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C$25M Awarded to 145 Producers Under Programme

by 5m Editor
27 January 2010, at 8:50am

CANADA - The Canadian Pork Council has allocated just over 25 million Canadian dollars to 145 successful bidders in the third tender under the Canadian Hog Farm Transition Programme, writes Bruce Cochrane.

The 75 million dollar Canadian Hog Farm Transition Programme is part of a comprehensive federal hog industry restructuring plan which, based on a tendering process, compensates producers who agree to exit the industry for a minimum of three years.

Canadian Pork Council executive director Gary Stordy says out of 403 bids submitted 145 bids were accepted before the 25 million dollars allocated for the third round were exhausted.

Gary Stordy-Canadian Pork Council

The weighted average out of the 145 successful bids was approximately 925 dollars and 42 cents per AUE (animal unit equivalent) and the AUEs are what we essentially evaluate all the bids that come in so that they're comparable across production types.

The low bid that came in was approximately 584 dollars and the high bid was 999 dollars and 86 cents.

The types of operations varied from across Canada but, at the end of the day, this tender will be removing approximately 38 thousand sows, 76 thousand weaners to 30 kilogram animals and approximately 150 thousand finishing animals for the next three years.

The fourth and potentially final tender is slated for 10 March and will allocate a total of 14 million dollars.

Mr Stordy says there is still expected to be considerable interest in the final tender.

He says producers who have already registered and have not had a bid accepted will receive tender forms in the mail and he encourages those producers interested in the program who have not yet registered to do so by 17 February.

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