Feds announce $567.16 million to guard against African Swine Fever

 

The federal government announced Monday that it will spend up to $567.16 on measures to keep African Swine Fever out of Canada.

It has devastated the hog industry in China, has spread through Europe’s wild boar population and has shown up in the Dominican Republic.

If it arrives in Canada, hog and pork exports would be stopped in their tracks. About 70 per cent are exported.

Pork farmer leaders have asked the government for greater clarity on compensation if the disease ever breaks out here.

“Farmers need to know they have cash to be able to continue to feed the pigs, to be able to pay their staff, to be able to purchase feed, so on and so forth,” the Canadian Pork Council’s veterinary counsellor, Dr. Egan Brockhoff, said after one ASF readiness test last year.

The federal government offer is conditional on achieving agreements with the provinces and territories on a 60-40 funding split.

Canada has a partnership program called African Swine Fever Preparedness Program.

CFIA lifts quarantines

 

The Canadian Food Inspection Agency has lifted quarantine zones in Oxford and Wellington County after it was satisfied that avian influenza outbreaks there are no longer a threat to commercial poultry farms.

But a quarantine zone in Middlesex Centre has been expanded since the original outbreak there was declared Feb. 28.

American diesel under investigation

 

The Canada Border Services Agency has launched an investigation into imports of biodiesel from the United States.

Tidewaters Renewables Inc. filed a complaint with the agency, claiming the fuel is being sold at less than the cost of production and should therefore qualify to be hit with an anti-dumping tariff.

The case has no connection with the tariff trade war launched by United States President Donald Trump.

Tidewater alleges that due to an increase in the volume of dumped and subsidized imports from the U.S., they lost market share and sales and saw price depression and reduced profitability, the CBSA said.

The Canadian International Trade Tribunal will investigate if imports are harming Canadian producers, and will issue a decision in early May. 

The CBSA will look into whether imports are being sold at unfair prices or are being subsidized. That preliminary decision will come in early June.

China hits canola, pork and peas

 

China is going to apply a 100 per cent tariff to Canadian canola oil, oil cakes and pea imports, and a 25 per cent duty on Canadian pork and aquatic products.

It is retaliation for Canada’s 100 per cent tariff on electric vehicles and 25 per cent on steel and aluminum.

Both of those were imposed to match tariffs imposed by the United States. It keeps Canada from being a back door for China to move products to U.S. customers.

Trump shuts down food safety advisory committees

 

United States President Donald Trump has fired everyone working on two food safety advisory committees.

The United States Department of Agriculture notified members of the National Advisory Committee on Microbiological Criteria for Foods and the National Advisory Committee on Meat and Poultry Inspection that their committees have been disbanded. 

The memo said they should “immediately stop all work, meetings, everything. Any more recommendations are prohibited.” 

Smithfield pork banned from Canada

 

Pork from the Smithfield Foods Inc. plant at Tar Heel, North Carolina, have been banned by the Canadian Food Inspection Agency which has raised issues about offal.

The plant is Smithfield’s largest pork-packing plant.

Canadians and Americans conduct spot checks of each other’s exporting packing plants and suspend the ones that are found failing to comply with their own country’s standards.

PDCoV in Middlesex

 

 

Swine Health Ontario reported there has been an outbreak of porcine deltacoronavirus at a hog finisher barn in Middlesex County.

Cranfield is new dean of OAC

  

John Cranfield has been chosen dean of Ontario Agriculture College at the University of Guelph.

He has been interim dean since July, 2023.

Cranfield’s earned bachelor and master degrees in agriculture economics from the University of Guelph and taught at the University of Manitoba before returning to Guelph in 2001. 

Poultry scientists slam Trump

 

The Poultry Science Association (PSA) joined more than 50 academic groups and research institutions this week in a letter “strongly” urging Congress “oppose the current Administration’s policies that are harming the U.S. scientific enterprise.”

 

The letter to Republican and Democratic leaders in the Senate and House, as well as committee chairs and ranking members in both chambers, said that “recent actions have disrupted vital scientific research, impeded scientific meetings and review panels, delayed salary payments for students and postdocs, dismantled key workforce development programs, and caused the unnecessary loss of vital experts from federal research agencies. 

“We call on Congress to assert its constitutional authority and take immediate actions to reverse these policies, which threaten the integrity, progress, and global leadership of American science and technology.”

Federal spending on biological science is “critical” for national priorities including “supporting agricultural innovation, ensuring food security, and protecting biodiversity and ecosystems,” the joint letter said.

Canada tariffs poultry and dairy at 25 per cent

 

Canada will go ahead with a 25 per cent tariff on poultry and dairy products but has paused the tariff for beef and pork to April 2, the same date United States President Donald Trump set for delaying his 25 per cent tariffs on everything but energy from Canada. The energy tariff is 25 per cent and there is a 25 per cent tariff on steel and aluminum.

Canada’s tariffs are to remain in effect until Trump stops threatening tariffs and until he withdraws his new tariffs on steel and aluminum.

