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Hog producers get help

by 5m Editor
1 June 2007, at 10:27am

CANADA - Prince Edward Island hog producers are breathing easier these days after the provincial government approved an assistance program to help maintain a minimum price per kilogram for their product.

The Maritime Lumber Bureau is meeting in Charlottetown, Prince Edward Island this week and delegates Louise Dumais and Marcel Dumais, both of Montreal, speak to Richard Bellefleur, general manager of Wellons FEI Corp., a Quebec company that services the lumber industry.

“It has provided desperately needed cash flow support to producers,” says Willem De Boer, a Brudenell hog farmer and chair of the PEI Hog Commodity Marketing Board.

He added that producers appreciate the work of Agriculture Minister Jim Bagnall in bringing forward the support program.

The hog plan provides $750,000 in immediate support to the 130 farmers to help offset low pork prices between October 1, 2006 and March 31, 2007. This is in addition to the $1.25 million that had been provided in the first half of 2006 to help offset low pork prices.

Over the last several months, Island hog farmers developed a hog plan and sought the support of elected MLAs.

The plan provides for the establishment of a price window beginning April 1, 2007, which provides cash flow benefits with all funds repaid by producers when prices go above the window.

The government chips in when prices are below $1.40 a kilogram and hog producers repay when the price is above a $1.45 a kilo.

Hog prices today (May 26) at $1.45, the highest in two years, but the average price during the past year has been $1.28.

The plan also includes adjustments to existing hog bridge loans that had been provided to producers over the past several years.

Source: Farm Focus

5m Editor