Posted on 07/29/2009, 7:35 am, by mySteinbach

The Canadian Pork Council insists a program of government loans requested by the Canadian hog industry is compliant with international and North American trading agreements and trade friendly.

A proposed Canadian hog industry restructuring plan calls for a combination of loans and the establishment of a hog farm transition payment on a per sow basis to allow those producers who wish to exist the industry to do so.

Last week the U.S, based National Pork Producers Council expressed concern that the proposal will artificially prop up Canadian pork production and shift the financial pain to US producers.

CPC chair Jurgen Preugschas says Canadian pig prices have been, in large part, artificially depressed by such things as U.S. Country of Origin Labelling.

What we’re talking about here are virtually commercial loans, interest bearing loans and as most countries do including the U.S. just announced another 760 million dollars of loans to their farmers which I’m guessing is trade friendly, the Brazilians announced four billion dollars in loans to their livestock producers so a small loan to our Canadian producers we feel is totally and completely trade friendly.

What we do need I think is a reduction in the poundage of pork produced in North America.

Canada has done their part, the Americans haven’t.

Where we have dropped some 17 percent of our sow herd over the last three years, in the U.S. there’s virtually no change.

Until that changes our North American and Canadian hog producers are going to continue to lose money.

Preugschas notes stocks of pork meat are up significantly in the U.S. which is an indication of over production.

He says Canada has reacted to market signals, the U.S. hasn’t.

Source: Farmscape.Ca