"Not enough Government support", cries the Canadian Pork Council
Canada is at risk of going to a similar food crisis like the US, as supplies tighten and food gets more expensive, warns a representative of the Canadian Pork Council (CPC). Funds delivered this week by the federal government for the industry are seen as insufficient by the levy body and the industry braces for losses that could reach CAD 675 million ($480 million) this year.
The funds promised by the Government of Canada simply do not address the problems producers are facing, commented CPC in a press release.
Industry experts have estimated that pork producers will lose $675 million in 2020. For weeks now, producers have been expressing the critical need for support. CPC specifically asked for $20/hog to feed the animals, keep the lights on and ensure consumers have ready access to wholesome Canadian pork products. “For the past 5 years we have heard from our government that they want to help us to grow our sector, yet when our house is burning, they are offering us a glass of water to save it” illustrates Rick Bergmann, Canadian Pork Council Chair.
Producers have been deeply affected by the sharp decline in hog prices and the reduced capacity of processing facilities to accept their animals. “We want to be able to continue producing food. Providing us with band-aid solutions will only relieve the immediate pressure, but doesn’t solve producers’ liquidity problem” explains René Roy, CPC 1st Vice-Chair.
The sector is critical to Canada’s food security, an important employer, and a significant industry that will be instrumental in restarting the economy. “We are thankful for the Minister’s continued advocacy for our sector, but Canadian pork farm families are in danger. Should they fail, food insecurity will increase as supplies tighten and food gets more expensive,” concludes Mr. Bergmann.
In the neighboring US, pork processing capacity has been reduced by 30% due to multiple cases of COVID-19 infections among workers in processing plants. Hog producers may be forced to cull 7 million pigs in the coming months and are facing losses of $700 million. At the same time, meat products in retail have become expensive and, by the end of May, prices could go up to 20% compared to the same period last year.
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