duBreton expresses concerns about conclusions of report on Pork Industry in Quebec

A report commissioned by the Quebec Ministry of Agriculture, Fisheries and Food, and carried out by Raymond Chabot Grant Thornton was recently released

Following the report’s conclusions on the pork industry, duBreton expressed some concerns.

Vincent Breton, President, duBreton

“In light of this report, it is clear to duBreton that an exit from collective marketing is necessary to better meet the specific needs of specialty pork producers. What’s more, reform of ASRA is crucial to ensure a fair distribution of financial assistance and to promote the competitiveness of all producers,” concluded Vincent Breton, President of duBreton.

 

 “ASRA has compensated hog farmers for 11 of the last 14 years and this underscores the need for reform to ensure the long-term financial sustainability of the pork industry in Quebec.”

 

The report highlights weaknesses of Quebec’s pork industry and shows that the unit cost of pork production is 19 percent higher in Quebec than in Ontario, a press release stated. Data from CECPA’s recent cost-of-production study shows that the average cost of a hog is $306 in Quebec, compared with $257 in Ontario. With this, duBreton asserts that the pork sector in the province of Quebec is weaker than that of Ontario, and that outdated Quebec regulations have a lot to do with it.

Following a Quebec ministry report’s conclusions on the pork industry, duBreton expressed some concerns.

Industry insiders pointed out that, due to increased vertical integration, the farm income stabilization insurance program (ASRA) takes the form of an industry-wide subsidy. Companies integrated at all levels of the chain benefit from financial assistance from ASRA. ASRA has compensated hog farmers for 11 of the last 14 years, the release continued. This underscores the need for reform to ensure the long-term financial sustainability of the pork industry in Quebec.

The report also points out that the marketing agreement is not adapted to specialty pork producers. Although marketing costs are paid by all stakeholders, the budget is used to promote pork in general, without specifically targeting specialty pork. This limits the development and growth of companies like duBreton.