Farm-Scape, Episode 1608

The Canadian Pork Council is advising swine producers to consider potential US antidumping duties before making major business decisions that involve access to the US market.

The US Department of Commerce is expected to announce, October 15th, its preliminary determination of whether Canadian hogs are being sold into the US at less than fair market value.

The ruling could lead to antidumping duties on all Canadian live hogs, except breeding stock, exported to the US beginning by about October 20th. Canadian Pork Council President Clare Schlegel says, despite an August ruling that eliminated the threat of countervail duties, the specter of antidumping duties still exists.

"The antidumping investigation is based on four individual exporters within Canada. Those four will determine what the rate will be in the 'all others' category. The period under investigation is 2003.

We are aware that 2003 was a difficult year and there is a possibility that we will face some problems with regard to dumping so any long term strategic decisions that are based on historical prices, one should take into consideration this blip in the market place that could take place.

It's important that producers are aware of the process. There's a final injury question that will happen next March or February. If Canada wins the final injury question and we believe we will, or we should, then the duty would go away. However, if Canada would lose, then the duty would become permanent and would be in place at least until April of 2006."

Schlegel says even a temporary duty could affect hog prices in Canada so those considering major business decisions which depend on access to the US market should be aware of the possible implications of the preliminary antidumping decision.

For Farmscape.Ca, I'm Bruce Cochrane.