The AgriPost
November 29, 2019
Grain Farmers Need Speedy Resolution to CN Labour Disruption
Pork and Beef Shipments Will Resume to China
Hog Boss James Hofer of the Starlite Colony near Starbuck is grateful to the Canadian Government’s team of negotiators who struck a deal recently for the resumption of pork shipments to China. Photo by Harry Siemens
By Harry Siemens Great news for beef and pork producers and the entire meat industry as Prime Minister Justin Trudeau tweeted November 5. “Good news for Canadian farmers today: Canadian pork and beef exports to China will resume. Thanks to Ambassador Barton and the Canadian meat industry for their work on re-opening this important market for our meat producers and their families.” Then the Minister of Agriculture Marie-Claude Bibeau
said after months of hard work and constructive dialogue, China would be re-opening its market for Canadian pork and beef. “Thank you to many who played a role! We will continue to work hard for our producers and processors.” Manitoba Pork Council said producers welcomed the announcement that China will once again accept Canadian pork. Demand for high-quality pork by Chinese consumers is high, and Manitoba producers are eager to meet their needs. “We especially commend Ambassador Dominic Barton, International Trade Diversification Minister Jim Carr, and Agriculture and Agri-Food Minister Marie-Claude Bibeau for their tireless efforts to reach this resolution.” Rick Bergmann of Steinbach, the Chair of the Canadian Pork Council, said they expect the movement of Canadian pork to China to eclipse the pace set before China’s suspension of Canadian pork imports in June. After just over four months in place, China announced an end to its suspension of Canadian pork and beef imports.
Bergmann said before June 25, the Chinese demand for pork and different cuts of pork were changing and increasing, due in part to the challenges faced by a country that is dealing with African Swine Fever. “China is our thirdlargest market. In the first part of 2019, we saw some significant increase in volume and then that all ended June 25, so it’s a critical market place for us. We sell them different cuts. We sell them products that we don’t use here in Canada either, so it’s very much a win-win customer for us,” he said. “With such a large country, we look forward to more opportunities to enhance and build on what we had in the past. As you know, African Swine Fever has been a significant challenge in many Asian countries, including China, impacted heavily by this disease; they require a nutritious form of protein. They’re looking at Canadian pork now again to fulfill their needs there. We’re very fortunate and look forward to building a stronger relationship than what we would have even had in the past.”
Bergmann said he sees the continued opportunity within China to move more and more Canadian pork. “The Canadian pork industry is working diligently to strengthen its relations with Chinese pork importers, and we look forward to significant trade moving forward.” “I am very thankful that our team of negotiating people negotiated a deal with China, and come up with a deal so that we can keep our barn doors open,” said Hog Boss James Hofer of the Starlite Colony near Starbuck. “Manitoba is a net exporting province. Seven out of 10 pigs need to leave the country for that matter. And the spinoff effect is huge. Without being selfish, just thinking about pigs, if we can’t feed the grain, the repercussions are endless.” Hofer said if we do not sell our pigs, they do not sell their grain. As agriculture grows, so does the economy “And people need to understand that if agriculture isn’t going, if commerce isn’t flowing from agriculture, it’s devastating.” Continued on Page 2...
Grain farmers across Canada are calling on both sides of the Canadian National Railway (CN) labour dispute to work together to find a solution to their issues and get trains moving again. With the vast majority of grain being shipped to market by rail, a reliable transportation system is crucial to Canadian agriculture’s success. “This strike comes at a terrible time for agriculture,” said Jeff Nielsen, Grain Growers of Canada (GGC) Chair. “Grain farmers from coast to coast are experiencing one of the most challenging harvests in recent memory and international trade disputes have closed some of our most reliable markets. Any delay in shipping will damage our access to hard-won markets that we must cultivate to survive.” With upwards of 90 per cent of grains being moved by rail, the inability to get grain to market has a significant impact on hard working farm families. If grain doesn’t move, farmers don’t get paid. With an early winter and excess moisture in many crops, farmers across Canada are already seeing added costs from grain drying eating into narrow profit margins. As of today, all propane deliveries to farms in eastern Ontario and western Quebec have been halted, bringing an already late harvest to a standstill in those areas. Any stoppage of propane deliveries means that grain drying simply cannot happen, causing grain spoilage in the bin and the field. In addition, farmers have been forced to watch profits drop due to crops still in the field degrading in value. Any added loss in profit will not be manageable for many farmers who do not have reliable, government supported business risk management programs to fall back on. “Canadian farmers are ready to ship grain but are once again at the mercy of the railways,” said Markus Haerle, GGC Vice-Chair. “We know from the rail backlogs in recent years that any slowdown in service has serious consequences throughout the whole value chain. We are not in a position to weather yet another storm.” “When one part of the grain handling system is not running, the whole chain shuts down,” added Shane Stokke, GGC Vice-Chair. “We know that CN is aware of the important role they play in the success of our industry and expect both parties to negotiate in good faith and get back to what they do best, getting Canadian products where they need to go.”