The Canadian pork industry comprises several distinct segments, including hog farmers, pork packers and processors, and at the distribution level, domestic food retailers and pork exporters. Although there exists a high degree of interdependence between these industry segments for the long-term survival of the total supply chain, and a virtual necessity for each to achieve fair returns for their efforts in order for the total system to carry on, there is also an inherent tendency for each segment to want to obtain for itself the 'biggest piece of the pie' it can reasonably acquire. Pork producers have been very active within the coalition of farm groups, led by the Canadian Federation of Agriculture, in convincing the federal government to decide in favour of a whole-farm disaster assistance program effective with 1998 income tax returns.
Negotiations continue with the provinces on cost-sharing and other administrative issues.
Canadian hog production since the early 1980's has grown at a faster pace than has the capability of meat processors in this country to succeed at procuring it. As a result, and despite a U.S. countervailing duty order imposed on Canadian live hogs in 1985, Canada has become increasingly a net exporter of slaughter swine. Several events have happened, however, that point to a reversal of the trend of a growing slaughter pig surplus in Canada. One of the earlier of these was the 'consultation table' established several years ago in Quebec that has assisted in achieving not only a recognition of mutual interests within the hog supply chain in that province, but actual commitments between the sellers and the buyers of hogs which have resulted in that province actually becoming a net importer of pigs for slaughter. Other, more recent, developments include the construction of one large plant in western Canada which opens toward the end of this summer.