Faced with overwhelming and repeated challenges, the Canadian hog industry has prepared a comprehensive plan to guide the sector through the next 5 years.
Prepared by the Canadian Pork Council (CPC) and presented to the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food, the Strategic Transition Plan provides guidance on a number of pressing issues that must be urgently addressed if the Canadian hog and pork sector is to have a viable future.
“Producers know that in order to be profitable in future, they must be committed to change,” says Jurgen Preugschas, Chair of the CPC. “They know that many of the fundamentals that resulted in strong growth in the past no longer exist but that new opportunities will arise. This plan outlines a roadmap to ensure the industry is still here to take advantage of those future opportunities.”
The document outlines precisely what a successful transition would require, including a special H1N1 Recovery Plan Loan, adjustments to the Advance Payments Program emergency advances and a Hog Farm Transition Payment Program.
The plan provides a roadmap through to 2014 and describes several characteristics of a successfully restructured industry, including:©
©• Domestic disappearance of Canadian pork totalling 730,000 tonnes, an increase of 150,000 tonnes over 2008
©• Exports of 4 million live hogs to the US, 5.3 million fewer than 2008
©• Total pork exports of 1 million tonnes, 20% of which will be to the US
©• Total domestic slaughter of 21.5 million head, 0.2 million fewer than 2008
©• A reduction in total production from 31 million in 2008 to 25.5 million pigs
©• Domestic market share of 88% compared with 75% in 2008
The transition plan also includes several additional strategic initiatives that will contribute to the long-term competitiveness of the industry.
The CPC and its member organisations agree it is not in Canada’s interest to simply prop up the industry in an attempt to maintain the status quo. Dramatic change is necessary and urgent action is critical.
• Canadian Pork Council