The next year is going to be busy one for the Canadian Pork Council.
Among the things on its plate is a made-in-Canada hog price, a review of the Code of Practice, getting Pig Safe/Pig Care launched, pushing for a decision on a promotion and research agency and picking up the pace on advocacy. And trade is always on the menu.
In his presentation at the Saskatchewan Pork Industry Symposium, John Ross, executive director of the Canadian Pork Council, expressed frustration with the federal government.
“The Canadian Pork Council is working with the government to try to encourage them to move that business risk management suite to a better space for the hog industry,” he said.
He told delegates of a July meeting with federal, provincial and territorial ministers where business risk management was discussed. It was decided the review was incomplete and the government would report back next July. It was not what Ross wanted to hear.
“It is the job of the pork council to make sure they actually do a review and that the review matters,” he said.
He said the check-off agency remains a priority and hopes the federal Liberal government will get moving on it.
“In 2016, the Federal Minister of Agriculture (Lawrence MacAulay) received a recommendation from one of his agencies —the Farm Products Council of Canada — and the Farm Products Council recommended that he put in place a check-off agency for pork which would enable us to collect a check-off on imports that come into this country.
“As you are all aware, you all pay a check-off at the provincial level on the production you have here at home. We would like to have a similar check-off on imported product … For three years from the office of Mr. MacAulay crickets; no movement on this file. It’s, quite frankly, disappointing at best.”
With a federal election coming next fall, Ross said the council is lobbying to become part of party platforms. He cited examples of what that could include.
“Really what you are looking for is a line in there that the Liberal Party is in favour of a different business risk management suite; the Conservatives have something on trade and perhaps something on animal health on a different platform. We are trying to influence that now.”
He said the council likes to tell/remind people about the contribution the industry makes to the Canadian economy and the difference it makes in lives.
“This is money that is in rural economies and if you think about things like schools, gas stations and doctors and all that kind of stuff, it’s handy to have money coming to the rural community. That’s what that’s about. We are an exporting nation; we are making a difference to the balance of payments; we are bringing money into Canada.”
In 2017, 1.2 million tons of pork– worth $4 billion — was exported to 87 countries. “We are diversified, not wholly dependent on a single market. Somebody had to make that pork, somebody had to move that pork; think about the jobs associated with that.” Ross said he can’t do a presentation without talking about trade.
“If you think about the agenda for trade policy and as frustrated as we may be with government and their inaction on things like the check-off agency, trade is one where we are making some headway.”
“The U.S. and Mexico are obviously two important markets for us and have been important for a long time. The renegotiation of NAFTA and the reset of NAFTA were very important for us.”
Ross said the industry didn’t achieve anything, but didn’t give up anything of consequence.
“We just didn’t want to go backwards.”
He said the new CPTPP deal is good for Canada, singling out Chile, New Zealand, Australia and Japan. “These markets are super important for Canada and all of them are members of the CPTPP. Canada is one of the first six nations to rarity that agreement. We get started at the end of December with tariff reductions in Japan and Vietnam. Japan is arguably our most important market and Vietnam has all kinds of upside potential for us.
“Not only do we get these reductions, we are getting ahead of our single largest competitor — the United States; we have an advantage to these markets.”
Ross said negotiations on new agreements and new access are being held “pretty much across all fronts. That’s a pretty positive story.”
There is a not-so-positive story as well.
“Exports matter, but they actually show up in the price of Canadian pigs. Remember one of those things we were talking about was the made-in-Canada price. We formula the price off the U.S. market largely based on the sales of U.S. live hogs. That reported price represents less than three per cent of U.S. live sales and it is declining.”
He referred to U.S. hogs as being the “ugliest made in the world. And we’re using that as a reference point for Canada? And the question is how is that connected to the Canadian market place?
“We had a market in 2018 that was wanting to go down. It had a lot of supply in front of it and then Trump tweeted and down she went.
“Why did our price tank? Canadian pork was actually selling better and for more money. We are trying to figure it out. I have a consultant study and expect it to get going in January.”
He said the Code of Practice for the Care and Handling of Pigs will be reviewed. He said of the 104 requirements, 103 have been “figured out.”
“The big one we can’t figure out is how to get to group housing by 2024. We remain committed to make the journey. This industry will transition to group housing. We just can’t get there by 2024 and it’s not for a lack of will; it’s simple economics.
“If I built a brand-new barn in 2013 — a state-of-the-art barn — and had exactly what was needed to manage animal care and exactly what was needed for productivity on that farm in 2013, there is no way I would have that thing paid off by 2024. If you go to the bank and say, ‘I need more money,’ it is not likely to happen. In December we will formally kick off the review process.”
He said the review will likely take a year to finish.
“If it is necessary to amend the code, we expect to have those amendments in place.” It is indeed going to be a busy year for the pork council.
“We’re going to rely heavily on our provincial partners to move us along down that road, but we’re going to get after it.” •
— By Cam Hutchinson