VERMILION, Alta. – An Alberta hog producer wants his colleagues to consider supply management as a way to stabilize their industry.
Don Gulayec, who operates a 900 sow farrow-to-wean hog operation near Derwent, Alta., told a recent Alberta Pork regional meeting that producers need to look at all options to save their industry.
“When you start to look at chicken or dairy, as soon as their industry was supply management established, those places became profitable,” Gulayec said.
Without stability more hog producers will be forced to leave the business and processors will soon follow, he added.
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“In the hog industry that stability isn’t there now.”
Alberta Pork chair Jurgen Preugschas immediately dismissed the idea, saying supply management would have dramatic consequences.
“If we’re thinking of doing something like supply management, that means three out of four of us are gone,” he said.
“The reality of it is, if you’re willing to reduce your industry by 75 percent then you can look at it.”
He said three-quarters of Canadian hogs are exported and a supply management system would likely invite World Trade Organization challenges and a host of other problems.
Supply management was raised during round table discussions in June, he added, but was shot down instantly and almost unanimously by those attending the meeting.
“A simple answer is producers have told us don’t go there,” Preugschas said.
“The reality of it is it would reduce the industry.”
Gulayec said while there may not be an appetite for supply management now, six more months of losses may change producers’ perspective.
“If there is no change in the price in six months, there will be an appetite for it because there will only be half the people,” said Gulayec, adding he doesn’t believe supply management would wipe out the industry.
