EDMONTON – Alberta pork producers are seeking short-term aid to see them through their current economic crisis, in which returns on market hogs are well below the cost of production.
A meeting will be held Dec. 17 to discuss a sustainability fund to support producers until a hog price insurance scheme is ready this spring or markets improve.
Alberta Pork, the Western Hog Exchange, Alberta Agriculture, Alberta Financial Services Corp. and hopefully federal and provincial packers who purchase pigs from Alberta farmers will discuss emergency assistance as well as discuss a new payment grid for producers.
“It is in the early stage of development. There are no guarantees,” said Jim Haggins, Alberta Pork chair, at the organization’s annual meeting in Edmonton yesterday.
“We want packers to work with us on this support fund.”
The program needs to be retroactive to Nov. 1 and Alberta Pork is willing to provide funds from its own reserves if that helps, Haggins told the delegates.
According to the hog exchange’s published prices, Alberta producers received an average price of $1.50 per kilogram in 2005. Prices have been falling steadily since. In 2009, the average price was $1.33 and this year will close at $1.25 per kg. The cost of production is around $1.40 per kg.
“We have lost so many producers and we will lose so many more this winter. Even if we come up with a price model change, I don’t know how many will survive,” said Alberta Pork director Rocky Morrill.
Deputy agriculture minister John Knapp said the government is willing to listen and he reminded producers they are eligible to receive an advance through the AgriStability program for 2010.
