In a meeting this week, Minister Ron Kostyshyn (MAFRI) told representatives of the Manitoba Pork Council (MPC) that the provincial government will not support the Hog Stabilization Program. Karl Kynoch, MPC Chair, is very disappointed that the government will not offer a guarantee on a private sector solution to the current economic crisis in the hog sector. Mr. Kynoch believes that Council has proposed a well designed industry-driven solution which was supported by producers and processors.
“The plan would have provided some short-term financing of current losses to ensure producers had sufficient cash to meet their monthly feed and labour bills. The loans would have been repaid by a compulsory check-off on pig sales of the participants,” says Kynoch. “Without this assistance, more producers will now close their hog operations before losing the rest of their farm to bankruptcy.”
The impact may be felt at the processing plants this Fall when there may not be enough pigs to keep the plants cost-competitive with similar U.S. plants. With the cuts made in the whole-farm AgriStability Program in 2012, producers can no longer rely on government to provide any significant financial assistance.
Mr. Kynoch strongly urges all producers to talk to their creditors to develop their own financial survival plans. He also recommends producers contact the Manitoba Pork Credit Corporation to see how the Advanced Payment Program could help.
