Ontario Agriculture

The network for agriculture in Ontario, Canada

Supply Management for Pigs

Here's a story from CFCO radio in Chatham...

Hog producers who had been hoping for a supply managed system, similar to the dairy and egg boards may be disappointed with a study out of Ridgetown. Researcher Ken McEwan says there are probably too many negatives to let the idea work. Partially that’s because Canadian farmers produce a lot more pork than the nation needs. Overall more than 60 per cent of the hogs, or pork products that originate in Canada are exported. In Ontario the figure is closer to 40 per cent but McEwan says it still means about half the industry would have to be shut down. McEwan says it would also shut a lot of processing and packaging companies that fill export demand. A third problem would be potential retaliation. McEwan says trade restrictions could be contrary to the requirements of Nafta and WTO.

http://farmradio.ca/2009/09/supply-managed-pork-likely-a-non-starter/


Do the challenges really outweigh the benefits? It's time to look harder at this rather than give up because it might be tough. ITS TOUGH NOW!!!

Views: 551

▶ Reply to This

Replies to This Discussion

Permalink Reply by Roadrunner on September 24, 2009 at 1:43pm
I think it is likely a little too late...time to do it was 40 years ago before the industry was so interconnected through out North America....
Permalink Reply by John Beardsley on September 27, 2009 at 11:09am
ken is assuming you would give up on exports and close the borders. what about setting up a northamerican sm plan. and if us won't join then try a bilateral with mexico. it could also limit pork production for export. you are absolutely right about don't give up. challenge authority. if the status quo ain't working then change it. who doesn't want less work and more money?
Permalink Reply by Wayne Black on September 27, 2009 at 1:55pm
If you merge US and CDN markets to create a SM industry it would create an economic crisis on it's own.
"China is both the world's largest producer and consumer of pork products. In 2008, China produced 46.2 million tons of pork, accounting for 45 percent of total output of world pork production.
Despite China's high self-sufficiency rate in pork production, it still imports a considerable amount of pork each year from the US, the EU and Canada, which are the three top pork exporters to China."
Exports from the US to China in the first six months of 2009 was 56,785 tons of pork (down 70% from 2008). In 2008 the US was a NET exporter of almost 2 million tons of pork. In 1994 they were a net importer.
So not only will CDN producers have to cut back - with a North American SM scheme the US producers will also have to cut back substantially. (mind you the bulk of the imports and export numbers are with Mexico and Canada - China and Russia will still suffer to a mild degree).
Tough industry to be in when productivity gains are exceeding consumption gains.

John Beardsley said:
ken is assuming you would give up on exports and close the borders. what about setting up a northamerican sm plan. and if us won't join then try a bilateral with mexico. it could also limit pork production for export. you are absolutely right about don't give up. challenge authority. if the status quo ain't working then change it. who doesn't want less work and more money?
Permalink Reply by pigsrgr8 on September 28, 2009 at 4:34am
I am glad someone took the time to have a look at this.....the current system is not working for alot of the producers who are being financially destroyed.

I like the idea of having revenue locked in with a cost of production formula.

Sure there are alot of reasons against setting a system like dairy but we need to look for new ways of doing business...the old ways are not sustainable for most Ontario pork producers.
Permalink Reply by John Beardsley on September 29, 2009 at 9:24am
it is never too late to fix something that is broken something that isn't working. all you need is someone with the balls to see it through.

pigsrgr8 said:
I am glad someone took the time to have a look at this.....the current system is not working for alot of the producers who are being financially destroyed.

I like the idea of having revenue locked in with a cost of production formula.

Sure there are alot of reasons against setting a system like dairy but we need to look for new ways of doing business...the old ways are not sustainable for most Ontario pork producers.
Permalink Reply by JoAnne Caughill on October 21, 2009 at 8:38am
Ken's report looked in Supply Management on a Canada-wide basis, which the other systems (Dairy, chicken, etc) eventually ended up being - national. I understand that they did not all start out that way - but were Provincial first. If this is true, Ontario is well-positioned for a Provincial SM system. Any comments???
Permalink Reply by pigsrgr8 on October 22, 2009 at 10:02am
Does anyone have a link to Ken M's report?
Permalink Reply by Andrew Campbell on October 23, 2009 at 3:40am
Try this...

http://www.ontariopork.on.ca/User/Docs/Research/reports/09-23-09_su...

pigsrgr8 said:
Does anyone have a link to Ken M's report?
Permalink Reply by Andrew Campbell on October 28, 2009 at 6:07am
Here is another new report from the George Morris Centre - and their thoughts on SM in beef and pork.

http://www.georgemorris.org/aspx/Public/Utils/DbFileViewerPopup.asp...

pigsrgr8 said:
Does anyone have a link to Ken M's report?
Permalink Reply by Roadrunner on October 29, 2009 at 12:38pm
Here is the GM plan summed up after they say Supply Management won't work - their suggestions will work great....lets do this......LOL


At this very difficult point in time, the Canadian beef and pork segments would be better served
by focusing on more tractable alternatives than supply management. For the reasons outlined
above, supply management currently serves as a distraction to more realistic approaches for
addressing challenges in beef and pork marketing. Proposals that involve licensing of producers
or production capacity appear to stop short of a supply management scheme. However, there is
no marketing-related reason to license if there is no intent to regulate production, and the
apparent reason to regulate production is to influence prices1. The same points that bring into
question the efficacy and practicality of implementing a supply management scheme apply, in a
more general sense, to licensing.
The beef and pork segments need to challenge themselves and pursue marketing alternatives that
leverage Canada’s natural advantages as exporters, and set aside apparently simple (but
practically difficult) solutions like supply management. This will require focus, as alternatives
will be more challenging to envision and develop than a mandated supply management scheme.
This will likely involve different relationships between producers and processors; reckoning with
a structurally stronger currency and lagging processing efficiency, and an assimilation of
Canada’s natural resource endowments, product information system, and regulatory inspection
system advantages. As it stands, the supply management debate fragments the beef and pork
segments and detracts from this focus.
1
Permalink Reply by Joe Dales on November 10, 2009 at 4:05am
Shaun Haney forwarded his audio interview with Kevin Grier from the George Morris Centre.

