Chaos prevails in Manitoba for producers trying to market their hogs, according to the president of the Manitoba Pork Marketing Co-op.
Gerry Friesen said a lack of price transparency means producers have no idea of the true market value of their hogs.
“Suitcase” marketers have also jumped in, he said, and are making promises to producers that they don’t always keep.
Meanwhile, the system of moving hogs to market is becoming inefficient.
Friesen cited the number of assembly yards “popping up” across the province as part of the inefficiencies that eventually become an added cost to producers.
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His comments, made last weekend at the provincial NDP’s annual convention, were followed by a request that the New Democrats, elected last September, determine whether the open-market policy is working for hog producers in Manitoba.
Friesen did not include in his request a return to single-desk selling. He said consultations are needed to gauge what kind of marketing the province’s hog producers want.
“Let’s do a review of what open marketing has done and let’s see if we’re happy with that.”
Single-desk selling was eliminated in Manitoba July 1, 1996 under the Conservative government of Gary Filmon.
The elimination of a single desk was meant to entice more hog processing to Manitoba. The strategy appears to have worked with Manitoba now poised to become Canada’s hog capital.
More expansion
Maple Leaf Pork last year completed its $120 million hog processing plant at Brandon, and J.M. Schneider Inc. recently announced plans for a $125 million plant expansion at Winnipeg.
Manitoba agriculture minister Rosann Wowchuk said the province may review its open-market policy if there is enough interest from producers. However, no plans have been made for such a review.
To address some of the immediate concerns of producers, Friesen wants a mechanism that sets a benchmark price for hogs. Included in that price would be the premiums offered by buyers.
As a safeguard against “suitcase” marketers, Friesen wants laws brought in that would require anyone marketing hogs on behalf of producers to be licensed and bonded.
