Farm-Scape is sponsored by Manitoba Pork Council and Sask Pork Play Audio Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council and Sask Pork.

Farm-Scape, Episode 1410

In an effort to support its producer members Manitoba Pork Council is reducing producer levies and holding the line on its 2004 budget.

Effective January 1, the levy on market hogs and culled sows and boars will fall from 85 cents per head to 80 cents and the levy on export weanlings will move from 20 cents per animal to 19 cents.

Pork Council Chair Marcel Hacault says the board of directors is made up of producers, its members are aware of the difficulties and, like farmers, will be doing more with less.

"Those of us that are in the pig industry know that it's a cyclical industry and last year, in 02, we thought that was the downturn and that the year 03 would be the year where we would make up some lost ground.

Because of some events out of our control, the strength of the Canadian dollar verses the US and the collateral damage from the BSE on our industry, we've had two events that have cut down that recovery in prices.

It's enough so that this year may, in all likelihood, be a tougher year financially for most farmers than last year.

Somebody said 'what's happening to our industry is similar to the whole frog in hot water scenario.'

We thought the water was hot last year and then this year, without realizing, that water has gotten hotter and hotter.

We may find ourselves in boiling water right now and we won't have realized it."

Hacault says there's not a lot of money to be made right now so, if producers are going to stay in business, they have to lower their cost of production so each is looking at his or her operation to see where they can make a dollar.

He says some of the larger producers have put expansion plans on hold and reduced staff while some of the smaller producers have either gotten rid of their sows or their market pigs.

For Farmscape.Ca, I'm Bruce Cochrane.