Canadian pork hit in trade tiffs Canada not involved in

Pork producers should be eligible for special financial assistance.OTTAWA—The U.S.- China tariff battle is sideswiping Canadian pork producers who are looking to the federal government for help, says the Canadian Pork Council (CPC).“Ongoing uncertainty in global pork markets has resulted in Canadian pigs being sold at prices that are 30 per cent lower than this time last year, CPC said. “Canadian farmers are in an extraordinarily difficult financial position.”They're looking for the kind of financial assistance that Grain Farmers of Ontario has said should be available through the $2 billion contingency fund the federal government created to assist industries caught in just the situation pork producers are.That program isn't available to agriculture and the Canadian Agriculture Partnership (CAP) doesn't include provisions to support farmers and the agriculture industry if there are major price shocks or other damages from trade disputes, GFO said.Meanwhile Farm Credit Canada said in an upbeat outlook for the beef sector that it could be disrupted by the fallout from trade battles. “Feeder and calf prices through to August averaged steady to higher than last year, while fed cattle prices have been a bit lower.”While domestic and international demand for beef remains strong, “trade uncertainty continues to hang over the market, and adds foreign exchange risk, which can have a significant impact on Canadian producers,” FCC said.In its July 1 cattle inventory report, Statistics Canada said, “There are 12.4 million head of cattle in Canada, 0.8 per cent below a year ago, and the smallest July 1 inventory since 1988.” As well, “factors like rising feed costs and the subsequent increased cattle to market as a result could restrict calf demand during the fall run,” it said.CPC Chairman Rick Bergmann said, “The financial stress on individual producers is increasing rapidly. We need to act and act quickly. I look forward to meeting with Minister MacAulay to discuss the situation as soon as possible.”Prices received by Canadian pork producers are based on prices to American farmers, he said. “Unfortunately, the fallout from trade disputes between the United States and key pork markets such as China, Mexico and Canada has intensified the normal seasonal decline in prices.”While Canadian pork is not subjected to any retaliatory tariffs, its link to U.S. prices makes Canadian producers “the real victims of the trade dispute,” he said.That's because the U.S. government includes pork in its $12 billion trade mitigation package, designed to offset damages caused by Chinese tariffs imposed in response to American tariffs.“Canadian farmers, facing exactly the same market conditions, need similar support from our federal and provincial governments,” Bergman said. “While we can compete and succeed in normal market conditions, we need immediate, short-term support to help weather this storm.”Canada is the third-largest supplier of pork to global markets. Approximately 70 per cent of its production, valued at $4 billion, is exported. Without financial assistance, the sector could be in severe jeopardy.GFO Chairman Markus Hearle said the U.S. “understands that supporting farmers and helping them run successful businesses in times of hardship is imperative to the economy.” The federal government needs to level the field for Canada's farmers.The government has yet to respond to the GFO proposal.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.