Ontario Agriculture

The network for agriculture in Ontario, Canada

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: 512

Reply to This

Replies to This Discussion

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....
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?
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?
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.
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.
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???
Does anyone have a link to Ken M's report?
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?
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?
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
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."
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

Pulse Market Insight #250

Even though there are still three months left in the 2023/24 marketing year, most of the focus is on next year’s crop. Most of last year’s crop has already been sold but some farmers are still holding old-crop supplies that need to be marketed. At this time of year, the opportunities and risks for remaining old-crop supplies are magnified. The relationship between old-crop and new-crop bids is an important signal about how much risk and how much opportunity is left as the marketing year winds down. In general, a large difference between price levels means greater risk for remaining old-crop supplies. In 2023/24, prices for some pulse crops experienced extreme highs, which add to the vulnerability as the year winds down with the risk of a sharp drop outweighing the potential for higher prices. Old-crop prices for green peas are still running close to record highs at nearly $4.50 per bushel higher than the average new-crop bid. Once buyers have enough green peas to fill remaining sales

US Corn Ending Stocks Down on Greater Ethanol, Feed Demand

The USDA has trimmed its 2023-24 US corn ending stocks estimate from last month amid heavier ethanol and feed demand. In its latest monthly supply-demand estimates Thursday, the USDA pegged ending stocks at 2.122 billion bu, down 50 million from the March projection but still well above the previous year’s 1.36 billion. The USDA number was above the average pre-report trade guess of 2.109 billion, with futures trading 3-4 cents lower following the report’s noon ET release. On the demand side, corn used for ethanol was raised 25 million bu from March to 5.4 billion bu, compared to 5.176 billion in 2022-23. Feed use was bumped an identical 25 million bu higher to 6.805 billion – versus 6.558 billion last year – based on indicated disappearance during the December-February quarter. The USDA surprisingly left its 2023-24 Brazil corn production steady from last month at 124 million tonnes. Going into the report, most trader and analysts were expecting the Brazil crop to be lowered to

Map: Late Season Snow Improves Saskatchewan Runoff Conditions

Late season snowfalls at the end of March have improved spring runoff conditions in Saskatchewan, even as moisture levels in many areas of the province remain below, or well below normal levels.  In its latest spring runoff update on Friday (see map below), the Saskatchewan Water Security Agency said a mid-March snowstorm increased the expected additional runoff volumes to some degree across southern Alberta and southwestern Saskatchewan.  Much of this area across both provinces was snow free prior to the storm, the report said, adding that how quickly the snow melts will impact how much additional runoff will be experienced. With the area being so dry prior to the snowfall event, if a slow melt occurs, a lot of the water will infiltrate into the soil, it said. Another snowstorm in late March brought 5 to 15 cm of snow across most of eastern Saskatchewan, with the heavier snow falling in the northeastern portions of the grain belt.  A decent snowpack still exists in the Assiniboine

Livestock expansion unlikely until 2025, economists say

Despite some market signals that usually result in expansion, cattle and hog producers are likely to wait until at least 2025. Numbers are down for a variety of reasons in the cattle industry, says Derrell Peel, Extension livestock marketing economist with Oklahoma State University. Those factors include drought conditions throughout much of the country. “I haven’t seen anything starting despite these record high prices we’re seeing for calves,” he says. “Those price signals usually get expansion going, but it hasn’t happened yet.” Thousands of cows were culled in 2023 and going into 2024 because of drought. Producers struggled to find adequate grass to maintain the cattle inventory. “They had to make a difficult call,” Peel says. Because of the record prices last year, he says many producers sold heifers to take advantage of that income. Peel says because of that, it’s going to take longer to rebuild the herd. “Last year’s beef cow herd was the lowest we’ve seen since 1961, and

Consistency key to maintaining beef industry value

In the beef industry, consistency is key to just about everything. From sire and A.I. choices to ration options to market opportunities, producers can add value at each production stage based on their decisions. Garrett Englin, cattle buyer for JBS USA, said consistency is key for packers, too. Speaking at the 2024 Feedlot Forum in northwest Iowa, he told attendees how a current trend is helping. “Having cattle at the same size and same weight is key, and the beef-on-dairy crosses help a great deal in reaching and maintaining consistency,” he said in an Iowa State University Extension news release. “Being able to provide the same product to consumers starts with getting similar cattle from producers.” At the 2024 Feedlot Forum sponsored in part by the Iowa Beef Center and Iowa State University Extension and Outreach, Englin was asked to talk to the group about the beef-dairy cross that’s becoming very popular. A big part of how this approach works is the narrowing of genetic divers

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service