There are 196 countries in the world today. Of those 196 countries, 47 of them produce broiler chickens. Of that 47, only 28 countries export chicken to other countries.
In statistics, you can calculate all possible permutations of choosing the top 6 countries from 28 available countries. If you have an Excel spreadsheet handy, the formula is "=PERMUT(28,6)". Excel tells us there are 271.3 million different possible permutations. With only 6 chances out of 271.3 million to be a chicken supplier to Canada, that is pretty slim odds; pretty close to zero. How then, did these 6 particular countries get chosen as Canada's preferred chicken suppliers?
It takes a lot of homework to successfully buy chicken from a foreign suppliers. Thousands of things could go wrong, resulting in sea containers of seized chicken rotting at the Custom dock due to a hold by Canadian Food Inspection Agency ("CFIA"), or late chicken, or no chicken. If you have something that is working reasonably well, you will do just about anything to keep it working for one month longer.
That is why you need to choose a foreign partner very carefully. Currency instability can destroy a beautiful thing overnight.
|Figure 1: Foreign exchange rates between Canadian $ and the currency used|
by the Top 6 countries exporting chicken to Canada.
On Nov. 6, 2007 the CDN:US exhange rate hit an all-time high of 1.3372 making US chicken the cheapest due to favorable currency exchange rates (see the Black coloured line in Figure 1 above).
On Aug. 5, 2008, the CDN:Brazilian Real exchange rate hit an all-time low of 0.72 which made Brazilian chicken more expensive than any other time in that 10 year period. Since then, the exchange rate has grown steadily, so that Brazilian chicken is cheap, and getting cheaper all the time.
Figure 2 below shows the overall statistics on these exchange rates during this 10 year period.
Notice that China isn't in this list of chicken suppliers. Isn't everything that China produces the cheapest in the world? A broad assumption that may not be true for chicken. China is the 5th largest exporter of chicken in the world. So if China is a huge exporter of chicken, why isn't China one of the Top 6 for Canada?
Let's take a look at China's exchange rates with the Canadian $.
Canada's Top 6 chicken suppliers. The choice is made based on maximum profits and minimum frustration for the millionaire Chicken Mafia. It has little or nothing to do with protecting the Canadian public, or doing what's in the best interest of the public. It's all about maximum profit and minimum frustration for the millionaire Chicken Mafia.