|Figure 1: Basic statistics for Ontario chicken meat prices, $/kg|
The minimum chicken price found by SFPFC's survey was $4.98/kg on 2013-11-28 at GG's Grocery Store (small independent) in Little Current Ontario for "VCP Chic Leg Quarters". I was told "VCP" was short form for "Value Club Pack", meaning it was a large tray of chicken, for "buy in bulk" savings.
A CV of 52.36% is quite excessive. Another way of showing this large variation in values within this population is that the maximum price is 6.02 times the minimum price.
As a comparison for this degree of
variation within a population, note that the world record tallest man was 8 ft. 11" tall, while the world record shortest man was 1 ft. 10" tall, which is a 4.86 ratio of heights. In Figure 2 we see the 2011 meeting of the current record holders, who had a 3.3 height ratio. The all time record is 4.86 for human max/min height ratio.
Compare that to the Ontario chicken market with a max/min price ratio of 6.02
|Figure 3: Histogram of Ontario Chicken Prices, $/kg|
When we look at the histogram in Figure 3, we can likely see at least two separate distributions or populations that are combined together in the marketplace. The first distribution appears to be from $4.98/kg to around $25/kg, which seems to be the bargain basement, plain chicken cuts. The second distribution seems to go from $25/kg to $29.975/kg. which are the premium, branded, prepared (eg. seasoned, specialty, etc.) chicken, or pre-cooked ready to serve chicken.
The description of the various cuts of chicken may give us a clue as to the reasons for the wide variation in prices.
|Figure 4: Ontario chicken meat prices $/kg. vs. type of cut|
and other specifications
It appears that sequence of prices from the lowest cost to the highest cost is:
- chicken legs
- whole chickens
- flattened whole seasoned chickens, back missing
- chicken thighs
- chicken breasts
- boneless, skinless chicken breasts
- organic chicken
- PC Free (no antibiotics) chicken
- cooked & sliced chicken
- branded boneless, skinless chicken breast
In a previous Blog posting (see Chicken Price Parity: Will it ever come? and Chicken Monopoly Pricing), I showed that the Canadian chicken price as defined by Statistics Canada was steadily increasing by 3.54%/yr for the last 17 years. Returning to StatsCan's CANSIM Table 326-0012 we find that the Canada-wide chicken price as of Nov. 2013 is $6.99/kg. SFPFC's average price for Nov. - Dec. 2013 was $13.63/kg., which is 1.95 times Stats Can average price.
Stats Can data is for farm gate pricing paid to producers, as defined by StatsCan Report 5039. SFPFC's data is for retail prices.
The US retail composite chicken price per USDA for Nov. 2013 is 195.6 cents per pound (ie. $4.30 per kg.).
With a minimum Ontario retail price of $4.98/kg and a composite average US price of $4.30/kg, this lowest Ontario price is 15.81% higher. Was this cheapest Ontario chicken old, soon to expire its best-before date, and therefore on deep discount pricing for quick sale? Unfortunately, this is unknown, and we can only speculate.
Therefore retail price of chicken in Ontario Canada for Nov. 2013 is 316.98% of US retail chicken prices.
Proof again of the monopolistic, unjust, price gouging of Canadians by the #ChickenMafia.