Canadian Pork Farms Facing Cash Crisis
April 23, 2020
To: Federal, Territorial and Provincial Ministers of Agriculture
Dear Ministers,
On behalf of pork producers, the tens of thousands of hard-working Canadians employed on Canadian hog farms and the tens of millions of Canadians that rely on a safe and stable food supply, we are urging you to take immediate action to prevent a major crisis that will put Canada’s farms, and Canada’s food security, at risk.
Canada’s pork producers are facing an unprecedented crisis as a result of COVID-19. The disruption to supply chains and markets has created a situation where farmers can no longer be sure that there will be a buyer for their pigs and where there is, the hogs are now worth significantly less than they were just weeks ago. Producers are now paying more to feed and take care of the animals than the price they receive for them.
Conservative estimates indicate that losses could average up to $50/hog. At a minimum, this equates to a loss of $675 million for pork producers at a time when 2020 was expected to finally be a positive year after years of tight margins. COVID-19 has wiped away that hope and left despair in its place.
As a result of the losses, farms have been quickly pushed into a cash crisis. This is creating a significant risky future where farmers don’t know if their hogs will have any value at all. Imagine having to invest all your time, your money, and yourself to raise hogs and not knowing if you will be able to sell them or facing the euthanasia of your animals.
While we have heard positive messages from governments across the country about their commitment to protecting food security in Canada, the lack of decisive action has left farmers concerned that they are left to shoulder all the burden and risk. The fact that market hog prices are plummeting at a time when prices should remain stable due to demand only underscores the precarious position farmers have been put in.
Pork producers need governments to act, and we need that action now. Pork producers need $20 per hog from government as a crisis payment to protect farmers and protect the food supply. Governments don’t need to reinvent the wheel; they have the tools to fix this problem.
It is imperative that Ministers meet with their respective provincial organizations as soon as possible so we can highlight the difficult position farmers are in across the country and why governments need to take decisive action. Staff from our respective organizations will follow up to set up the meeting at your earliest convenience.
The Canadian pork industry contributes to over 100,000 jobs and annually injects $23.8 billion to the economy. Hog farmers are passionate about what we do. We pride ourselves in our ability to consistently put reasonably priced, safe, high-quality protein on plates across the country. But we cannot put our livelihoods at risk by trying to continue to produce pork without meaningful support from the government. We are committed to continuing to produce food when it is needed most, but governments can’t ask us to bear this unprecedented risk alone.
Sincerely,
Rick Bergmann
CPC Chair and Manitoba Pork Producer
Jack DeWit
Chair of BC Pork
Brent Moen
Chair of Alberta Pork and Pork Producer
Casey Smit
Chair of the Saskatchewan Pork Development Board and Pork Producer
George Matheson
Chair of the Manitoba Pork and Pork Producer
Eric Schwindt
Chair of Ontario Pork and Pork Producer
David Duval
Chair of Les Éleveurs de porcs du Québec and Pork Producer
Stephen Moffett
Chair of Porc NB Pork and New Brunswick Pork Producer
Margie Lamb
Chair of Nova Scotia Pork and Pork Producer
Paul Larsen
Chair of the PEI Hog Marketing Board and Pork Producer