An abundance of supply in over-saturated markets has producers feeling the pinch more than ever as two-decade pricing lows have hammered away at the industry recently.
As Canadian pork looks to break into markets across the Pacific and Atlantic, we must confront the growing trend toward imports of U.S. pork into our domestic market.
While supply is one of the major barriers of Canada’s cattle sector, lack of demand is hurting Canada’s pork exports to the European Union.
“At the end of the day, it’s better for us to ship it somewhere else versus going in to the EU where the market is already saturated,” said Darcy Fitzgerald, executive director of Alberta Pork.
“We have a lot more customers we can go to in the Pacific Rim, so that will be a better market for us. Having the Trans-Pacific Partnership (TPP) signed will be a big bonus for us. It’s opening a lot more doors for us with countries that really want our products.”
Read more from Alberta Farmer Express.
In late October, we celebrated the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which goes into effect at the end of December.
“Canadian pork producers would like to thank all those involved in this process, including all members of the House of Commons and the Senate, along with Minister Carr,” said Rick Bergmann, Chair of the Canadian Pork Council. “We are thrilled that members acknowledged the importance of Bill C-79 by expediting the legislative process.”
Read more from the Canadian Pork Council.
During this time of uncertainty, many producers are wondering about risk management strategies. Farm Credit Canada is currently offering support for hog producers.
At a time when hog producers expected to profit from their labours, a rising supply of American pork and tariffs on U.S. pork exports saw Canadian hog prices drop as much as $55 per animal in June. The Canadian Pork Council estimates the sudden decline resulted in losses of $125 million for the Canadian hog industry between June and September.
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The sudden decline in hog prices had a significant impact on Canadian hog producers, but prices are increasing and the industry is showing more stability. Support is available, and there are steps producers can take to help manage risk.
Read more from Farm Credit Canada.
While prices have recovered somewhat since late summer, Alberta pork producers are still earning back less than their cost of production. Here’s to hoping for a positive market outlook, with the help of new trade deals!
