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Special Features<br />
Alberta Pork launches new strategic plan<br />
Alberta Pork launched a new strategic plan focussed directly on the need of producers at its Annual General<br />
Meeting on December 8th. Having refunded a total of 2.1 million in levy fees to producers during its 2010-11 fiscal<br />
year, the new strategic objectives are to create an environment of profitability for producers, to develop the most<br />
informed and engaged industry and to build strong relationships with industry partners.<br />
By way of background, chairman of the board Jim Haggins<br />
noted that the shrinking of the industry was not complete<br />
and some people were still leaving the industry, either<br />
voluntarily or due to bank foreclosure. Also, he said, more<br />
pigs are expected to be finished in the USA, because this gives<br />
producers access to risk management programs which create<br />
stability. The effect of this is that packers are losing volume,<br />
leading to reduced efficiency, he added.<br />
In the longer term, the aging infrastructure is a time bomb,<br />
Haggins believes, with 41% of facilities built before 1995.<br />
There was not only a lack of capital and an unwillingness<br />
of banks to lend, but no real desire to build in the light of<br />
producers’ experiences over the previous four years. “It will<br />
take 3-5 years of profits to rebuild confidence,” he said.<br />
On the positive side, there was a shifting of hog supplies to<br />
markets with better premiums and more marketing choice for<br />
producers. US producers were calling and asking for Canadian<br />
pigs, said Haggins. In addition, he suggested, there appears<br />
to be a new food price plateau established which may support<br />
industry profitability. However, he said, although empty barns<br />
can be filled and production increased, this won’t happen<br />
unless there is long term profitability. “We must stabilize the<br />
industry to encourage new investment and grow our industry,”<br />
he said. “We have the ability to compete with anyone, but we<br />
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50 | Western Hog Journal | Winter 2012<br />
need a level playing field. It is more difficult for us to export<br />
pork to the US than it is for them to export pork to us.”<br />
Alberta Pork’s Executive Director, Darcy Fitzgerald reported<br />
success with one initiative that the organization had been<br />
pursuing, improving the process for employing foreign<br />
workers. After several meetings with Jason Kenney, the<br />
Minister of Citizenship, Immigration and Multiculturalism and<br />
also Diane Finley, Minister of Human Resources and Skills<br />
Development, changes to the TFW were made. These<br />
include an increase in the length of LMOs from one year<br />
to two, or even three in some cases, and a reduction in the<br />
minimum wage that is required to be paid. The previous<br />
regional differences in wage rates have been removed and<br />
also wage rates in Alberta are now more in line with other<br />
provinces. The Alberta industry relies heavily on foreign<br />
workers and changes to the TFW process during the economic<br />
downturn made it harder and more expensive to hire people<br />
from overseas.<br />
Fitzgerald also detailed a major new project aimed at<br />
understanding costs of production in Alberta. The first part of<br />
this, a pilot project, will involve 32 producers, gathering data<br />
on a quarterly basis and making it available to the industry<br />
at large. “We want to help producers reduce the cost of<br />
production where possible, thereby helping them to become<br />
more competitive,”<br />
explained<br />
Fitzgerald. “It will<br />
allow producers to<br />
benchmark and to<br />
identify specific<br />
costs that are out<br />
of line, as well as<br />
identifying any<br />
system, facility or<br />
regional drawbacks.”<br />
Consultants will<br />
deliver solutions and<br />
advice to address<br />
THE TOTAL PACKAGE any areas where<br />
costs are out of line.<br />
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