AgriPost March 30 2018

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The AgriPost

March 30, 2018

Increasing Productivity to Remain Competitive

Canadian Pork Highly Valued by Japanese Consumer

Claude Vielfaure from Hylife, Canadian Agriculture Minister Lawrence MacAulay and Canadian Pork Council Chair Rick Bergmann check out a Hylife restaurant in Tokyo.

By Harry Siemens In March, in observance of the signing of the Comprehensive Progressive Trans-Pacific Partnership and to celebrate Canadian pork’s ongoing relations with Japan, a delegation representing the sector traveled to Japan to meet with customers.

Scott Peters, a Steinbach area pork producer and Executive Director of Manitoba Pork, said it was only after arriving in Tokyo that he became aware of the significance of Canadian pork to the Japanese market. “From the very first meeting in Japan until the day we left, Japanese represen-

tatives told us how important and how great the quality of Canadian pork is to the people of Japan,” said Peters. “Specifically the marbling, the texture, and the fact that there’s no odor to it is specific to that market. When they slice the pork in Japan, they want it extremely thin, and that’s called shabu shabu. Because our product is firm and the fat is firm, it slices extremely well, and so Continued on Page 2...

Canadian farmers need to continue to focus on efficiencies and increased production of commodities in order to remain competitive within a rising tide of production around the world, according to J.P. Gervais, Chief Agricultural Economist for Farm Credit Canada (FCC). “Our long-held reputation as a safe and reliable producer of high-quality food opens the door to existing and new export markets, but competitive pressures are mounting,” Gervais said. “The game is quickly changing and it’s becoming more and more evident that it’s mostly about volume and value added.” Recent years of record-high production have boosted global stocks of many agriculture commodities. But even as the planted acreage of major crops in the US is expected to be lower than its high in 2012-14, when it averaged almost 257 million acres, improvements in yields allow for continued growth in overall production. That is why it is important for Canadian agriculture to invest in innovation for continued growth in productivity. Gervais said increasing productivity does not necessarily mean farmers need to expand their operations. “Canadian producers need to find ways of reducing costs while increasing productivity from their existing operations, whether that means increasing the yield per acre or getting more butterfat from a litre of milk,” he said. “Investments in innovation and technology will go a long way in ensuring Canadian agriculture remains productive, competitive and sustainable.” Gervais said changing food preferences are also driving investment decisions. For example, milk production in Canada is trending upward, requiring further investment in processing capacity. Canadian consumers also seek healthy and convenient food products, which are expected to trigger more investments in pre-packaged and easy-to-prepare foods. The food manufacturing sector’s Gross Domestic Product (GDP) is 5.4 per cent higher than at the same time in 2016. “The climate for investment in Canadian food processing is positive, given a Canadian dollar under US$0.80, continued low interest rates and growing demand in the US,” said Gervais, who projects exports of food manufactured products to the US could increase again in 2018, despite the uncertainty surrounding current negotiations of the North American Free Trade Agreement (NAFTA). He believes this type of investment in Canada’s agriculture and agri-food sector will help keep the industry competitive and, in many cases, a world leader in agriculture innovation and technology. “Increasing productivity and adding value to agricultural products is the avenue that will grow Canadian farm revenues,” Gervais said.


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