NIAGARA-ON-THE-LAKE, Ont. – Even as hog industry leaders told agriculture ministers last week the ticking sound they heard was the industry’s doomsday clock, ministers refused to commit to an immediate aid plan.
The Canadian Pork Council has proposed loans, extended payback times and buyout money to get some of the industry through its worst crisis in 60 years.
Originally, the CPC had asked for a per-head payment. Ottawa rejected that as counter to trade rules.
On July 10, federal agriculture minister Gerry Ritz said the industry’s new proposal is better because it proposes to use existing programs and does not appear as vulnerable to trade challenge.
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“My officials and officials from the CPC have been working day and night to promote that forward, to see how we can make that work, what the actual cost to the fiscal capacity of the federal government and then some of the provincial governments will and could be,” he told a news conference.
Manitoba agriculture minister Rosann Wowchuk said governments still have to decide how best to respond.
“As to how we can ensure that we have a sustainable industry, hopefully we can have some answers for them very soon.”
Ontario minister Leona Dombrowsky said all ministers want to work with hog farmers in their province to find a solution.
“I think what we are looking for, though, is an understanding, number one, what the hurt is, why it’s there and going forward, what’s the very best investment for the industry to make it sustainable going forward,” she said.
The CPC says the hurt is a loss of $40 on every hog sold and the causes are American protectionism, too many hogs for the market, high feed costs, a high dollar and a softening of consumer demand because of H1N1.
Their solution proposed to ministers is up to $800 million in additional government-guaranteed loans to producers and some buyout money to help the sector shrink.
Meanwhile, Ritz insisted that existing business risk management programs will pay out to hog producers this year.
“I can assure you that the programs that we have in place will kick in,” he said. “There will be cash going to the hog sector through these programs. Those are not loans. That money will be going out.”
