Sector Profiles

The Canadian Poultry and Egg Processors Council (CPEPC) is an Ottawa-based national trade organization representing the interests of more than 170 Canadian poultry processors, egg processors and hatcheries. In addition, our membership includes over 60 national and international industry partners who have joined us as Associate members.

Now in its 59th year of operation, the Council has grown and adapted to meet the changing needs of the Canadian poultry industry. During 1995, the structure of the Council changed significantly following a merger with the Canadian Hatchery Federation and the development of a new sectoral emphasis. Currently, the CPEPC consists of six sectors: primary chicken processors, primary turkey processors, poultry further processors, egg graders, egg further processors, and broiler and egg-type hatcheries.

Within our new structure, issues of general concern are handled by the Council's Board of Directors made up of two representatives from each of the six sectors. Sector specific matters are dealt with directly in each sectoral group. Our various technical and policy committees address the concerns of all sectors.

Our Members

Representing some of the largest agri-food corporations in Canada, our member companies process over 90% of Canada's chicken, turkey; eggs and hatching eggs. This economic activity generates approximately $5 billion in retail sales. To accomplish this, our members have invested over $1.5 billion in plant and equipment, and directly employ more than 17,000 Canadian workers.

Although our sales activities have historically been oriented towards the domestic marketplace, Council members are increasingly interested in exports. Both the turkey and chicken sectors have shown significant increases in recent years and, since 1990, exports of poultry meat have increased by more than 800% to a current total in excess of 50 million kilograms. Processed egg exports are also significant and growing. All CPEPC sectors will be working closely with the national agencies and government to ensure that appropriate policies are implemented to permit still further growth of this valuable economic activity.

Primary Chicken Processors Sector

Sector Directors:

Reg Cliche - Maple Leaf Fresh Foods - New Hamburg, ON

René Proulx - Exceldor coopérative avicole - Lévis, QC

Council's18 primary chicken processor members operate 30 processing plants and additional further processing plants.  These companies have a throughput of more than 936 million kilograms (eviscerated weight) of meat each year, which represents approximately 94% of all chicken processed in Canada.

This coast to coast economic activity directly employs over 8,000 Canadian workers, and represents an investment in plant and equipment of more than $500 million.

The supply of raw product purchased by our members comes almost exclusively from the chicken producers of Canada (members of the Chicken Farmers of Canada). To assist producers in determining policies which will benefit the entire Canadian chicken meat industry, two Council members sit on the Board of Directors of the Agency.

Primary processors are also instrumental in determining the supply of chicken meat that will be available to Canadian consumers on a provincial basis.

While Canada has historically been a large net importer of chicken meat, this trend is starting to change. The export market opportunities for Canadian chicken are growing rapidly, and according to Statistics Canada, our exports have increased from 1.1 million kilograms in 1990 to over 33 million kilograms in 1997.

The per capita consumption of chicken meat in Canada has continued to grow (it has more than doubled since 1975 as the nutritional, economic and versatile characteristics of chicken win increasing approval from diet and value conscious Canadian consumers). Also, as export opportunities continue to be developed, the members of the primary chicken processors sector will maintain their commitment of supplying high quality products at competitive prices, while enjoying continuing growth.

Primary Turkey Processors Sector

Sector Directors:

Craig Evans - Granny's Poultry Cooperative - Winnipeg, MB

Jeff McDowell - Maple Leaf Fresh Foods - Mississauga, ON

The primary turkey processors sector represents the interests of 15 Canadian members who directly employ more than 1,500 workers. Total plant and equipment investment is in excess of $100 million.

With an annual throughput of more than 135 million kilograms (eviscerated weight), our members process well in excess of 90% of all turkey processed in Canada.

Although Canadian per capita consumption of turkey meat has increased only marginally in the past ten years, our primary processor members have taken advantage of the increasing world market for turkey products, and now hold the unique distinction of being the only sector of the Canadian poultry industry to be net exporters. Since 1984, exports of Canadian turkey have increased from 777,000 kilograms to a record high of over 16 million kilograms. During the same period, imports of turkey into Canada increased from 1,738,000 kilograms to 2,985,000 kilograms.

Domestically, turkey processors have also adapted to changing trends. Recent Agriculture and Agri-Food Canada statistics show that retail sales and those to the hotel, restaurant and institution sector are now virtually equal. This represents a major change from the period when turkey was only a Thanksgiving and Christmas staple sold in the form of whole birds through retail outlets. A comprehensive generic marketing program is planned to commence in 1999 to focus still more attention on the versatility of turkey, in the form of recipes using turkey parts, with the intention of increasing per capita consumption.

Primary turkey processors work closely with the turkey producer members of the Canadian Turkey Marketing Agency. Two members of the CPEPC are members of the Board of Directors of the Agency, and have been working with the producers to develop policies that will allow the Canadian turkey industry to maintain the flexibility necessary to meet new market demands.

Poultry Further Processor Sector

Sector Directors:

Craig Richardson - Grand River Poultry Ltd. - Paris, ON

Ed Rodenburg - Lilydale Foods - Edmonton, AB

With a plant and equipment investment in excess of $300 million and direct employment of more than 3,500 people, the Poultry Further Processing sector of the Canadian Poultry and Egg Processors Council represents both chicken and turkey members from coast to coast and accounts for approximately 85% of all poultry further processed products sold in Canada.

