Support for Nova Scotia Hog Sector

In an effort to offset the impact of a severe downturn in world hog prices, Agriculture and Marketing Minister Ed Lorraine today announced additional support for Nova Scotia hog producers by increasing funding for the provincial Pork Risk Management Program.

At this time last year, producers received approximately $144 per carcass. This year, producers are receiving $76.18 per carcass, representing close to a 50 per cent price decrease.

"This is a $100 million industry in Nova Scotia that has a major impact on our rural economy through direct jobs and spinoffs," said Mr. Lorraine. "Uncertainties and fluctuations in the Asian market, and the rapid expansion of hog operations in the United States and western Canada, has lead to a severe drop in hog prices and we wanted to support the industry as best we could."

The Pork Risk Management Program was created in 1996. It is a fund producers can draw on to stabilize incomes when market prices are low. The department, producers and processors make matching contributions to the fund. As of Dec. 1, 1998 all three parties will double their contributions to the fund from $3.50 to $7 per hog.

"Even during this difficult time, producers and processors are contributing to the future of their industry," said Mr. Lorraine. "I commend them for joining us in increasing their contributions for the good of the sector."

"The increase in contributions to the fund by the government and processors is a positive message to producers that there is support to help carry them through this period of low prices," said Henry Vissers, executive manager of Pork Nova Scotia.