Pork Insight Articles

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Author(s): B. Hunsberger
Publication Date: March 30, 2011
Reference: London Swine Conference, 2011
Country: Canada

Summary:

The decline and variability of economic profit for swine producers has led to various strategies including increasing provincial and national demand, subsidies, and trade barriers for imported products. Since the pork industry exports much of its pork, the Canadian exchange rate can have a large impact on profits. Canada’s corporate tax rate is lower than the States, and expected to decrease, so businesses and investors are seeing Canada as an opportunity. There has been a decline in pork consumption due to health, animal welfare, and food safety concerns. As well, many people choose not to eat pork, or meat in general, due to vegetarianism, religious or other dietary restrictions, or the availability of meat substitutes. The Canadian pork industry produces more than Canadians can consume, so exportation is necessary. The industry and government should market more aggressively to the global market to increase exportation demand. Increasing global competiveness through creating a cheaper packer sector, coordinating Canada to be as competitive as America, and continuing technology development and utilization can help the Canadian pork industry increase profits.

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