This rapidly growing sector is supplied by primary chicken and turkey processors and transforms raw chicken and turkey meat into a variety of innovative foods for the retail and foodservice markets. Recent figures from Agriculture and Agri-Food Canada show sales from this sector to be in excess of $1.3 billion.

As members of the most recently formed sector of the CPEPC, poultry meat further processors are actively involved in all areas of the poultry meat industry. The primary focus of this sector is on the myriad of technical issues which associate with new product development. Another focus is to promote policies which maximize the utilization of Canadian chicken and turkey in these innovative products.

The interests of the further processor sector members are represented on the Boards of Directors of both the Canadian Chicken Marketing Agency and the Canadian Turkey Marketing Agency through the Directors' positions occupied by CPEPC members. They also work closely with members of the primary processing sectors to ensure that adequate supplies of chicken and turkey meat, meeting appropriate specifications, will be available for further processing.

Canadian Hatchery Federation Sector

Sector Directors:

Rick Weiss - Maple Leaf Fresh Foods - Wetaskiwin, AB

Gerry Kennie - ACA Co-operative Limited - Kentville, NS

The Canadian Hatchery Federation sector of the Canadian Poultry and Egg Processors Council represents the interests of 54 broiler, egg-type and turkey hatcheries in all regions of the country.

Operationally, hatchery sector members are represented by one of eight regional Directors at the sector level, and two of those Directors represent the sector on the CPEPC Board.

The latest industry figures indicate that 600,000,000 chicks and poults will be placed nationally this year. CPEPC members will place 564,000,000 or 94.0% of those. This activity directly employs 2,500 Canadian workers, and represents an investment in plant and equipment of approximately $250 million. The value of these chicks when sold to producers will be in excess of $310 million.

In meeting the needs of Canadian broiler growers, egg laying operations, and ultimately processors and consumers, hatchery members source hatching eggs for incubation both domestically and internationally. Under the current NAFTA and GATT/WTO Agreements, 21.1% of the total Canadian broiler hatching egg requirement is sourced from outside Canada and enters the country duty free. The remaining 78.9% of our requirement is purchased from Canadian broiler hatching egg producers.

Most egg-type and turkey hatcheries are somewhat different as they own their breeder flocks. No border controls exist for these commodities and our members have been increasing export sales in recent years.

Egg Grading Sector

Sector Directors:

Hank Lammers - Burnbrae Farms - Mississauga, ON

Bert Harman - Star Egg Co. Ltd. - Saskatoon, SK

The Egg Grading Sector of the Canadian Poultry and Egg Processors Council directly employs more than 1,300 Canadian workers, and represents an economic investment in plant and equipment in excess of $140 million.

Recent Agriculture and Agri-Food Canada statistics indicate the throughput of eggs in our members' plants to be approximately 400 million dozen per year, or approximately 90% of the national total.

The approximately 46 egg grading sector members of our Council are active in all regions of the country and work closely with primary egg producers to ensure an adequate supply of fresh shell eggs will be available to consumers.

Operating also as wholesalers, Council's egg grading sector members distribute fresh eggs to the hotel, restaurant and institutional market, along with supplying retail outlets.

In 1997, the long-term trend of declining per capita egg consumption was reversed as consumers were educated through aggressive marketing programs regarding the nutritional benefits of "nature's most nearly perfect food". This, in combination with dispelling myths regarding cholesterol; and, the obvious value of eggs to consumers represent growth opportunities to this important sector. Shell egg sales to the retail markets have continued to increase throughout 2000 and into 2001.

The total wholesale sales value of this sector exceeds $650 million.

Egg Further Processing Sector

Sector Directors:

Mike Vanderpol - Vanderpol Egg Products Inc. - Abbotsford, BC

Aaron Kwinter - Global Egg Corporation - Etobicoke, ON

This growing sector transforms shell eggs into liquid egg, powdered egg, frozen products and ready to eat items. It purchases from the Canadian Egg Marketing Agency some 80 million dozen eggs for use within Canada and in export markets. These purchases are supplemented by purchases of imported shell eggs or liquid egg product totalling the equivalent of another 13 million dozen and Canadian off-grades estimated at approximately 8 million dozen. This translates into total purchases of some 100 million dozens, or $70 million dollars of shell eggs or liquid eggs for further processing. The wholesale selling values for the fully processed products sold by this sector total approximately $95 million (varying with market prices for breaking stock). In addition, processors imported the equivalent of 12 million dozens under special supplementary permits for processing and re-export.

With approximately 13 members directly employing more than 380 Canadian workers, Council's Egg Further Processors have invested over $75 million in plant and equipment.

Sector members are continuing their research into the "fractionalization" of eggs for various uses. Examples include the extraction of enzymes from eggs for use as processing aids in food processing, and the extraction of other egg components which are used as ingredients in pharmaceutical products. Most important, however, is the ongoing development between further processors and their customers of new value-added food products containing processed egg products. This has enabled the egg further processing industry to expand its operations and to increase both domestic and export sales.

New technology and changing lifestyles are therefore combining to create new market opportunities for egg further processors. Twenty years ago, this sector accounted for only 5% of Canada's eggs. This grew to almost 20% by 1997, and projections for the next decade indicate strong further growth.