The Rural Voice, 2003-03, Page 33mandatory on September 30, 2004.
There will still be the same
amount of pork on this continent and
Canada and the U.S. will still be
battling for export markets, McEwan
pointed out. In 2001 Canada exported
3.2 million feeder pigs to U.S. buyers
and 2 million live market hogs.
Currently Ontario sends about
32,000 feeder pigs and 8,500
market hogs into the U.S.
weekly. We don't have the finishing
capacity or the processing capacity to
handle these hogs so if Seems likely
there will be a dampening effect on
prices in the province; McEwan said.
(There is some excess processing
capacity in Quebec: the Quebec
system of self-sufficiency in
processing looks awfully good right
now, McEwan said.)
On top of that, even if hogs were
to continue to flow into the U.S. for
finishing and processing, there's the
high cost of the new auditing system
that will be required for COOL. The
United States Department of
Agriculture has estimated it will cost
$2 billion to create an audit trail.
"The higher costs will likely be
passed down to the producer level,"
McEwan said.
The George Morris Centre
conducted a study for Manitoba's
pork producers that estimated an
additional cost of $8-$13 per head to
meet the regulations. The retailers
costs will be the equivalent of $2 per
head; the packer's $5-$10 per head
and the producer's $1/head. Of
course the producer is also likely to
absorb the costs of all those higher on
the chain through lower prices paid
for live market hogs.
COOL is definitely a trade barrier
but it can't be challenged under the
World Trade Organization until it
becomes compulsory, McEwap
pointed out.
Could the regulations be an
opportunity for exports of Canadian -
processed meats that wouldn't have
the costs of supporting the labelling
audit trail? There are already
strategies being perfected in the U.S.
to try to combat that, McEwan said.
Besides, it's hard to differentiate
between pork chops from the U.S. or
Canada, he noted and given the
choice the U.S. consumer is likely to
pick a U.S. product.
"I wish it was a better message,"
McEwan said.in finishing his talk.0
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