By Andrew Heck
Editor’s note: Andrew Heck is past Editor, Canadian Hog Journal. He can be contacted at ‘andrewtheck@gmail.com.’
The past half-decade has exposed just how vulnerable global supplies chains are, and the Canadian pork industry has no shortage of examples to prove it.
In the spirit of fostering relationships, streamlining the movement of pigs and pork to market, and ensuring equity for all stakeholders, Alberta Pork hosted the first-ever Western Canadian Pork Industry Forum in Calgary on Nov. 20, bringing together more than 30 representatives from hog production, pork processing, transportation, veterinary medicine and government to address systemic challenges and identify strategic opportunities for the sector.
This collaborative dialogue underscored the need for actionable solutions to enhance competitiveness, sustainability and growth. Further representation from retail and foodservice rounded out the perspectives. The session was facilitated by neutral-party experts, with participation from market analysts keen on providing insight and context to guide an effective conversation.
Upon the completion of the forum, four key priorities emerged to guide industry advocacy and government efforts: risk management and investment, domestic pork demand, multi-stakeholder collaboration for collective impact, and trade. But to truly realize the benefit of these efforts, stakeholders must continue to seek common ground and mutual understanding.
Competitiveness, investment are key to managing risk
Enhancing financial stability for the industry requires robust risk management tools that mitigate the financial volatility faced by producers. Such tools are urgently needed especially in the wake of disease, drought and retaliatorily trade issues. Stable and predictable margins encourage confidence across the value chain and allow for the continued growth of the industry.
The current suite of business risk management tools available to hog producers has proven insufficient to top up their margins when times are tough. While some agricultural commodities have fared well with existing programming, the unique nature of hog production and its just-in-time delivery system, plus the prevalence of mixed operations, has rendered AgriStability, in particular, ineffective. In recent years, AgriRecovery has been invoked at the federal level to support crop and grazing livestock producers in western Canada; however, hog producers have been routinely excluded.
In addition, strategic investment in modern infrastructure and innovative technology within barns and production facilities will improve operational efficiency, product quality and environmental sustainability. Support in these areas is critical to facilitate long-term growth and to ensure producers have the tools to thrive in increasingly competitive markets with growing societal sustainability pressures.
Given the high capital costs associated with modernizing infrastructure and adopting technology, more widely available lending options and improved profitability are needed to support growth. Many barns across western Canada are currently in need of significant retrofitting. While the age of facilities is an obvious concern, a ban on gestation crates is set to take effect in 2029, with changes to the National Farm Animal Care Council’s (NFACC) Code of Practice for the Care and Handling of Pigs.
The forum highlighted the desire across the value chain for more cooperation to drive business success. For business risk management to be fulfilled, industry competitiveness should be enhanced to reduce the reliance on government funding. Anti-competitive realities – such as the federal carbon tax – are a known impediment to businesses, which has a compounded impact at each step of the value chain.
Domestic demand can provide a safety net
Starting in the 1970s, the Canadian pork industry was compelled to pick a lane. For most of the 20th century and earlier, the industry consisted of local production, processing, retail and home consumption, but that shifted dramatically toward international exports as opportunities emerged overseas and as Canadian consumers changed their habits.
As the pendulum swung in a radical new direction, the industry saw rapid expansion abroad and began to fizzle out at home, at least among end-users. With the flood of cheaper U.S. pork on the Canadian domestic market and the meteoric rise of chicken, the Canadian pork industry turned its attention to creating a higher-quality product that would be appreciated in markets like Japan, while finding new outlets for affordable cuts and offal in markets like China. And while this shift was undoubtedly responsible for success in the decades to come, more recent developments have called the approach into question. Stakeholders more than ever are now realizing why the domestic market matters so much.
