No other pork-producing nation in\u00a0the world has the kind of dependence on exports that Canada\u00a0does.\u00a0Over two\u00a0thirds of Canadian\u00a0pork production\u00a0is exported,\u00a0excluding live\u00a0pigs, and almost
\nhalf of all production is going to non-U.S.\u00a0markets.\u00a0Canada is currently the third largest\u00a0exporter of chilled pork in the world. As well, pork consumption in\u00a0Canada has declined during this period.\u00a0This is an enormous exposure to risk on\u00a0the export side of things.<\/p>\n
\u201cThe reason trade matters for the pork\u00a0industry becomes clear when you take a\u00a0look at all of the cuts and products that\u00a0come from one carcass,\u201d says Rice. There are products such as offal or\u00a0variety meats that may go for pet food in\u00a0Canada. But in China or Japan, these\u00a0are highly sought after and are priced\u00a0accordingly.\u00a0\u201cThere is an enormous contribution to\u00a0the cutout value of the carcass, to be able\u00a0to sell these variety meats to markets\u00a0that value them,\u201d says Rice. This is why\u00a0trade agreements are so important for the\u00a0Canadian pork industry.<\/p>\n
There are a number of trade agreements Canada has currently\u00a0signed or is pursuing. The most important of these are the WTO,\u00a0the Canada-EU agreement and the Trans Pacific Partnership (TPP).<\/p>\n
Regarding the TPP Rice says \u201cwe are quite confident that within five years of implementation, we will see additional exports to Japan in excess of $300 million per year.\u201d However the Canadian market must be cautious about relying on these trades as estimates from the Japanese ministry show the population declining from the approximately 127 million people today, to around 80 million people in the next 40 years. This will impact demand for export products significantly.<\/p>\n
The Canadian Pork Council also want producers\u2019 input on what value they see in some of these practices and programs. Is it worth it to producers to focus on the export markets?<\/p>\n