The excellent attendance, a great program, and substantial interest are how chair Rick Préjet described the AGM of the Manitoba Pork Council held on April 14.
While things keep changing for the hog industry, with grain prices and input costs varying, Préjet said last year was good for the hog industry in Manitoba.
“Although there were some high grain prices, we had pretty good pig prices. As we advance over the next year, you’d expect the pig prices to be down and have dropped. Producers are bleeding some red ink right now.”
Grain prices will continue to be a key factor for hog producers suggesting corn and other grains should get back closer to historical levels and input costs come down.
“Then we’ll limit the pain over six or eight or ten months.”
Olymel closing a plant in Eastern Canada and HyLife shutting down Premium Pork Producers in Windom, MN, hurts everyone.
“For a producer to be successful, we need everybody else in the value chain to have some success too. So we’re looking closely at pork sold at the retail level, who gets what percentage of that dollar.”
He said, unfortunately, the producers aren’t getting a big cut, the processors are getting a significant reduction in their cut, and the retail side has issues too.
The question is, what can we do about it? In the coming months, there will be significant challenges to bring that back in line so everybody is healthy through the whole value chain.
In Quebec, it’s a process of cutting back on pork production to reduce the number of producers in one way, shape, or another.
“It’s a double-edged sword in many ways. As packers aren’t there anymore in Quebec, those pigs have to go somewhere, and some come to Western Canada as far as Red Deer, AB, but many of them are going to go down to the U.S.”
Préjet said that always raises a few eyebrows about trade issues. Serious talk surrounds a new processing plant for Ontario that is still for or five years away before they can even take in their first pig. So in the meantime, Quebec is working through a plan where some farms may decide to renovate, rebuild or shut down. It may also include a buyout program for some Quebec producers to reduce production.
Concerning the voluntary country of origin labelling issue raising its trade-hurting head, Préjet said MPC is constantly in touch with their friends in the U.S. in the meat industry.
“We’re getting assurances that a may not make it through there, but we’re not taking anything for granted.”
He said it’s important for Americans to understand how integrated Canada and the U.S. markets are and the need to work together. So anything affecting the trade between the two countries is unsuitable for anybody.
Préjet said with the provincial election this fall, Manitoba Pork Council members will talk to the provincial government, the opposition, and several candidates to remind them what the hog industry is about and how it’s doing a great job. Telling them it’s sustainable and environmentally friendly is a big focus.
Other issues include labour shortages and dealing with the wild pig issue.
The important thing is that a good MPC board of directors works well with the other provinces and the Canadian Pork Council.
“As long as we collaborate and consult and everybody’s pulling in the same direction, we can accomplish much. So while we have some issues and profitability problems in the following months or a year, I’m still looking positive long-term with the industry and what it can contribute to the economy.” •
— By Harry Siemens