WINNIPEG (Staff) – Hog prices in Manitoba were not affected by the change to an open market, but the way they were reported caused some confusion.
As of July 1, Manitoba Pork no longer has a monopoly on buying hogs.
The provincial government now collects sales information from the four processors and prepares an average. On July 3, that average was $211.38 per 100 kilograms.
Rene Chabidon, assistant general manager at Manitoba Pork, said the new system is confusing because farmers are accustomed to the 100 index price, which relates to the quality of the carcass.
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Chabidon said the equivalent index price for July 3 was $191.29.
Producers use the index price system to compare Manitoba prices to those in Ontario and Quebec. Many also based weanling prices on the index.
Chabidon said the first week of the new system was a bit rocky because of the Canada Day holiday.
Short weeks put a lot of pressure on sales and marketing at the best of times. But he said the agency was able to fulfil all orders from processors.
“Some producers are dealing directly through the open market,” he said. “But so far, it’s very minimal.”
All producers will now pay $1.01 per market hog to Manitoba Pork for the services it provides for the whole industry, such as market development, promotions, research, education and training.
Buyers of hogs will deduct the levy. Chabidon said this will include the province’s four processors, several smaller abattoirs, one other marketing agency, and three brokers.
Producers who sell weanlings outside of Canada will also start paying a smaller levy to Manitoba Pork as soon as the agency and provincial government work out a collection system with Canada Customs.
Chabidon said the levy will be set at around 20 cents per weanling.
