FCC: China’s Hog Industry Direction Will Impact Canadian Farmer

July 18th, 2013
 

  Farm Credit Canada Economist J-P Gervais

 

A Farm Credit Canada economist says no matter which direction China’s hog industry goes, it’s going to have an impact on Canadian farmers.
J. P. Gervais figures Canada’s pork industry could see new opportunities if China relaxes it’s self-sufficiency policy and hog production grows elsewhere.
For instance, if the Smithfield deal ends up with more of that company’s pork going to China, less pork would be available for the North American market.
That, he suggests, will support hog prices – good news for our hog sector.
On the other hand, Gervais says China could also decide to continue it’s commitment to self-reliance in meat production.
He says that would mean more Chinese pork production and the accompanying need for more feed grains like soybeans and corn.
The FCC economist points out China is expected to buy more than 65 per cent of all the soybeans traded in the world this year.
He points out our canola exports to China totalled almost 2 billion dollars in 2012, despite some trade frictions between our two countries.
Gervais says that option would be good news for Canadian grain producers.