In response to market concessions made under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Government of Canada has announced compensation for chicken farmers. This compensation comes in the form of two funding programs: the ‘Poultry and Egg On-Farm Investment Program’ and the ‘Market Development Program for Turkey and Chicken’.
Poultry and Egg On-Farm Investment Program
The ‘Poultry and Egg On-Farm Investment Program’ has allocated funding of $347.3 million for Canadian chicken producers over 10 years. The goal of this program is to increase the long-term competitiveness of Canadian products and make Canadian production more efficient and environmentally sustainable. This goal can be achieved by:
- facilitating producer-made investments for on-farm modernization
- supporting greater efficiency and competiveness
- helping producers meet changing requirements for production practices
- supporting the sector in better responding to future market challenges
Applications for the program open later this spring. Allocated funds will be determined in proportion to quota holdings on January 1, 2021. Applications can continue even once the annual funding allocation is exceeded, and reimbursement will occur in a future fiscal year to avoid delaying projects.
Agriculture and Agri-Food Canada (AAFC) will contribute up to 70% of project costs under this program. To encourage young farmers and the future of Canadian agriculture, applicants 35 years of age or under as of January 1, 2021 will receive up to 85% contribution of project costs from AAFC.
Furthermore, the program considers costs for eligible activities that started on or after March 19, 2019. It is important to note that the applicant assumes the risk of these costs should their project be deemed ineligible.
Market Development Program for Turkey and Chicken
The ‘Market Development Program for Turkey and Chicken’ provides funding of $25 million over 10 years to the Chicken Farmers of Canada and will be used for promotional activities to increase domestic demand and consumption of chicken products.
To apply for funding, applicants should submit a multi-year strategy (maximum 5 years) to Agriculture and Agri-Food Canada (AAFC). Acceptable uses of funds include:
- sector-wide advertising and promotion, including in-store and food service promotions and product demonstrations
- promotional activities that build public trust in Canadian turkey and chicken products including on-farm food safety and traceability programs, animal care programs, environmental sustainability, and benefits of turkey and chicken as healthy protein options
- market research
- development and/or expansion of target audiences
- increasing delivery of current market development activities
- encouraging product development, product testing and research into new innovative processing and packaging technology at the primary and further processing level
- adapting current branding to meet changing consumer expectations
The promotional activities are to be created with the goal of differentiating Canadian products and producers from incoming foreign products and also emphasizing Canada’s reputation for high quality and safe food products.
AAFC will share the cost with industry and contribute funding up to 80% of project costs. For projects specifically aimed at promoting inclusiveness and diversity, AAFC will contribute up to 90% of project costs.