Supply management unlikely for hog industry

Tuesday, September 22, 2009

by GEOFF DALE

While a University of Guelph study, released Wednesday, sees supply management for Ontario’s hog industry as a costly and challenging venture, at least one proponent says the idea is far from dead in the water.

JoAnne Caughill, a Palmerston producer, who heads a grassroots committee looking into industry alternatives, says although the system may pose major problems at the federal level, implementing it first in Ontario is an option. “Certainly I see supply management still hovering in the background, perhaps now on the second burner.”

Commissioned by Ontario Pork and authored by Ridgetown Campus production economics and agribuiness professor Ken McEwan, the study (http://www.ontariopork.on.ca/aspx/public/News/NewsItem.aspx?item_id=143) suggests the industry would have to shrink 43-58 per cent to accommodate the system as well as overcome hurdles like fighting international trade issues, implementing tariffs and reducing production to match domestic consumption.

Steve Illick, a director representing Wellington County, notes much of the province’s domestic market has been lost to U.S. products, some of which may not meet label requirements and may contain antibiotics banned in Canada.

It’s time for diligence, he says. “It’s time to stop being a boy scout about these things.”

Caughill says, while supply and management has been getting support at recent regional producers meetings, two other options have been discussed: the Quebec model, which pairs producers with processors, and an industry recovery plan drawn up Grey Bruce producer Alan Margerison.

“Alan’s idea has many points of supply management but it’s not as tightly knit,” she says.

Margerison could not be immediately reached for comment.

Keith Robbins, Ontario Pork’s director, communications and consumer marketing, says the marketing organization expects to make an announcement soon on which direction it plans to take. BF