One area in which the Canadian pork industry has a pressing need to brush up is the situation of a potential foreign animal disease outbreak, like African Swine Fever (ASF) or Foot-and-Mouth Disease (FMD). In the event trade comes to a halt due to a federally reportable disease like ASF or FMD, pork supplies already in cold storage will become backlogged, awaiting export, which will cause serious supply chain complications. The only immediate reprieve could be renewed domestic interest in buying up the stalled pork until market activities resume as normal.
While a supply crisis may be inevitable under a federally reportable disease, anything helps, when it comes to growing consumption levels. The forum identified the need to re-shape pork’s image in the eyes of consumers, which could help drive domestic demand and establish a greater sense of balance to offset the reliance on foreign markets.
Stakeholder collaboration creates collective impact
The success of the Canadian pork industry hinges on strong collaboration across the value chain. Working together to address shared challenges will unlock opportunities for growth, efficiency and innovation.
Starting in 2024, virtually all of Canada’s commercial hog producers – representing 99 per cent of pork processed in facilities under the jurisdiction of the Canadian Food Inspection Agency (CFIA) – have been certified under the Canadian Pork Excellence (CPE) program. This important milestone required nearly a decade of efforts by producers and the industry to come to fruition. With implementation challenges overcome, the Canadian pork industry is stronger and more united than ever, which is a testament to the hard work of so many stakeholders.
From farm to table, the Canadian pork story today continues to emphasize the high quality and safety of Canadian pork. While CPE represents the on-farm quality assurances, the Verified Canadian Pork brand communicates these virtues to end-users – whether foreign buyers or everyday Canadian consumers at retail. As CPE is now fully implemented, value chain collaboration appears more effective than ever, which is a trend the industry can leverage for years to come.
The forum recognized the need to keep the momentum going. Building on proven models and past initiatives provides the impetus for long-term improvements; however, this will require increased collaboration between industry and government to create policy frameworks and programs that reinforce Canada’s position as a global leader in pork production.
Trade barriers continue to pose a threat
Like many non-supply-managed Canadian agricultural commodities, pork is ultimately at the whims of political decisions that extend far beyond the industry’s control. Gaining the trust and understanding of policy-makers and diplomats at home is essential for maintaining existing and developing new markets for Canadian pork. Though the forum recognized the need for increased domestic demand, foreign demand is far from decreasing, and the Canadian pork industry remains poised to play a prominent role as a top-five global supplier into the future.
Political volatility in both the U.S. and China has caused headaches for the Canadian pork industry in recent years. With the U.S., the threat of tariffs against Canadian goods has raised anxiety, on top of incoming voluntary country-of-origin labelling (vCOOL) and an impending review of the Canada-U.S.-Mexico (CUSMA) agreement. With China, the constant threat of halting pork imports hangs over the heads of export partners like Canada, and not without precedent. In 2019, Chinese officials accused Canadian pork exports of containing ractopamine, despite its ban in Canadian commercial production several years prior. Effectively, the dispute was without merit and in response to over-arching political tensions. Such situations can and likely will continue to emerge in the future.
Market diversification has long been a focus for the industry, and that focus will only grow stronger. Population decline in traditional foreign markets for Canadian pork is cause for concern. On the flip side, many populations in Latin America and Africa are quickly growing, along with the standard of living and demand for meat. These potential markets could be the next frontier, which presents a monumental challenge for global pork producers, including Canada, to expand their reach to areas once considered non-starters.
Ultimately, navigating the complex waters of international relations requires commitment across the value chain. The forum acknowledged that foreign buyers’ expectations continue to have a stronghold on industry development, and as the world continues to change, those expectations will likely evolve further.
Shared priorities pave a path forward
The Western Canadian Pork Industry Forum served as a vital starting point for aligning priorities and building a shared vision for a more sustainable and competitive industry. Achieving this vision will require targeted government support, industry-led innovation and a collective commitment to strengthening the pork value chain.
By addressing these priorities – better risk management, increased domestic demand, more effective collaboration and stronger trade relations – industry and government decision-makers can work together to create a thriving pork sector that benefits producers, consumers and the broader economy.
