so much for value added

[Fransisco]

Let me put the $75 million into context. In a normal year the Canadian pork business generates around $5 billion in annual farm gate income. It's a lot more if you add in the processing side of things.

As far as bailouts go (and I am not in favour of bailouts) this is a drop in the bucket.

I agree, running to the taxpayer for these kinds of things no matter what the industry is, is not a good idea.

The problem is not a sudden increase in supposedly "stinky" pork. It is oversupply, demand simply did not keep up with ever increasing supply.

Last year it looked like new demand from places like China was going to save the day. But that sudden surge in demand was shortlived as the Chinese have been able to raise their own production levels this year.

The marketplace is in the process of flushing the excess supply out of the system. Prices won't improve until this happens. And unfortunately it's all taking a lot longer than anyone expected.

[parsley]

Important to carefully examine demand's slide.

That's my point and it's a loaded point, I realize.

All countries should be running to Canada to buy pork, gleeful, (think how sought after Canadian bacon used to be) just as I drive to my butcher two hours away.

When consumers tried to tell GM that their cars were shoddily built, and Toyota were building sturdy cars, GM was not prepared to listen. Period.


Yup.

[charliep]

Perhaps the original point is that all industries have a supply chain and something that impact one part of the supply chain eventually hurts everyone. On the car analogy, there have been a lot of component manufacturers (seats, mufflers, whatever) that have been severely impacted by the down turn in the auto manufacturing industry. The drive to efficiencies by the automakers will have significant impact on suppliers downstream. Suspect some of the same thing will happen on the livestock feed side.

The point in the first post is the reduction in meat demand (reasons have been given) will eventually impact you as a grain farmer. The lag time will be a year with this period started last spring.

[Fransisco]

The low price for pork is not just a Canadian phenomenon. It is global. And in many parts of the world is actually much worse than it is here.

Though at a certain point it probably doesn't matter if you've had a couple of less kicks to the nads than the next guy.

[craig]

good comments and back on topic.

[parsley]

GM would have said the same thing. LOL. Let's get tax money, grants, subsidies, and keep producing exactly what we have in the past, and no worry, go full steam ahead, Toyota sucks anyhow. LOL Now we're on track again. LOL I'm being a devil's advocate today, craig. LOL Pars.

[Fransisco]

Very well then, if Canadian pork is GM then which country is Toyota? Which country has not seen a dramatic fall in the price of hogs?