George Matheson, Chair of Manitoba Pork

For 2020 the Chair of Manitoba Pork is looking forward to an end to the trade war between the United States and China that has depressed Canadian live hog prices.
Heading into the new year, live hog prices and disease management will be top of mind among Manitoba’s pork producers.
George Matheson, the Chair of Manitoba Pork, said 2019 looked to be a good year but turned out to be disappointing with the average price for the year lower than expected.
“Pork producers pretty much right across Canada take the U.S. national price as their price,” said Matheson. “What happens between the U.S. producers and their trading partners is most significant to Canadian producers in regards to price. Unfortunately, we saw a tariff war between China and the U.S. and Manitoba suffered collateral damage. Without that tariff war, our prices would be much higher due to African Swine Fever creating a significant worldwide shortage of pork.”
Matheson said, except for a strong second quarter, pig prices are a significant disappointment for producers in 2019. Current December prices are lower than a year ago as Canadian producers continue to feel the effects of collateral damage from U.S. and Chinese tariff retaliations.
“But all is not gloom and doom! New feeder pig and sow spaces are increasing in the province, with assistance from Manitoba Pork’s Swine Infrastructure Development Corporation,” he said. “There’s a renewed sense of cooperation between processors and producers. Both sectors are working together for the maximum benefit of each other.”
While ASF continues its devastating movement across the globe, North America has successfully kept it at bay.
“Nonetheless, Manitoba Pork continues to work on our Emergency Response Plan in case this deadly scourge does reach Canada. We are planning for the worst and hoping for the best. Manitoba is preparing to deal with the infection while continuing to work to keep it out of the country,” said the MPC chair.
Matheson said a real disappointment was the number of PED cases in Manitoba in 2019 rose above that of 2017, creating a challenge, and he suggested a different approach to eradicate the infection.
“We thought we had PED under control and on the road to eradication – yet it returned with a vengeance in 2019. We need a different approach if we are to have any hope of putting an end to this dreadful disease in Manitoba,” he said. “Among other initiatives, Manitoba Pork continues to work closely with the CFIA to make the Hog Transporter Program a reality.”

Matheson added, “This important project will maximize biosecurity for livestock transport trailers returning from the U.S.”
Matheson said it was an honour for Manitoba Pork to receive a philanthropy award this year for their supportive and charitable work in the community.
“From generous donations of pork, to helping with food service education programs and supporting healthy lifestyles, Manitoba Pork is proud to lend a hand to our community over the years.”
In the U.S., the National Pork Producers Council applauds news of a mini trade deal with China and during 2020, will press for unrestricted market access for U.S. pork in China.
NPPC President David Herring told reporters in a teleconference among priorities will be gaining unrestricted market access to China to address its need for affordable pork and expanding the export of pork to other ASF affected countries.
“China represents an unparalleled opportunity for U.S. pork producers to provide the highest quality and most affordable pork in the world. It’s no secret that China needs reliable, affordable sources of pork,” said Herring. “No source is better positioned to meet this need than American hog farmers.”
According to Iowa State University Economist Dermot Hayes, if the U.S. gained unrestricted access to the Chinese market, it would reduce the overall trade deficit with China by nearly six percent, and also generate 184 thousand new U.S. jobs and produce 24 and a half billion in new sales all in the next decade, he said.
Additionally, with ASF spreading in many parts of Asia, NPPC hopes to expand export opportunities in the Philippines, Vietnam, Thailand, Indonesia, and other countries.
Herring stressed pork is the preferred protein in these countries and growth opportunities for U.S. pork are significant.
According to Matheson in Manitoba, the same opportunity exists for producers here, except for the current price structure the Manitoba and the Canadian price structure tied to the U.S. pork industry. He would like to see that less dependent on the U.S. market price. •
— By Harry Siemens