Winnipeg’s new standing as a major Asian trade corridor might not boost the province’s pork exports now, but insiders say both producers and processors will benefit once the initiative takes flight.
The initiative, called Winnport, plans to develop an international air cargo transportation and distribution centre based at Winnipeg International Airport.
Bill McLean, general manager of J. M. Schneider in Winnipeg, said the plan will give Manitoba more clout as it becomes one of the world’s largest processors of hogs.
“Anything you can do to facilitate value-added is going to be a wonderful thing and that’s really what this new trade corridor and Winnport is all about,” McLean said.
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“To be able to fly perhaps directly into Winnipeg from Japan and to be able to ship samples and facilitate business relationships like this is going to be very good for business.”
It’s too expensive to ship fresh chilled pork by air now, he said.
“To put a container in an aircraft that is meant for passengers, not freight, can cause some problems.”
It costs about 20 cents per pound to ship over land and by vessel, compared to about $1 by air.
Air cargo technology has to catch up to vessel transportation capable of shipping chilled containers that won’t change by more than half a degree Celsius during the journey.
“That technology is not yet available or being offered to us in Winnipeg but it’s part of our discussions with Winnport.”
Mark Pindera, a spokesperson for Winnport, said initial destinations include China, not currently an importer of pork, and Malaysia.
When the plan first took shape, Winnport targeted Japan and Korea as primary destinations, but Japan has some of the tightest trade restrictions in the world.
Pindera said the agency needed either China or Japan to get the project off the ground, and negotiating air agreements with China was faster.
“We certainly plan on expanding ourselves as quickly as we’re able to absorb ourselves into the market.”
Winnport initially plans to ship manufactured goods, pharmaceuticals and assembly line material, he said.
“There’s a huge push to develop manufacturing and assembly plants in China and that kind of stuff is originally sourced in North America.”
But that doesn’t mean Winnport has overlooked opportunities in the pork processing sector, he said.
“It’s not a question of have we forgot about Manitoba agri-products, but a question of how we can prioritize our current entry into the air cargo industry,” Pindera said.
