Pork producers want problem addressed

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Published: January 5, 2006

During this election campaign, Canada’s hog producers want politicians to talk corn.

They want to hear that the political parties are committed to cleaning up the trade mess that is turning Canadian producers against each other.

“We need to find a better way of helping producers,” said Manitoba Pork Council chair Karl Kynoch about the federal government’s recent imposition of duties against American corn, which hog producers rely upon.

“They need to find another way to help corn producers that won’t jeopardize our industry.”

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Canadian Pork Council executive director Martin Rice said he hopes the parties don’t stay away from this controversial subject, because the issue needs to be resolved.

“We certainly look for politicians to be aware of the destructive nature of this corn duty, but to also look at the root cause of it, which is an imbalance between the U.S. and Canada on farm subsidies that apply to the grains industry,” said Rice.

American corn and soybean producers are heavily subsidized by their government, giving Canadian grain producers the moral right to feel unfairly treated by the lack of subsidies on this side of the border, both hog officials said. But they added that an import duty would make things worse for Canadian farmers, who need a healthy livestock industry.

Kynoch said Canada’s political parties could offer a radical solution that might fix the problem.

“Why not adopt the U.S. farm bill? If the U.S. producers receive their subsidies through grain and then pass it on, why don’t we do the same thing in Canada?

“Then we would seem proactive rather than reactive,” said Kynoch.

The duty on U.S. corn could cost Canadian hog producers $20 per head, Kynoch said. It also makes it easier for American producers to get their own duty against Canadian hogs because the corn duty raises the break-even cost for Canadian producers.

“We might end up paying that 20 bucks twice,” said Kynoch.

Beyond the subsidy discrepancy, pork producers want better access to world markets.

“We’re anxious to see our governments commit themselves to the WTO negotiations that are going to get significant results for the exporters, not just (supply managed industries).”

The U.S. also does a lot of overseas export development work and Canada needs to invest more in that, he said.

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Ed White

Ed White

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