Focus on Barbecue

HPBAC Phone Survey

HPBAC staff conducted an informal phone survey sampling 39 retailers across Canada in December with six questions relating to barbecues. Here are the overall results:

Percentage of retailers surveyed who sell Barbecues: 68%

Of those who sell barbecues:

100% sell them all year
100% sell barbecues at Christmas with several reporting increased sales this Christmas
64% promote barbecues all year
Average price range: $480 - $3,600
Lowest priced unit: $30
Highest priced unit: $10,000
Average # of brands carried: 3

Chinese Barbecue Imports Growing

On Saturday, December 17th, the Globe and Mail contained an article by Gordon Pitts on imports of Chinese barbecues called Another shrimp on China's barbie. Ted Witzel of Onward Manufacturing Co., in Waterloo was interviewed following a trip to China to view manufacturing facilities there. Mr. Witzel was discouraged by what he saw but plans to "fight like hell" to keep the bulk of OMC's production in Canada.

Since 2001 when the Chinese share of the Canadian barbecue market was 1% it has increased to almost 50 per cent. In 2004, 412,000 Chinese barbecues were sold in Canada, up from 90,000 in 2002. Production costs for Canadian made barbecues are reportedly 25 to 40 per cent higher than Chinese products. Canadian manufacturers are frustrated by the inequities they face when competing with Chinese manufacturers. Corporate tax rates in China are 15 per cent with a tax holiday for the first two years of a company's operation. The Canadian corporate tax rate is 36%. Chinese wages are roughly 10% of Canadian wages and Chinese manufacturing facilities are not subject to health and safety regulations.

Although the barbecue industry lost the battle before an anti-dumping tribunal the Canadian International Trade Tribunal recommended a temporary 15% safeguard surtax on Chinese barbecue imports. The tariff awaits federal cabinet approval which has been delayed because of the federal election. The safeguard tax is valid under World Trade Organization regulations.

Some major Canadian retailers oppose the surtax fearing this type of protection could extend to bicycles, furniture and other threatened Canadian industries and have won a judicial review of the CITT's decision. They believe trade practices that bolster uncompetitive Canadian industries forces consumers to pay more and threatens China-Canada relations.