Home » Transition Programs
The hog industry in Canada is now facing its latest challenge; the impacts of a world pandemic caused by the H1N1 virus. This has delayed the prospects for price recovery in hog markets for at least the next 10-12 months. The cumulative impacts in recent years of health challenges (circo-virus), macro economic factors (fluctuating currency exchange rates), US public policies (affecting feed costs), economic cycles (a demand reducing recession); as well as trade inhibiters (US COOL) have created the conditions for an industry that is now unprofi table, highly leveraged with debt and facing the prospects of imminent catastrophic implosion.
Industry leaders recognize that changes are required in both scale and strategy to ensure that a transition results in a business model that is sustainable for farmers, while providing Canada with the future meat supplies that will be required by processors and their domestic and international customers.
The Canadian Pork Council (CPC) has undertaken an intensive review of the current situation and developed a Strategic Transition Plan; one that respects the prudent role and capacity of government, while underscoring the primary responsibility of agricultural entrepreneurs to succeed or fail based on the merits of their efforts.
When the Transition Plan is implemented, a leaner, greener, and more innovative industry will emerge – one that is prepared to capitalize on domestic and international opportunities. In the meantime, many owners and their employees will have been transitioned out of the industry in a way that mitigates some of the damages to their communities, which would occur if there were only unbridled decisions based on fear, without any transition mechanisms.
It is understood that it is not in Canada’s interest to simply prop up the industry in an attempt to maintain the status quo. However, it would be damaging to Canada’s interests in terms of its economic prospects and rural viability if the productive capacity of the Canadian hog industry was to implode. It could recede to a level that threatens too many direct production and processing jobs, export sales and the exploitation of new technology development opportunities.