Export trade is slumping and Canadian hog producers hope H1N1 doesn’t spread among the Canadian herd.www.producer.com/standing_graphics/web_exclusive_green.jpg” width=”125″ height=”25″ align=”right”>
The discovery of an infected herd in Alberta provided excuses to countries like Russia and China to impose or extend partial bans on Canadian pork, as they have on pork from Mexico, the United States and other countries.
Canada and the United States report sharply lower export shipments, upsetting farmers who say there is no reason to shun pork.
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“Those who banned our imports is a knee jerk reaction, a simple reaction to the hype being created,” said Canadian Pork Council chair Jurgen Preugchas.
“The easiest solution is slamming the door shut. It’s very unfortunate producers, processors and packers are taking the brunt of it.”
Canada said it will pursue World Trade Organization action against China if it maintains its ban on pork and hogs from Alberta.
“China is operating outside of sound science … should they continue on, of course, there is a WTO challenge which we would not hesitate to enact,” agriculture minister Gerry Ritz told Parliament.
Canada Pork International estimates pork exports from Canada slumped 10 to 15 percent since the outbreak. The U.S. Meat Export Federation said before the Alberta situation arose that its exports were down eight to 12 percent because of various post-H1N1 bans.
Saturday slaughter at U.S. hog plants slumped 63 percent from year-ago levels in response to the slowing trade.
The sudden slump in demand sent cash and nearby futures prices tumbling, from about $70 US per hundredweight to less than $56 by May 4. Prices fell all week after the initial announcement of the disease outbreak April 27 and continued falling May 4, but some traders thought the selloff was getting carried away.
However, further-out futures months fell less, suggesting market players believe the disease panic will be relatively short.
The slump in hog and pork prices is a blow for producers, who had been enjoying a strong price recovery after last year’s low prices and financial losses. Cattle prices have continued to be weak, but hog prices had been stronger recently and trending higher, offering hopes of a profitable summer.
The world’s leading health and veterinary authorities are united in saying that pork carries virtually no risk of carrying the new strain of H1N1, but that has not prevented a number of countries from restricting trade.
Many see the strong Chinese reaction, which has included quarantining visitors from Mexico and those in close contact with them, such as Canadians on the same air flight, as an attempt to appear serious about this outbreak after much criticism of trying to hush-up the SARS outbreak.
Some have accused the Russian government of using H1N1 as a non-tariff trade barrier.
However, the Russians say they don’t trust what the world’s leading health and trade authorities say.
