Agriculture and Forestry Minister Eric Hammill announced today that the department will be terminating the temporary incentive to hog producers on August 28. The incentive, which has been in place since May 11, paid producers $10 per hog marketed through Island abattoirs which met certain weight and quality requirements. It was established to eliminate the incentive to ship hogs out of the province for higher prices while discussions on markets and a pricing agreement were ongoing between Maple Leaf Foods, hog producers and the provincial government.
Mr. Hammill said the temporary incentive has achieved part of its objective. "The number of hogs shipped to processors outside the province did not increase, and that has benefitted Garden Province Meats and protected jobs for employees," he said.
Mr. Hammill emphasized that plant jobs were the key consideration in implementing the program. "It has also provided ample opportunity for discussion between producers and processors," he said. "I expect that by August 28, both producer and processor shareholders of Garden Province Meats will have determined their best course of action."
The department has spent over $300,000 on the program.
"We will continue to work with the Board and with Maple Leaf Foods to rebuild the trust and goodwill which has been essential to the successful Garden Province Meat partnership," said Mr. Hammill.
The province produces more than 180,000 hogs each year, over 90 percent of which are processed on the Island. The hog industry is valued at approximately $100 million to the provincial economy.