Chicken Prices Set to Rise Sharply in 2026
Chicken Farmers of Canada have underproduced for nine consecutive eight-week production cycles, a situation not seen in over 40 years. This has led to one of the most severe chicken shortages in recent Canadian history.
The Role of Supply Management
Supply management in Canada is a unique system designed to protect both farmers and consumers by ensuring stability, fairness, and predictability in food supply. It relies on three key pillars:
- Domestic production
- Controlled imports
- Storage reserves
When one pillar underperforms, the other two usually mitigate the impact. However, this year all three have failed simultaneously, resulting in significant supply disruptions.
Impact on Consumers
For decades, chicken has been a reliable and affordable protein in the Canadian diet, largely shielded from global price fluctuations. But in 2025, the production system intended to maintain steady supply has faltered, leaving consumers facing higher prices while farmers and processors avoid bearing the cost.
"Canada is now facing one of the most severe chicken shortages in recent history, and consumers — not farmers or processors — are paying the price."
This failure of the supply management system underscores its increasing fragility in guaranteeing consistent food availability.
Newsletter Note
The original report was part of a newsletter update providing current insights into Toronto and beyond.
Author's Summary
The long-standing Canadian supply management system has faltered in 2025, causing a major chicken shortage and predicting higher consumer prices into 2026.