AgriPost February 26 2021

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The AgriPost

February 26, 2021

Compensation Flows to More than Half of Canadian Dairy Farmers

COVID-19 Temporarily Shuts Down Alberta Pork Processor

On February 15, Olymel management temporarily shut down its hog slaughtering, cutting and deboning plant in Red Deer, Alberta.

By Harry Siemens On February 15, Olymel management temporarily shut down its hog slaughtering, cutting and deboning plant in Red Deer, Alberta. Despite employee testing protocols and sanitary measures in place to deal with a resurgence of positive COVID-19 cases, Olymel management could not continue normal operations safely and efficiently. The company informed all hog suppliers to the Red Deer plant of the situation, suspending deliveries until further notice. On February 19, Olymel said their plant’s temporary

Photo courtesy of Harry Siemens

shutdown is affecting many Albertans hog producers, including Olymel’s companyowned farms that ship market hogs to Red Deer weekly. The company said that they understand the strain on operations estimating the backlog of 80-90,000 animals. Olymel’s hog production division for the Red Deer plant will move a substantial amount of company-owned hogs to the US to create enough plant capacity for independent hog producers affected by the plant closure. With the added capacity Olymel anticipates that the backlog of market-ready

hogs will clear within 4-5 weeks after the plant can resume activities. Although the company cannot determine when processing will resume it will be at such a time that meets the best conditions for employees’ health and safety. The temporarily shut down weighed heavily on the minds of 200 plus hog producers participating in daily discussions on a WhatsApp group. “We are waiting on Olymel... if not, we will have to ship to the US, as well,” said one producer. “If you are looking to move 90-100 pounders next week, got someone looking

for some in South Dakota. D.M. me if you’re serious.” Another producer said that since Olymel is moving their animals out of the country this should help producers keep their pigs moving to the plants. Rick Bergman of Steinbach, MB, Canadian Pork Council president, said first there was a slowdown in production and shutting down now reduces slaughter capacity creating a further backup on supply. Olymel also has a plant in Quebec under similar pressure to keep up with the number of hogs. Continued on Page 2...

The Federal Government has announced that 5,054 Canadian dairy farmers have already received their payments, totalling $267.1 million, under the second year of the Dairy Direct Payments Program. This represents roughly 51 % of the more than 10,000 dairy farmers across the country. With these direct payments the Government of Canada is delivering on its commitment to provide full and fair compensation to supply-managed sectors for market access concessions made under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Dairy farmers will receive $1.75 billion in direct payments over the course of four years, with $345 million made available in year one (2019-20) and $468 million currently available under year two of the program. Another $469 million will be available in 2021-22, and $468 million in 2022-23. The owner of a farm with 80 dairy cows will be awarded compensation in the form of a direct payment of approximately $38,000 for each of these remaining years. These amounts also build on the $250 million CETA on-farm investment program, and provide certainty on the schedule and form of remaining payments in the $2 billion total compensation package for dairy farmers. The Government of Canada remains committed to engaging the sector on full and fair compensation for the Canada-United States-Mexico Agreement (CUSMA), and to providing compensation to processors of supply-managed products. There are 10,095 dairy farms in Canada, supporting close to 19,000 direct jobs on farms. The demand for Canadian dairy remains strong, and has led to a 9% increase in raw milk production between 2016 and 2019. Details of federal compensation programs for chicken, egg, turkey and broiler hatching egg producers, totaling $691 million over ten years, are being discussed in consultation with industry representatives. These consultations are progressing well, further program details expected to be available this spring. There are over 4,750 chicken, egg, broiler hatching egg, and turkey farmers across Canada. These farmers generated over $4.9 billion in farm cash receipts in 2019, totalling 7.4 percent of all farm cash receipts in Canada. According to industry, Canada’s poultry and egg sector supports more than 140,000 direct and indirect jobs.


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AgriPost February 26 2021 by AgriPost - Issuu