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High loonie won't fatten profits for pig farmers

by 5m Editor
24 September 2007, at 11:09am

CANADA - If you import lettuce or oranges from south of the border, the high Canadian dollar ripens your smile, but if you're a pig farmer, chances are the red-hot Canuck buck feels like another punch in the belly.

As is the case with most sectors of the economy,when it comes to fruits, vegetables,wheat and meat, the soaring loonie is a two-sided coin good for some and bad for others.

One of the biggest pinches is in the livestock sector, particularly cattle and hogs, where exports are counted on to bring home the bacon.

"It's really hard on us," says Neil Ketilson, general manager with SaskPork, a Saskatoon-based organization of pork producers. "The whole industry is in a great deal of difficulty."

As is the case with many other agricultural commodities, pork is priced off the American market in U.S. dollars. Around 40 per cent of Canadian pork is exported to other countries second to only Denmark on a global scale with the lion's share going to the U.S. and Japan. Ketilson explains that the Canadian farmer who made more than C$1.35 for every US$1 just a few years ago now only makes C$1 with the Canadian and U.S. dollar worth about the same.

Source: HfxNews.ca

5m Editor