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Pork Export Subsidies and Global Disease Concerns Expected to Destabilize Markets

by 5m Editor
13 February 2004, at 12:00am

CANADA - Farm-Scape: Episode 1446. Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council and Sask Pork.

Manitoba Pork Council


Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

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Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork.

Farm-Scape, Episode 1446

Canada Pork International says it appears the European Union is attempting to move as much pork as possible before its enlargement this coming spring.

The EU is using two programs to backstop its pork industry on the export front. One is the private aid storage program, which is about to end.

It allows European producers to store product while they wait for Japan to lift domestic safeguards April 1st. The second, a temporary reinstatement of export restitutions, primarily targets Russia, and effectively lowers the export price of EU pork.

CPI Executive Director Jacques Pomerleau says the combination of subsidies will hurt Canada.

"There are two key dates here. One is when the Japanese safeguard will be lifted on April 1st and what is worrying is that, if the Europeans are shipping massive Quantities during the early period from April to June, then it means that the safeguards will be triggered again in July or August.

That is very worrying. Also what kind of volumes the Europeans will be able to ship to Russia before April 30th because those restitutions are supposed to end at that date.

What it means is, the two combined together, implies that the Europeans wish to export as much as they can before the enlargement of the European Union on May 1st. ".

Pomerleau says the two programs, especially the first which will allow the EU to be more competitive in Japan and the second which will create opportunity in Russia will have an impact.

He says, when you factor in uncertainty created by BSE and Avian Flu, it remains to be seen what might unfold over the next couple of weeks.

For Farmscape.Ca, I'm Bruce Cochrane.

5m Editor