Agriculture and Forestry Minister Eric Hammill announced today that additional incentives will be made available to hog producers under the department's Swine Quality Improvement Program. Effective Monday, May 11, all hogs marketed through licensed Prince Edward Island abattoirs and meeting existing weight and index eligibility requirements will receive an additional $10 per hog on about 80 percent of hogs marketed in the province which meet the eligibility requirements.
"This additional incentive is being provided in support of the major investments being made by hog producers to supply high quality swine suitable for high value niche markets," said Mr. Hammill. "It also recognizes that Island processors are working hard to increase returns by exploring the options for new and expanded markets for premium products. Unless local processors can access markets which allow them to compete successfully for product share, I am very concerned for processing jobs on Prince Edward Island."
Mr. Hammill said the additional incentives will buy the processing sector some time. The incentives will remain in place until current market development initiatives and options have been evaluated. He said the department will be meeting with the Hog Board on a weekly basis to review market options and current prices. He noted that hog markets have strengthened in recent weeks, from a low in the $1.20 per kilogram range last fall to this week's opening price of $1.55.
The minister said the department remains committed to the goal of helping expansion in the hog industry. He said the additional incentives are in support of the industry's efforts at quality improvements, the adoption of an environmental code of practice and the implementation of other quality improvement initiatives such as on-farm HACCP.
Donald MacDonald, Chairman of the Prince Edward Island Hog Commodity Marketing Board, said the Board is working closely with processors to identify and access more lucrative markets for pork products. "While these market development efforts are being pursued, it is in the best interests of the hog industry to continue with a coordinated approach" he said.
Mr. Hammill commended the Hog Board for its efforts to improve quality and the Island's herd health status, the highest in Canada.
"I am confident the Island's hog industry can compete aggressively with premium products and also work towards expanding markets for the high quality of our genetics," he said.