WINNIPEG -- The federal government will soon respond to a request from beleaguered Canadian hog producers for help in restructuring their operations or exiting the industry, Agriculture Minister Gerry Ritz said Wednesday.
"I can tell you we are having day-to-day discussions with the Canadian Pork Council. We're very, very close, and as soon as we have something we'll give you a shout," Ritz told reporters following a speech in Winnipeg to the Canadian Special Crops Association convention.
The hog industry has been beset with problems ranging from overproduction and unfavourable exchange rates to high feed costs and the fallout from the outbreak of H1N1 flu, also called the swine flu, although it is not spread through pork consumption.
The industry has asked government for up to $1 billion in loans to help producers adjust to the new economic realities.
Recently, the pork industry proposed a five-year plan guiding it through the next five years. It's expecting a response from Ritz soon.
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The plan calls for a downsized industry that includes fewer exports of live hogs to the United States, increased pork consumption in Canada and a reduction in annual Canadian pig production to 25.5 million hogs from 31 million in 2008.
Gary Stordy, a spokesman for the pork council, said farmers are beginning to adjust to their new economic environment but need loans to continue. Banks, which are under financial pressures themselves, are finding it difficult to lend them money.
"There's just a liquidity crisis," Stordy said.
He said the federal Conservatives appear willing to help. Right now it appears they want to make sure that any aid they do offer won't spark trade action from the United States.
While in Manitoba on Wednesday, Ritz and provincial Agriculture Minister Rosann Wowchuk also announced $50 million in federal-provincial funding to enhance food safety and environmental measures and to help farmers hone their business skills.
The governments will provide funding to establish food safety systems and bio-security measures on farms and boost food tracking systems between the farm gate and the consumer's plate.
