Thank you.
Good afternoon, Mr. Chair, vice-chairs and honourable members of the committee. My name is Brian Bilkes and I am the chair of the Canadian Hatching Egg Producers. Joining me today is our executive director, Drew Black.
Our farmers supply fertilized broiler hatching eggs to the Canadian chicken industry. These hatching eggs allow chicken farmers to provide safe and healthy poultry to consumers and the food service industry. Your invitation to appear today to discuss agricultural supply chains is a well-timed and critical discussion.
Like my fellow witnesses appearing before you today, I would be happy to report that our domestic supply chains are uninterrupted, but, unfortunately, we are currently experiencing disruptions with regard to required imports. These challenges have been intensified by unexpected situations, such as the extreme flooding in B.C., the heat dome last year and the ongoing global pandemic.
Canada's agriculture and agri-food supply chains require investments in resilient systems like supply management to keep our agriculture sector strong. Our farmers work hard every day to supply our markets with what is needed to feed Canadians.
Regrettably, some trade deals have eroded the market for Canadian poultry and egg producers. They've weakened the sustainability of our supply chains because we rely on 20% of the market being filled by TRQ, which is no longer available for purchase from the U.S. market.
Mr. Chair, we need flexibility in our system to increase production. With the CPTPP and CUSMA trade agreements now in effect, an increasing number of TRQ volumes need to be taken into consideration, which will reduce our domestic production in the coming years.
Full and fair support for the poultry and eggs sectors through CUSMA mitigation needs to be a priority. We know that investing in farmers to remain competitive in all aspects of sustainability will improve and strengthen our supply chains.
Mr. Chair, allow me this opportunity to elaborate on the current U.S. broiler hatching egg supply shortage. Currently, 21% of the broiler hatching eggs and chicks required to meet Canadian production are filled by the U.S. market. While our Canadian farmers are supplying the volumes asked of them, 21% of the market is set aside for TRQ that is no longer supplied in sufficient quantities. Chick placements in Ontario have been reduced by 2%, and it's predicted that this reduction will increase to 5% by the end of this month. Other provinces' hatching egg producers are expecting similar shortages to be coming soon. This market unavailability is expected to last throughout the year.
To address these shortfalls, we must and have increased domestic production, but with the short notice we received with regard to these shortages, there are limited steps that we can take without having more breeder hens in our barns.
We are seeing our freight costs tripling, and the fact that our carriers are struggling to cross the border will undoubtedly cost our farmers their livelihoods. This week, a truck transporting breeder chicks was at a standstill, stuck in traffic, trying to cross the border. The driver was informed the truck was not going to move and would ultimately not cross the border because of the blockades. We were fortunate that, this time, the truck was able to be rerouted five hours to another point of entry. But if these disruptions continue, we will not always be so lucky. These chicks must reach our farms so that we can successfully grow our product.
Mr. Chair, it is my hope that, through processes like today's important discussions, we will be able to create solutions to supply chain disruptions for years to come.
Thank you very much for the opportunity to speak to you today. Drew and I are here to answer any questions you may have. I hope our presentation was informative. Thank you.