Hog farmers say situation critical, rally for government support
Major Hutterite operations shutting down, CBC learns
Last Updated: Tuesday, June 23, 2009 | 4:44 PM CT
CBC News
Manitoba pork producers have told government officials their industry is in crisis and that nearly one-third of pig farmers have gone out of business in the past two years.
"It's by far the worst that our industry has ever seen in Canada," Jurgen Preugchas, chair of the Canadian Pork Council, told CBC News. He said the industry generates almost $8 billion in economic activity in Canada each year.
'We're going through nearly 36 months of consecutive losses and it's very difficult for our industry.'—Jurgen Preugchas, chair of the Canadian Pork Council
"It's a lot of money. And if we let that go under in a time like this when jobs are hard to come by, another 42,000 unemployed wouldn't look very good," he said.
The combination of low hog prices, fluctuating currency exchange rates, high input costs, and an erroneous perception that swine flu is somehow related to pork has left the industry on its knees.
"Nothing has ever come close to what we are seeing today," he said. "I mean we're going through nearly 36 months of consecutive losses and it's very difficult for our industry."
As 500 pork farmers met with government officials in Morris, Preugchas noted that 30 per cent of producers have left the industry in the last two years alone.
CBC News has learned that several large pork operations across Manitoba are being forced to shut down.
Major hog operations on several Manitoba Hutterite Colonies are being closed.
At the Oakbluff Colony, treasurer Jack Maendel said closing the barn. which houses 1,500 hogs, was the only option.
"That means we stop bleeding," he said. "Years ago, if you shut the barn down, you stopped an income. Now, you shut the barn down, you stop the flow of money going out."
At the Starlite Hutterite Colony, head of barn operations James Hofer said recent struggles in the hog business have meant big changes in the community.
"You can't expect to live at the same level you did when essentially half your income is gone," he said.
Maendel said the public doesn't need to worry about the future viability of the Hutterite colonies, but he said smaller independent operations are being economically devastated.
"We can't overemphasize how much it hurts," said Maendel. "But at the same time, it's not fair to just look at the colonies; it's every hog farmer."
One of those independent producers is Manitoba farmer Doug Redekop. He said some of his neighbours are just weeks away from losing their farms, investments and homes.
Manitoba hog farmer Stan Siemens said he has already lost $2 million and is trying to get rid of his hogs so that he can avoid further debt.
"We're losing money," Siemens said. "The longer we keep [the hogs] the more we lose. We're taking big losses by selling them now but at least we'll stop losing then. Once [the barn] is empty we'll stop losing money."
Federal Liberals at the meeting said government must come to the aid of the industry. The Harper government has said it assessing the issue. The Canadian Pork Council is banking on a meeting with federal officials in July that it hopes will offer some short-term hope for producers.
Manitoba government officials were not at the meeting.
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