The suspension of two Canadian processing plants from shipping to China is a costly reminder of the need to be vigilant in preparing paperwork, says a spokesperson for the Canadian Pork Council.
Gary Stordy, Canadian Pork Council’s director of government and corporate affairs, confirmed recently that officials discovered errors in the labelling on two shipments destined for China: One from the Olymel plant in Red Deer and the other from Quebec-based Drummond Export.
“The situation hasn’t changed from a month ago. It is a temporary suspension on two facilities in Canada,” said Stordy.
There has been no change in the three weeks since the temporary suspension was announced, nor has there been a marked impact on exports overall, he said.
“Bear in mind, there are 34 facilities that are able to ship to China and this is two that received a temporary suspension, frankly due to a kind of labelling-paperwork problem here in Canada.”
Red Deer-area producer Will Kingma, a former director with the board of Alberta Pork, confirmed that there has been no impact on producers.
“The biggest point that we can make out of all of this is that the reason there is no impact on producers is because our price is priced directly out of the US, with factors that are deducted from it, so whatever happens here doesn’t really affect the price,” said Kingma.
Deliveries to the Red Deer plant have also not been affected, he said.
“If anything, (Olymel) would like to take some more still. I think they’re still able to move they’re product; it’s just that they’ve got to work this thing out with China,” he said.
Stordy said there is no way to tell how long it will take to resolve the issue and lift the suspension.
“It is generally going to take some time to re-engage. As to how long, it’s not clear. It is a temporary suspension – that is more preferable to a complete suspension or de-list. It is important that it was a measured response to an unfortunate situation of paperwork being mixed, and it really is the opportunity where the plants have to go through their process, document it, and then convey how it’s not going to happen again,” he said.
Meanwhile, the message is clear to all processors that they need to ensure that their staff understand the impact of mislabelling and ensure that all paperwork is handled correctly. “It is so important that those that are involved in shipping globally actually have employees dedicated in their facilities to making sure that the product, whatever market it is going to, that the paperwork is accurate.”
While acknowledging that some people have made assumptions about hyper-vigilance related to trade relations between Canada, Stordy said that, in this instance, the errors did exist.
“It really is a situation where there is a lot of discussion taking place about China, and escalation of assumptions that this is connected to Canada-Chinese politics or vice versa. What it really is, is an unfortunate situation that happened where there was some mix up with the information that needs to be corrected in order to regain access.”
Richard Vigneault, head of corporate communications for Olymel, said the temporary suspension of shipments from Red Deer to China has not had a direct impact on operations.
“We are in contact with the authorities and so far, there is nothing new. There is just a status quo. The operations are still going on at the Red Deer Plant, but I can’t comment on any aspect of it,” Vigneault said in an interview with Prairie Hog Country on May 22.
Statistics Canada figures from 2017 indicate that Canada’s total pork export amounts to just under $4 billion per year. China was our third largest customer, behind the United States and Japan, accounting for roughly $500 million. The US export was just ahead of Japan, at $1.4 billion and $1.2 billion respectively.
Stordy said the demand for pork remains strong and those markets can readily absorb any excess product that may result from the temporary suspensions at Olymel and Drummond Export. •
— By Brenda Kossowan