Farmscape for August 7, 2018
A Principle Agricultural Economist with Farm Credit Canada says developments on the trade front will be a factor to consider over the next six to 18 months.
Farm Credit Canada's 2018 mid year economic outlook for Canada's hog and pork sectors, released in July, indicates higher slaughter hog inventories will pressure live hog prices but thanks to continued strong demand for pork the outlook over the next six to 18 months remains positive.
Craig Klemmer, a Principle Agricultural Economist with Farm Credit Canada, says on the trade side of things there is a lot happening right now.
Clip-Craig Klemmer-Farm Credit Canada:
We have TPP deals that are being pushed forward and moving along and that looks to provide some increased export opportunities for Canadian pork into the Asian market and into markets in the Pacific-Asia area of the TPP countries.
We've seen some strained negotiations between other partners and that's going to provide, in some ways, some opportunities but also some threats.
When we look at that, the U.S. is a very large market as an exporter of hogs and their hog supply there has been increasing and it's going to change the dynamics of trade overall.
We may not be trading with the same partners that we have been but there has been growth opportunities in other markets and it's really difficult to figure out how that's all going to play out as there's a number of trade disruptions between some major partners at the moment and at this point it's just monitoring it and looking for those opportunities.
At this point we continue to see strong demand for pork around the world and, as we see wages increasing in North American and other parts of the world, that's going to continue to spur strong demand for pork and other red meats going forward as well.
Klemmer says consumers are continuing to choose pork and that strong demand is good news for the industry.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork