Pork Production & Exports Contribute Billions to Economy25 June 2012
CANADA - A study prepared by the George Morris Centre confirms the major contribution to the Canadian economy from Canadian hog and pork production and exports.
The study found that the economic development associated with hog production and exporting pork contributes $9.28 billion to the Canadian economy. In addition to describing the economic benefits of Canadian pork exports to the overall economy and to hog producers, the study indicates that Canadian pork exports in 2011 of $3.2 billion generated additional value added activity of $3.5 billion for the Canadian economy, and some $20-30/head back to Canadian hog producers.
“This report demonstrates the effect exporting pork and pork products has on the Canadian economy, our sector and the return for producers,” stated CPC’s Chair Jean-Guy Vincent. “Canada is a globally competitive and successful producer and exporter of pork and pork products and our industry understands the key factor to sustaining our success is the ability to access a wide variety of markets.”
“The CPC is very supportive of the federal government’s commitment to an aggressive trade agenda, seeking improved terms of trade for Canada through agreements with the European Union, Japan, South Korea and now, the Trans-Pacific Partnership,” added Mr Vincent. “The government has initiated a number of trade talks in key markets and we hope it will continue to show the same level of commitment to aggressively negotiate improved access for pork products to further strengthen pork industry and the Canadian economy.”
Using the Statistics Canada, System of National Accounts, Canadian Input Output Model for the pork sector, the report found the following economic impact of pork exports:
- 45,000 jobs at the processing, farming and other supplier levels.
- $1.98 billion in wages, salaries and benefits.
- $318 million in taxes both income and product related.
- Gross Domestic Product contribution of $3.5 billion.
Canada is a leader in the international pork industry, ranking third in terms of export volume and seventh in terms of production. Exports provided the impetus and ability for the Canadian hog and pork industry to continue to grow over the past decade. Furthermore, robust global demand for Canadian pork has resulted in increased value and volumes going to a broader base of customer countries. This has increased the market leverage and opportunities of the Canadian pork industry and has provided the opportunity to generate added value to the whole carcass.
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