Here is the link so you can listen to the interview.

http://realagriculture.com/2009/11/09/should-canadian-pork-and-beef...

Here is Shaun's Opinion on the issue:

"In my opinion neither the pork or the beef business in Canada will ever become supply managed for many of the same reasons that Kevin discusses in the interview. Never mind that I don’t think you would ever get the domestic stakeholders to buy in, but the bigger obstacle is getting this sort of massive change past the WTO. Canada will be under growing pressure to absolve its dairy and chicken quotas in the future so adding to the list of supply managed industries is slim at best in today’s environment."
Permalink Reply by pigsrgr8 on November 18, 2009 at 3:30am
So supply management won't work?

What other options are out there...the news is getting worse each day.

This is a north america issue...I saw Big Sky in SK is asking for creditor protection and in the US big players like Coharie Farms and Coastal Plains have filed for bankruptcy....

▶ Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

January-June Farm Cash Receipts Up 3.3%

Canadian farm cash receipts through the first two quarters of 2025 were up slightly from the same period a year earlier, thanks mainly to strong livestock returns. A Statistics Canada report Friday pegged total farm cash receipts in the January-June period at $49.6 billion, up $1.6 billion or 3.3% from the previous year. But it was livestock that led the way. Total livestock receipts rose 10.8% or $2.1 billion to $21.3 billion in the first two quarters, on account of higher prices for all livestock types except poultry. On the other hand, crop receipts were little changed – inching up $80.2 million or 0.3% - to $25.9 billion. Meanwhile, program payments declined, falling $584.5 million or 20% to $2.3 billion. While cash receipts increased for most crops in the January-June period, StatsCan said those gains were offset by reduced receipts for barley and lower liquidations of deferred crop sales in Western Canada. Total oilseed receipts through the first two quarters of 2025 wer

Alberta Harvest Advances; Yield Potential Improves

Alberta yield potential is improving as the harvest advances. Friday’s weekly crop report estimated dryland yields for major crops at 19% above the 5-year average and 11% above the 10-year average. That marks a 4-point increase in both indexes from the estimates last reported two weeks ago. Meanwhile, the harvest of major crops (spring wheat, oats, barley, canola, and peas) was pegged at about 8% complete as of Tuesday, up 6 points from a week earlier although still behind the five- and 10-year averages of 15% and 12%, respectively. The harvest of all crops was reported at 11% done as of Tuesday, versus 2% two weeks earlier. The average Alberta spring wheat yield is now estimated by the province at 50.6 bu/acre, with oats and barley at 71.8 and 69.1 bu. Canola is estimated at 39.7 bu/acre, and peas at 47 bu. “The extended period of rain and cool temperatures, which occurred while crops matured, appears to have been beneficial with multiple reports of yields surprising to the up

Pulse Market Insight #281

First StatsCan Crop Estimates for 2025 This week, StatsCan issued its first yield and production estimates for 2025 crops. These numbers are based on computer models using satellite vegetation images which, in our view, have been getting better at estimating yields. That said, these first estimates were based on the situation at the end of July; weather and crop conditions have changed considerably since then, some worse but mostly better. As combines got rolling this fall, one common theme we’ve been hearing from many parts of the prairies has been that yields are coming in better than expected. Rainfall was variable across the prairies but in all regions, 2025 was a much milder summer than the last 3-4 years when extended periods of extreme heat reduced yields. If these early positive results continue through the rest of harvest, we wouldn’t be surprised if these initial StatsCan numbers are the low-water mark for the season. For peas, StatsCan reported a yield of 36.6 bu/acre, up

Association of Equipment Manufacturers plans to lobby ahead of fall parliamentary session

Policies that help farmers adopt precision technology and maintain their right to repair are among priorities for the Association of Equipment Manufacturers ahead of the fall parliamentary session. The association says equipment manufacturers are looking to lawmakers to help them adapt in the midst of significant trade challenges and other issues like chronic labour shortages and an infrastructure deficit. Tariffs and the uncertainty surrounding them have led to higher costs for manufacturers. Aaron Wetzel, John Deere’s vice-president of production systems, said in July that the majority of their whole goods and components were exempted from tariffs under the CUSMA trade agreement. However, materials needed to make equipment may face tariffs — for instance, Canada’s 25 per cent tariffs on U.S. steel, copper and aluminum.

New traceability regulations coming for Canadian cattle ranchers

Canadian cattle producers are awaiting new federal traceability regulations following a two-year consultation process. The Canadian Food Inspection Agency (CFIA) released an “owner’s guide” based on early industry consultation. Amendments to the guide are anticipated, but have been delayed by the federal election. Rick Wright, the chief executive officer of the Livestock Markets Association of Canada, expects that it will happen in the first or second quarter of 2026, and after that, there’ll be a one-year soft launch of the enforcement of it. He says the lengthy implementation has been necessary. The regulations represent what he calls an essential emergency management tool in an era of increased global trade and travel risks. The updated regulations are designed to prepare for disease outbreaks by shortening the movement reporting window from 30 days to seven and introducing new requirements for premises identification.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service