Under Canada's supply management system, chicken producers receive a fixed price for live birds, based on production costs and set for every eight-week production cycle, according to a USDA Foreign Agricultural Service poultry report on Canada.
Ontario is the largest chicken-producing province, accounting for about one-third of the market, so its live bird prices form the basis for price calculations in other provinces. Producer prices have remained relatively stable over time, typically tracking changes in feed prices, which represent the largest component of production costs.
The system only guarantees prices for producers. Wholesale and retail chicken meat prices generally reflect supply and demand, as well as consumer preferences for different cuts, quality, and degree of processing.
Canadian consumer preferences traditionally skewed heavily toward white meat, such as breasts and wings, over dark meat such as legs and thighs. Those preferences have shifted gradually over the last decade and now balance out between the two types. Leg quarters had long been the least expensive chicken cut in grocery stores, but greater consumption of ethnic cuisine and consumer price sensitivity have supported higher demand. The 2022 inflationary boost pushed leg quarters to a new price level and confirmed dark meat's new place in consumer preference.
Consumers have also moved toward boneless skinless thighs, the most expensive dark meat cut, which now competes directly with fresh boneless skinless breast meat as the preferred barbecue item for Canadians. Boneless skinless breast remains the most expensive chicken cut and is widely used in restaurants. Wings are especially popular during the winter hockey season and other sporting events, with demand remaining solid over the years.