. The USDA explains, “Some Canadian importers are discouraged from importing Brazilian chicken, despite its lower cost, because it cannot be re-exported to the United States.”

To elaborate (and quoting the USDA), “Since the U.S. does not allow imports of Brazilian chicken meat, the Canadian Food Inspection Agency (CFIA) has strict import procedures to ensure that Brazilian chicken exported to Canada does not enter the U.S. According to CFIA regulations, chicken imported from Brazil cannot be exported to the U.S. and cannot be used in the manufacturing of meat products exported to the U.S. Canadian slaughter and processing establishments that import chicken from Brazil are not eligible to export poultry meat products to the U.S. Furthermore, chicken and meat products from ineligible establishments cannot enter Canadian establishments that have full export status to the U.S. All Canadian establishments (including storage facilities) must segregate meat within their facilities by country of origin and destination.”

According to the USDA, as relations between Chile and Canada strengthen, Chilean poultry is expected to fully utilize the tariff quota established under the CPTPP, with its exports to the Canadian market potentially exceeding 20,000 tonnes.

Source: AviSite

Click here to access the original news report: https://www.avisite.com.br/carne-de-frango-nas-exportacoes-brasil-pode-perder-mercado-canadense-para-o-chile/#gsc.tab=0

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