Cost of chicken may rise 10% for BC consumers and restaurants this year

BC consumers and restaurants could be hit with another increase in the price of chicken, according to an advocacy group.

Restaurants Canada recently issued a statement expressing concern about the price hike of live BC chicken, which was approved by the BC Farm Industry Review Board.

“This decision will have significant consequences for British Columbia restaurants and consumers who value chicken as an affordable food choice,” the statement reads.

According to the group, British Columbians already pay the highest retail price for chicken in the country – 40% higher than the Canadian average.

“While there are several variables in determining the final price to consumers, we are concerned that the approved price increase could lead to another 10% increase to the price of chicken for BC restaurants and consumers over the next year,” the group added.

“Our members are frustrated that the cost of chicken has already soared in the past couple of years. Further price increases are unsustainable, especially considering that competitively priced chicken is a staple on 80% of restaurant menus,” said Mark von Schellwitz, Vice President, Western for Restaurants Canada. “Additionally, it is disheartening that the foodservice industry, which purchases 40% of the chicken produced in BC, has no say in the price-setting process.”

Restaurants Canada said it would advocate for changing the price-setting process so that retail and food service are recognized as stakeholders in it going forward.

“As an industry that traditionally operates on slim profit margins, this increase will put an unsustainable strain on restaurants. Despite facing a 20% increase in operational costs, BC restaurants are shouldering most of the burden and not passing those full cost increases on to their guests, compared to chicken producers who are passing on all their cost increases,” the group added.

While it is appreciated that the price increases will gradually phase in over the next year, the advocacy group said, “This is going to significantly change the economics of the entire supply chain.”

“The bottom line is chicken prices will become even more expensive because of this decision, exacerbating the financial challenges faced by our industry and consumers alike,” it added.