Global demand for pork remains strong, buoying industry optimism

Ontario Pork’s outgoing chair delivered a sombre but optimistic assessment of the industry’s future during the organization’s annual general meeting in Guelph March 21.

John de Bruyn said lingering value chain issues from COVID-19, high inflation and feed costs and market volatility squeezed margins, making it difficult to turn a profit, but the future holds opportunity.

Why it matters: Ontario pork producers have a competitive advantage due to land base, water supply, and efficient transportation infrastructure.

“Globally, demand for pork remains strong, which continues to present export opportunities for the Ontario pork industry,” he said. “In 2023, Ontario exported close to two-thirds of our pork to 51 different countries around the world.”

The United States remains Ontario’s most important trading partner, but there is increased trading potential in Japan, South Korea, Vietnam and the Philippines.

Last year, Ontario pork producers marketed 5.8 million hogs, supported approximately 18,500 jobs and generated $1.34 billion in GDP, which translates to $3.5 billion in economic output, reflecting the industry’s overall financial value, said de Bruyn.

“The main challenge for our industry is to remain competitive in a constantly changing marketplace and regulatory environment.

“It’s crucial that the government maintain a viable business climate while addressing its public policy goals.”

Over the last year, Ontario Pork board members have brought risk management, farmland severances, animal care, environment and processing capacity to the table with provincial and federal government representatives and parliamentary committees.

Lack of processing capacity close to home is a significant constraint on growth of Ontario’s pork industry, and solutions are needed.

“If we want our industry to grow, this constraint needs to be resolved,” he said. “And in my mind, the business climate has never been better, as the provincial government is keen to support economic growth and has recognized the shortfall in processing capacity in the park sector.”

The board pushed the government on the importance of a detailed carbon footprint analysis and benchmarking of Ontario’s pork farms to set realistic goals, track progress and measure the effectiveness of sustainability initiatives in meeting federal climate action goals.

“By pinpointing where the highest emissions occur, targeted strategies could be developed,” said de Bruyn. “I think understanding the new language of the carbon footprint of pork production is essential for us to advocate for effective policies and incentives.”

The opening of the $19.5 million Ontario Swine Research Centre was the culmination of a once-in-a-generation investment in the pork industry’s research infrastructure, said de Bruyn, noting the industry’s steady commitment to innovation.

If the industry’s profound improvement over the last few decades is an indication, the new facility will enhance competitiveness and success, he said.

Ontario Pork collaborated with the University of Guelph and the Ontario Ministry of Agriculture, Food and Rural Affairs, fronting $3.6 million for the project alongside $1.5 million from the Canadian Agricultural Partnership. The balance was carried by the province.

“Our industry is poised to undergo significant transformation driven by advancements in technology, changing consumer preferences, sustainability goals, as well as global economic forces,” de Bruyn told Farmtario.

“The industry’s ability to adapt and innovate will play a crucial role in keeping us competitive in the world market.”