Like pork producers in the United States, pork producers in Canada have also been suffering from price declines due to the H1N1 outbreak, high feed prices, high exchange rates, and ‘“US public policies,”’ according to Canadian Pork Council (CPC) Chair Jurgen Preugschas.In response to the industry’s struggles, the Canadian government announced on August 15, 2009, its commitment to helping the industry through the implementation of three programs. The programs would help provide liquidity to the business capable of surviving in this economic climate, help existing producers leave the industry if they so desire, and by providing funding for research and sale promotion.
According to a story published by Farm Focus, $17 million will be set aside for an International Pork Marketing Fund. This money would be used for market research, as well as initiatives to find new customers for Canadian producers. The money will be available over a 4-year period “on a cost share basis” for the Canada Pork International’s market research, promotion, and access initiatives.
Additionally, long-term loans, backed by government credit, will be available to help hog operations that are “viable” restructure and maintain their business. Short-term credit will be available for immediate operating costs like payroll and feed.
Finally, $75 million will be available to provide transition assistance for producers wanting to leave the business. The goal is for the producers to stop production for at least three years. This, Hog Farm Transition Program, aims to address production and oversupply issues.
To read the Farm Focus story click here.
Posted: 08/19/09
