Canadian farmers have already suffered damage from Russia’s ban on ractopamine in U.S. pigs, says the head of the eastern Prairies’ biggest hog marketer.
The imposition of the ban directly on Canadian slaughter plants will likely exacerbate the problem.
“When you’re already losing money, there is no margin (to lose),” said Perry Mohr, general manager of Hams Marketing.
Russia announced at the start of April that it would ban pork and beef imports from plants that accept ractopamine-treated animals, starting April 8.
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The same date applied to the imposition of a ban on Mexican pork shipments from animals that have been fed ractopamine.
It extends a December ban that Russia placed on meat from animals fed ractopamine but allowed meat from non-ractopamine pigs and cattle slaughtered in the same facility to be imported.
Mohr said the recent Russian and Chinese bans on U.S. pork plants that slaughter any ractopamine-fed pigs has already reduced North American base prices.
“U.S. prices dropped about $10 per hundredweight over a three week period,” said Mohr. “All Canadian prices are based off U.S. prices.”
Ractopamine is a feed-supplied substance that stimulates lean muscle mass and discourages fat gain. It makes hog production more efficient because pork prices are based on muscle content.
Producers generally gain $2 to $5 per head using ractopamine.
Russia’s ban on Canadian plants is not total. Plants that process zero ractopamine-fed pigs can still export to Russia, China and other markets that have imposed controls.
Both the HyLife plant in Neepawa, Man., and the Maple Leaf plant in Lethbridge accept only ractopamine-free pigs so that they can sell to these markets. As a result, their business should be unaffected. However, Canada’s major processing plants will probably be cut out of the Russian market.
Most Mexican and U.S. plants accept ractopamine-fed pigs.
Canadian packers will be faced with tough choices over this ban. Producers are loath to lose the advantages of ractopamine, especially in loss-making times.
Also, companies such as Olymel and Maple Leaf produce a lot of their own pigs and likely don’t want to pay more than necessary to feed them to slaughter weight.
The Canadian and U.S. industries are skeptical of the purpose of the bans. Countries such as Russia and China claim to have health concerns as the basis, but North American authorities believe restricting imports to boost domestic prices and help their own farmers is likely the true cause.
Russia is not an important market for Canadian beef, buying only $15 million worth in 2011. However, it is a big market for Canadian pork, buying more than $500 million per year.
