The spectre of mandatory country-of-origin labelling in the United States is scaring some Manitoba hog farmers away from building new barns.
At least two separate sow barn projects have been shelved since late fall.
“They’ve been put on hold until the confusion over country-of-origin labelling is resolved,” said Manitoba Agriculture swine specialist Mike Yacentiuk.
These sow barns were designed to produce piglets to be shipped to U.S. feeder barns. It is unclear how the labelling, which would require that all pork from outside the U.S. be noted, would affect piglets born in Canada but fed in the U.S.
Read Also
Russian pulse trouble reports denied
Russia’s pulse crop will be larger than last year, which won’t help prices rally from their doldrums.
“Right now there are no answers,” he said.
Uncertainty is the enemy of investment, so these projects will probably await a clear outcome before proceeding, Yacentiuk said.
Voluntary labelling guidelines were written into the 2002 U.S. farm bill. They are the framework for man-datory regulations due in September 2004.
The U.S. Department of Agriculture is now seeking comments about the move to mandatory regulations.
Manitoba Agriculture hog market analyst Janet Honey said hog producers considering expansions aren’t sure how the labelling will affect them.
Some assume country-of-origin labels will not be made mandatory and have gone ahead with new hog barn projects. Others think there is a chance that Canadian meat will be segregated in U.S. stores, so they are holding back.
“Until it gets resolved it’s going to be a confused situation,” said Honey.
University of Missouri agricultural economist Ron Plain thinks country-of-origin labelling is a bad idea for American farmers. He said a growing number of analyses show that it will cost American producers more than it will help them, and a number of influential producer groups are campaigning against it.
“There’s a fast-growing concern here in the States about country of origin,” said Plain.
“There’s a growing awareness that this could be a potential disaster for U.S. hog farmers.”
Honey said hog barn investors are worried and taking a wait-and-see stance. If mandatory labelling is removed, hog barn construction could get back on track.
“If they can get that word ‘mandatory’ out of the farm bill, then I think it would be business as usual,” Honey said.
