April 21, 2006

 

Canadian hog farmers welcome lifting of US corn duties

 

 

A Canadian ruling to lift a duty against US corn may have saved the region's hog producers up to US$100 million in annual feed costs, the Manitoba Pork Council said Wednesday (Apr 19).

 

Manitoba, a province near the geographical centre in Canada, produces about 5.5 million hogs a year. Another 3.3 million or so are sold as weanling pigs to the United States.

 

The temporary duty had been applied in response to a complaint by Canadian corn growers who claimed subsidised US corn was being dumped into the Canadian market and hurting their livelihoods.

 

The Canadian International Trade Tribunal ruled Tuesday that American corn imports have not and would not hurt the Canadian corn industry and lifted tariffs on US corn with immediate effect.

 

Nationally, the Canadian Pork Council estimates the duty could have added up to US$20 a head to the cost of raising a hog.

 

For many farmers, the duty meant the difference between loss and profit, Manitoba Pork Council president Karl Kynoch, said, adding that the elimination of the duties was definitely good news.

 

Corn growers across Canada would beg to differ.

 

Theresa Bergsma, secretary manager of the Manitoba Corn Growers Association, said corn growers were very shocked and disappointed by the news.

 

The tribunal contradicted an earlier decision by the Canadian Border Services Agency, which determined the injury to Canadian corn growers by subsidised US corn amounted toUS $1.47 a bushel, Bergsma said. When the temporary duty was slapped on US corn in December, Canadian farmers saw corn prices jump by US$0.50 a bushel.

 

Bergsma said a number of Manitoba growers have decided not to plant corn this year as a result of the ruling and intends to appeal the decision.