Man. hog stabilization plan awaits gov’t OK

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Published: January 18, 2013

The Manitoba Pork Council’s hog industry stabilization proposal is in the hands of the provincial government.

The council unveiled the program two months ago as a way to save the province’s hog industry.

Despite the delay, Manitoba Pork chair Karl Kynoch remains confident the province will support the program.

“Minister (Ron) Kostyshyn said the agriculture department is fully onside to move it forward to do something,” he said.

“I’ve had no indications that they’re not going to be supportive.”

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Kynoch and Manitoba Pork general manager Andrew Dickson introduced their plan to stabilize the province’s faltering hog industry at an early November meeting with 150 hog producers in Portage la Prairie.

Canadian hog producers were hemorrhaging money at the time as the summer drought in the U.S. Midwest propelled corn prices to record highs.

Manitoba Pork estimated in September that producers were losing $40 to $50 on every hog sold.

Dickson said at the time that the hog stabilization program would be a line of credit that producers could access through the pork council when costs exceeded market returns.

For example, a producer in the program would receive a payment of $30 per hog, minus a $5 levy, if the average cost was $175 per animal and the market price was $145 per hog.

When the market turned around, the producer would continue to pay the $5 levy on every hog sold until he paid off his stabilization account.

The pork council scheme doesn’t expect the province to contribute to the program, but it does require the government to guarantee a line of credit of $75 million.

However, the Treasury Board and the provincial cabinet haven’t agreed to backstop the loan, which is why the program is stuck in neutral.

“Things are moving a little slower than we want,” Kynoch said, adding he is hopeful the program will be launched March 1.

“We’ve done everything that we can, in dealing with lawyers and developing the program. We’re basically in a period where we have to wait for the government.”

Kynoch said most farmers support the concept, based on producer response at Manitoba Pork meetings in November.

“In reality, what the producers would like to see is a cash injection. But at the end of the day they realize that’s not an option.”

About the author

Robert Arnason

Robert Arnason

Reporter

Robert Arnason is a reporter with The Western Producer and Glacier Farm Media. Since 2008, he has authored nearly 5,000 articles on anything and everything related to Canadian agriculture. He didn’t grow up on a farm, but Robert spent hundreds of days on his uncle’s cattle and grain farm in Manitoba. Robert started his journalism career in Winnipeg as a freelancer, then worked as a reporter and editor at newspapers in Nipawin, Saskatchewan and Fernie, BC. Robert has a degree in civil engineering from the University of Manitoba and a diploma in LSJF – Long Suffering Jets’ Fan.

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