WHJ-Winter2012

Special Features
Alberta Pork launches new strategic plan
Alberta Pork launched a new strategic plan focussed directly on the need of producers at its Annual General
Meeting on December 8th. Having refunded a total of 2.1 million in levy fees to producers during its 2010-11 fiscal
year, the new strategic objectives are to create an environment of profitability for producers, to develop the most
informed and engaged industry and to build strong relationships with industry partners.
By way of background, chairman of the board Jim Haggins
noted that the shrinking of the industry was not complete
and some people were still leaving the industry, either
voluntarily or due to bank foreclosure. Also, he said, more
pigs are expected to be finished in the USA, because this gives
producers access to risk management programs which create
stability. The effect of this is that packers are losing volume,
leading to reduced efficiency, he added.
In the longer term, the aging infrastructure is a time bomb,
Haggins believes, with 41% of facilities built before 1995.
There was not only a lack of capital and an unwillingness
of banks to lend, but no real desire to build in the light of
producers’ experiences over the previous four years. “It will
take 3-5 years of profits to rebuild confidence,” he said.
On the positive side, there was a shifting of hog supplies to
markets with better premiums and more marketing choice for
producers. US producers were calling and asking for Canadian
pigs, said Haggins. In addition, he suggested, there appears
to be a new food price plateau established which may support
industry profitability. However, he said, although empty barns
can be filled and production increased, this won’t happen
unless there is long term profitability. “We must stabilize the
industry to encourage new investment and grow our industry,”
he said. “We have the ability to compete with anyone, but we
Are you reading someone
else’s copy of the Western
Hog Journal?
If so, why not sign up for your
own subscription?
Just call Barb Brimmage on
1.877.247.7675 or email your contact
details to info@albertapork.com
Get the latest technical
information and pork industry
news sent direct to your
mailbox – sign up now!
Subscription is free!
50 | Western Hog Journal | Winter 2012
need a level playing field. It is more difficult for us to export
pork to the US than it is for them to export pork to us.”
Alberta Pork’s Executive Director, Darcy Fitzgerald reported
success with one initiative that the organization had been
pursuing, improving the process for employing foreign
workers. After several meetings with Jason Kenney, the
Minister of Citizenship, Immigration and Multiculturalism and
also Diane Finley, Minister of Human Resources and Skills
Development, changes to the TFW were made. These
include an increase in the length of LMOs from one year
to two, or even three in some cases, and a reduction in the
minimum wage that is required to be paid. The previous
regional differences in wage rates have been removed and
also wage rates in Alberta are now more in line with other
provinces. The Alberta industry relies heavily on foreign
workers and changes to the TFW process during the economic
downturn made it harder and more expensive to hire people
from overseas.
Fitzgerald also detailed a major new project aimed at
understanding costs of production in Alberta. The first part of
this, a pilot project, will involve 32 producers, gathering data
on a quarterly basis and making it available to the industry
at large. “We want to help producers reduce the cost of
production where possible, thereby helping them to become
more competitive,”
explained
Fitzgerald. “It will
allow producers to
benchmark and to
identify specific
costs that are out
of line, as well as
identifying any
system, facility or
regional drawbacks.”
Consultants will
deliver solutions and
advice to address
THE TOTAL PACKAGE any areas where
costs are out of line.
www.genesus.com