Manitoba Pork Council Confident In US-ITC Final Injury Outcome

by 5m Editor
19 October 2004, at 12:00am

CANADA - Farm-Scape: Episode 1624. Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council and Sask Pork.

Farm-Scape, Episode 1624

Manitoba Pork Council says the Canadian pork industry has a strong case in support of its contention that Canadian swine exports benefit the US industry.

The US Department of Commerce announced last week a 14.06 percent preliminary duty will be imposed on live Canadian swine entering the US.

Canadian exporters will be required to post bonds at the border.

Manitoba Pork Council Chair Karl Kynoch says, while the duties will have a substantial impact on Canadian producers, especially those in Manitoba, they'll also hurt the US industry.

"Manitoba is going to be heavily affected by this. We're responsible for about 53 percent of the live exports that go out of Canada.

Out of Canada there's about eight million shipped but out of Manitoba there's approximately three million weanlings and about one million slaughter hogs.

For every slaughter hog that goes south, if you take 170 dollar value times 14.06 percent, you come up with about a 24 dollar deposit per pig needed for the slaughter hogs and we expect the average on the weanlings is going to run about seven dollars a pig.

That's going to put a cash drain on our industry in Manitoba to the tune of about 25 million dollars over the next six months but you've got to remember this is a preliminary duty and we still have the final injury argument which we expect to win.

That should happen in about April. We're building a very strong defense nationally.

The thing we have to do there is show these live hogs going south have not hurt the industry in the US. We feel very strongly that they've been nothing but a benefit to the US for they've been receiving record prices down there for the last nine months."

Kynoch remains confident the US International Trade Commission will find Canadian hogs are not harming US producers when it issues its final injury determination in about Mid-April.

That, he points out, would end the action and trigger refunds of all deposits collected at the border.

For Farmscape.Ca, I'm Bruce Cochrane.

5m Editor