Building a made-in-Canada hog price has gone to the national table.
The Canadian Pork Council is working with consultants to come up with pricing options with a report expected later this year.
The Canadian industry uses the U.S. base price as the basis for what producers receive, but the number of hogs used to calculate that price is small and probably does not represent what producers are actually receiving, said Gary Stordy of the pork council.
The issue has been debated for some time at the provincial and national levels with no clear solution.
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U.S. hogs averaged $106.69 on a carcass basis July 11, down from $110.21 July 4.
‘There have been hurdles to try and overcome it because it is so diverse in how to approach it,” he said.
“We are trying to create a positive environment for the pork industry to spur investment. When there are questions and negativity regarding the price, it is only in the industry’s best interest to try and provide some clarity to that,” Stordy said.
There are great opportunities to grow exports with new trade agreements.
“If we had the supply, there appears to be the market opportunity. If we can capture that by having a Canadian price to encourage investment in the industry and even for producers who are looking to transition into the industry, we need clarity.”
About 70 percent of Canadian production is exported, which includes live animals and pork. At the same time, Canada imports about 30 percent of it domestic consumption, mostly to fill the demand for ribs and further processed meat.
