It has become obvious in the last few weeks that few people and obviously no politicians realize that the canadian pork industry is set for total collapse. Current hog prices would be no different than if we were offered $1.00/bushel barley, $2.00/Bushel wheat and $4.00 /bushel Canola. On top of that this would be the offers after we had 3 years of total crop failure. While there are no easy solutions there needs to be at least an attempt made by the powers that be. Call a payout a Cool offset and then let the U.S. defend their position. Trade retalition is only a feeble excuse to do nothing. When the packing plants close there will be no turning back. As a grain producer I depend on markets for my feed grains and manure to help fertilize my fields.
There is a strong message here and that is that our grain industry could be in a similar situation down the road when unforseen circumstance means we are no longer a viable business. If you are a poor manager that is one thing ,but that's not the case in the pork industry. The producers still operating know their business. So while good operators go further in the hole, the retail sector are making an increasing sizable margin from the industry. Hope we aren't in the same position down the road. We would also probably find our crys for help would fall on deaf ears.
There is a strong message here and that is that our grain industry could be in a similar situation down the road when unforseen circumstance means we are no longer a viable business. If you are a poor manager that is one thing ,but that's not the case in the pork industry. The producers still operating know their business. So while good operators go further in the hole, the retail sector are making an increasing sizable margin from the industry. Hope we aren't in the same position down the road. We would also probably find our crys for help would fall on deaf ears.
Comment