July 29, 2009

 

Canada pork group hits back at US bailout protest

 
 

The Canadian Pork Council (CPC) is unhappy with the statement issued last week by the National Pork Producers Council (NPPC) regarding a US$800 million emergency subsidy programme for Canadian pork producers.

 

The NPPC said the programme will negatively affect the US swine sector and prices. In response, CPC chairman Jurgen Preugschas said that Canadian pig prices have been in large part artificially depressed by things such as US Country of Origin Labelling (COOL) rules.

 

Many former US customers for Canadian pigs and pork have stopped their purchases due to the burden COOL has created for US food handlers, Preugschas said.

 

Since COOL became mandatory, Canadian live hog exports to the US have declined 36 percent on-year, he said.

 

Canada's hog producers have had a difficult three years and dramatic adjustments have been made to the country's productive capacity, which the NPPC is aware of, Preugschas said.

 

The Canadian sow herd has declined six percent this year compared to last year, and nearly 12 percent since 2007. The US breeding herd has decreased by less than four percent over these past two years, or only a third of the cut experienced in Canada.

 

''The fact that US production is not declining faster, despite suffering losses averaging US$21 per pig since October 2007 according to the NPPC statement, is, frankly, quite surprising and disappointing," added Preugschas.

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