HomeMy WebLinkAboutHuron Expositor, 2009-08-19, Page 11,34
Federal government announces
aid for struggling pork farmers
Paul Cluff
The federal government has an-
nounced plans to help the struggling
pork industry, but time will tell if
producers can weather the "perfect
storm" crushing their livelihoods.
Bruce -Grey -Owen Sound MP Larry
Miller unveiled a three -pronged plan
Saturday that the government is
hoping will restore profitability to an
industry that pumps $5 billion into
the provincial economy:
The government will offer long-
term loans to viable hog . operations
to restructure businesses. ,04riett+trtf.
It has created a $75 -million fund to
help producers transition out of the
industry, and it will provide $17 mil-
lion for an international pork mar-
keting fund to find new customers
for Canadian pork. Miller, a farmer,
said the government has worked
closely with pork producers to find
solutions.
A strong Canadian dollar and U.S.
country of origin labelling have hurt
pork producers.
"Just when Canadian pork produc-
ers started to see a glimmer of light
at the end of the tunnel, they were
hit with H1N1," said Miller.
The government worked with the
Canadian Pork Council to put to-
gether the three -pronged plan, Mill-
er said.
The opportunity for producers to
transition out of the industry will
'`-rMuce production and bring supply
back into line with what the market
can support, he said.
Producers can tender bids for the
amount needed to take their barns
completely out of production for at
least three years.
Bids will be ac-
cepted based on
cost and an or-
derly exit from
the industry..
"We understand
this will mean
some difficult de-
cisions for some
producers. The
Canadian pork
industry needs to
reduce capacity
to become lean
and competitive."
The loan pro-
-, gram will allow
producers to re-
structure opera-
tions and it will
give them breath-
ing room until
the market and
economy recover,
Miller said.
The govern-
ment -backed
loans will enable producers to con-
solidate existing loans and free up
short term credit lines needed for op-
erating expenses. A viable business
plan will be needed to qualify, Miller
said.
"Long-term profitability of the
Canadian hog industry depends on
finding more customers that will pay
higher prices for our pork. We will
continue to travel around the world
tocreate new opportunities for our
producers and back that up with key
investments to make the most of our
international opportunities."
Curtiss Littlejohn, former chair
of Ontario Pork and provincial rep-
resentative to the national pork
council, said it is important the fed-
eral government listen to concerns of
those working in the pork industry.
"It has been three years since we
have been able to send our products
into the marketplace and be con-
fident that we would see a ` return
that would allow us to pay for our -
children's university tuition, pay the
mortgage or pay the grocery bill," he
said.
Littlejohn said Canadian produc-
ers have been losing money on every
hog shipped since the fall of 2006
and estimates of losses in 2007, 2008
and 2009, before the H1N1 outbreak
is factored in, would be $30 a hog.
"Manyproducers have left the in-
dustry, others are on the brink of fi-
nancial collapse. No one can can ex-
press the magnitude of the emotional
toll that this has taken on farm fami-
lies faced with losing everything they
have worked for."
H1N1 unjustly slammed consumer
perceptions around the pork indus-
try last April, he said, and further
See FEDERAL, Page 19
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