Farmscape for January 11, 2019
The President of Kerns and Associates suggests Canada has an edge in terms the potential to gain market share in higher value export markets.
"Tariffs, Trade, & Trepidation-The Implications on the Pork Sector Now and Into the Future" was discussed yesterday as part of the Banff Pork Seminar.
Joseph Kerns, the President of Kerns & Associates, says roughly 25 percent of U.S. pork production is exported while two thirds of Canadian production is exported so Canada is much more export dependant and exports markets especially to Pacific Rim countries that are adding population, adding income and upgrading diets are key to future growth.
Clip-Joseph Kerns-Kerns & Associates:
I applaud the Canadian producers for really being value added and listening to their consumers.
When you spend time overseas in these high value markets, specifically in Japan, you'll see color scores that are much more closely adhered to, you've got slower line speeds in Canada relative to the United States, you do a lot more sorting, you do a lot more precision as far as the packaging is concerned to meet that consumer demand.
The high value production of Canada I see continuing to gain a foothold and even usurping the United States as far as volume is concerned into the highest value markets, namely Japan but the United States being a commodity play by en large also benefitting from a global GDP that continues to increase.
Again largely these Pacific Rim countries that have larger populations, larger incomes and no religious restrictions that keep them away from the pork industry.
When you take a look at some other areas in Asia you're going to have some Muslim populations that continue to rise up and more than likely that benefits the poultry side of it.
But clearing some poultry off the decks that doesn't compete with pork products is also a benefit so I see a lot of opportunities regardless of the sector you're currently in.
Kerns says the Canadians can be much more nimble with their production in terms of packing and, given the dollar exchange rate, the Canadians get exponentially more in these high value markets.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork