Ontario pork industry optimistic for future

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

John de Bruyn said lingering value chain issues from COVID-19, high inflation and feed costs and market volatility squeezed margins, making turning a profit difficult for Ontario’s pork sector, but global demand remains strong.

Why it Matters: Despite challenges in 2023, 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.”

While the United States remains Ontario’s most important trading partner, there is increased trading potential yet to be tapped in other countries such as 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,” said de Bruyn. “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.

A lack of processing capacity close to home is a significant constraint on the growth of Ontario’s pork industry, and solutions are needed to address the issue.

“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 accurately 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 new $19.5 million Ontario Swine Research Centre was the culmination of a once-in-a-generation investment in the pork industry’s research infrastructure, shared de Bruyn.

Ontario Pork’s commitment to innovation has never wavered, and if the industry’s profound improvement over the last few decades is an indication, the new facility will continue to enhance the industry’s 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 a $1.5 million Canadian Agricultural Partnership funding, with the balance being carried by the province.

Despite their best efforts, the organization received no direct federal funding for the project.

“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.”