Canadian pork producers asked the Canadian Pork Council (CPC) back in 2018 how a unique Canadian pork price can be set to decouple the price from the American market.
The American price is used as the benchmark for Canadian prices because enough hogs are sold outside of contracts for packers to bid on, which results in more price transparency than is available in Canada.
The end result of studying how to decouple the Canadian price from American is still ongoing but other steps have been taken.
“We did develop the Made-in-Canada Hog Price Indicator,” says Gary Stordy, director of government and corporate affairs with the Canadian Pork Council.
It provides farmers the appropriate information and tools to negotiate pricing when managing contracts. It also provides producers with more information that they can use to understand how the current pricing works.
“As they talk with their processors, or who they sell their animals to, they are more informed and they can negotiate a stronger price.”
Work continues to explore the feasibility of establishing a price that reflects the value of Canadian pork.