Manitoba hog producers will begin paying a special levy this summer to fight allegations that Canadian hog exports are unfairly subsidized and are undercutting markets in the United States.
The Manitoba Pork Council last week approved a special levy of 50 cents per animal on all Manitoba pigs sold. Provided there is provincial government approval, collection of the levy will begin July 1.
In March, U.S. hog producer groups alleged Canadian producers receive unfair subsidies and are selling hogs across the border at prices below those in Canada. The U.S. Department of Commerce is investigating.
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U.S. producer groups like the National Pork Producers Council want countervailing and anti-dumping duties imposed on live hogs from Canada.
The cost in Manitoba to defend against the allegations could reach $6 million in the first year, said Manitoba Pork Council chair Karl Kynoch. The money from the special levy will support that defence.
“We have to defend this to the best of our ability or it will destroy a lot of the producers relying on that market.”
Although any tariffs resulting from the trade action would apply only to exports, Kynoch said all Canadian hog producers have a stake in the outcome, since tariffs on exports could affect domestic hog prices.
The need for the special levy will be reviewed every six months. It will end once the costs of defending against the trade action are paid.
“None of that levy will go into general revenue,” Kynoch said.
Manitoba and Ontario are the leading exporters of live hogs to the U.S.
Ontario also is planning a special levy to defend against the trade action. The levy of 80 cents per market hog is to take effect June 14, said Keith Robbins, Ontario Pork’s communications director. It is expected to raise at least $4 million in the first year.
A single defence led through the Canadian Pork Council had been discussed but there were differences about how much money should be invested and who would be the lawyers.
