Agriculture and Forestry Minister Mitch Murphy today announced three new programs to expand the hog industry, provide greater stability to producers and increase pork quality. Total new investment in the industry under the three programs is up to $7 million.
A new $3.5 million loan program will provide cash flow assistance to hog producers in the form of bridge financing due to market prices that have dropped below the cost of production. The program is retroactive to August 1 of this year. The funds are being made available by the Prince Edward Island Lending Agency at interest rates of prime plus one percent and will be administered by PEI Pork. Repayment will take place when producers can trigger a payment under safety net programs or market prices return to profitability.
An information package from PEI Pork will be sent to producers as soon as possible.
Mr. Murphy also announced a hog industry expansion program totalling $2 million. The program is aimed at those producers who want to increase the size of their operations. The minister also announced that a total of $1.5 million is being made available for a "depop-repop" program. This would assist producers to improve herd health standards by acquiring disease-free stock in place of existing hogs. Funding for both programs will be in the form of a loan from the PEI Lending Agency with an interest rate of prime plus one per cent.
"The Prince Edward Island hog industry is a vital part of agriculture in this province, with farm cash receipts of $30 million and total benefits of $100 million," said Mr. Murphy. "It has a clear direction by expanding the production and marketing of high-quality branded products from disease-free herds, along with new opportunities for the sale of disease-free breeding stock to domestic and international markets."
Last week, a new branded product, called Summerside Farms Pork, was announced by FoodTrust of Prince Edward Island, PEI Pork Plus and Co-op Atlantic. The product is produced with a unique feeding regime that results in a balanced fat profile that is healthier for consumers and that has been shown as beneficial in managing cholesterol levels. The product will be available in Co-op stores across Prince Edward Island.
"We are very pleased with the confidence that the provincial government has demonstrated in the hog industry," said Ian Mutch, Vice-Chair of PEI Pork. "The industry will continue to expand, based on its vision of developing high-quality branded products that can differentiate themselves from traditional commodity markets."