Canada’s hog industry is expecting an announcement that there will be federal funding to help producers cope with disease issues.
But Canadian Pork Council executive director Martin Rice does not expect Ottawa to respond to all the industry pleas for help, including support for export market development and a break on cost-recovery fees.
“We have been in a dialogue and we are hoping there will be a package soon to address some of our issues but I must say on a couple of our points, they have been less than positive,” Rice said.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Months ago, the government signaled that a hog industry package was in the works.
Last spring when federal agriculture minister Chuck Strahl changed the rules of the Canadian Farm Families Options Program to restrict 2007 funding to low-income farm families that had qualified for help in 2006, he said it would mean the Options budget would be underspent by $230 million.
He said the money would go to other farm programs and hinted one area was the hog industry that was facing a “perfect storm” of problems.
“We’ve got several things in the works right now that are specific to specific sectors in the industry that need some particular help and I hope we’ll have some announcements over the next month or so,” Strahl said.
He said one of the new programs could be directed to the hog industry that is facing cost increases, lower export revenues because of a high dollar, income declines, disease and a shrinking processing sector.
“If we want the industry to survive and be robust as it goes through this cyclical problem, I think we have to step in and help somewhat.”
Rice said the industry picked up on that hint and has been trying to negotiate a deal.
“I believe there will be a package on disease including more vigilance to protect us from disease and maybe an increase in the stocks of vaccine,” said Rice.
However, the feedback has not been positive to arguments that cost recovery fees are a $20 million bill that American competitors do not face and that the hog industry needs an “export enhancement” program.
“On both of those, they have listened but I guess I would say that the reaction has not been encouraging,” said Rice. “We will continue to make our points.”
