Canadian egg production reached record highs between June of last year and this May as the industry recovered from an avian flu outbreak according to Farm Credit Canada analysis.
The Canadian sector produced 903 million dozen eggs in that time period, the largest 12-month tally on record according to an FCC article written by senior economist Graeme Crosbie.
Production costs in that sector have eased this year but remain historically high, he added.
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The U.S. has also already filled its quota of tariff-free imports of eggs and egg products to Canada.
“Put another way, there will be no further tariff-free imports of egg and egg products from the U.S. and Mexico for the remainder of 2024,” Crosbie wrote.
Turkey production may be turning a corner after a stretch of low demand and production, Crosbie said.
Last year was the first since 2016 to see an increase in production—6.1 per cent. It was also the first time in nearly a decade that per capital consumption of turkey increased.
In 2024, inventories of frozen turkeys are trending close to monthly maximum levels seen over the past five years, though production had fallen every year from 2016 to 2022.
Turkey prices increased between 2021 and early 2023 before falling slightly in the latter half of the year. This year, prices have declined to be even more and are forecast to be slightly lower to finish the year before stabilizing in the first half of 2025, Crosbie said.
Overall, “Lower food inflation should support demand for poultry products, and the long-term fundamentals for the sector are sound,” he wrote.