The poultry and dairy tariffs will apply to the import quotas that are part of the Canada-U.S.-Mexico (CUSMA) trade agreement. Imports covered by the quotas have been at much lower rates.

Canadian Finance Minister Dominic LeBlanc announced the decisions late Thursday, after U.S. President Donald Trump signed orders postponing or easing 25 per cent tariffs on large amounts of Canadian and Mexican goods.

Trump slapped tariffs Tuesday on all goods Canada and Mexico, demanding more action against drug trafficking and illegal border crossing, while claiming that trade deficits constituted “subsidies” to the United States’ neighbors. 

Only miniscule drug trafficking and illegal border crossings originate in Canada, but the Globe and Mail has reported that Trump’s administration includes all seizures in Northern States even though many of those originate in Mexico.

Trade deficits have never been labelled subsidies before Trump said they are.

Poultry processors paying $41.25 million

 

Seven poultry processing companies have agreed to pay $41.25 million ($66.85 million Cdn.) to settle a price-fixing lawsuit.

A judge in Illinois federal gave preliminary approval for settlements with Harrison Poultry, House of Raeford, Koch Foods, Mountaire, O.K. Foods, Sanderson Farms and Simmons Foods.

The settlements bring the total class recovery in the case to $145.14 million ($207 million Cdn.).

Ag Secretary has egg price solution

United States Secretary of Agriculture Brooke Rollins said Americans who are concerned about high egg prices should consider keeping a few chickens.

But won't that frustrate attempts to stop the spread of highly-pathogenic avian influenza, the virus responsible for rising egg prices?

And just how much does she think consumers who keep a backyard flock would save?

One economist calculated that even if retail egg prices were to rise to $10 a dozen, the eggs from a backyard flock would cost about $300 more.

And when U.S. President Donald Trump addressed Congress Wednesday night, he blamed former President Joe Biden for high egg prices. I guess it's because Biden didn't urge people to produce their own eggs.

Turkey levy increases

 

The production levy that finances the Turkey Farmers of Canada supply management agency will rise from 1.8 to 2.1 cents per kilogram on April 1.

The increase has been approved by the National Farm Products Council.

Farmer sentiment improves

 

Farmer sentiment improved in February as the Purdue University-CME Group Ag Economy Barometer rose by 11 points from January to 152 in February.

The Current Conditions Index reading of 137 was 28 points above January’s reading. It has been on a steady climb since late summer and early fall, 2024, when the index bottomed out at 76.

A sharp crop price recovery in the last several months, which was augmented by expectations for receipt of disaster payments authorized by Congress, combined with strength in the U.S. livestock sector, contributed to producers’ improved appraisal of conditions on their farms and in the U.S. agricultural sector. 

Despite the big improvement in the Current Conditions Index, the February Future Expectations Index was still 22 points higher than the current index, suggesting that farmers expect conditions to improve further. It was up by three points to 159.

Chicken leaders deliver upbeat reports

 

Chairman Murray Opsteen and General Manager Denise Hockaday delivered upbeat reports on last year’s performance when chicken industry leaders met recently for the annual meeting of Chicken Farmers of Ontario.

Opsteen said “while consumption is slightly down from pre-pandemic levels, the decline is less than other protein meals – including plant-based options.

He said “despite a historically challenging period behind us, we know there is a lot to look forward to.”

Hockaday said consultations related to the distribution of growth supply to processors were completed, and the board of directors finalized decisions on future programs, which will be rolled out in 2025 and beyond.

She said pricing negotiations were successfully concluded, finalizing the producer margin for 2025.

And “despite a significant increase in chicken imports to Canada in 2024, domestic demand remained strong, leading to an almost one per cent increase in domestic allocations over 2023.”

She said there was significant collaboration with farmers to ensure compliance with the Modular Loading Regulation, that chick ordering was simplified and data quality improved by removing the two per cent allowance for extra chicks and collaboration with Chicken Famers of Canada on in-barn hatching requirements.

Board chair Amy Cronin said hatching egg commission leaders and the chicken board were able to develop a better relationship, ending several years of tensions.

Hockaday reported that reovirus was added as an insurable peril for chicken farmers through the Poultry Insurance Exchange.

She also said the Feather Board Command Centre became an incorporated organization. It has been busy helping farmers and the industry deal with outbreaks of avian influenza that resulted in establishment of quarantine zones and destruction of infected flocks.

And she said design efforts advanced for the new Ontario Poultry Research and Innovation Centre.

U.S. farmers brace for tariff fallout

While the full economic consequences of the tariff trade war remain to be seen, United Statea Secretary of Agriculture Brooke Rollins promised to have a plan, such as the Market Facilitation Program (MFP), ready for farmers, if needed. 

In 2019, MFP provided direct payments to producers impacted by retaliatory tariffs, resulting in the loss of traditional exports, such as soybeans to China.

“Everything is on the table right now. Everything. I know that President Trump, whom I speak with regularly, realizes the state of the farm economy in this country,” Rollins said on Sunday at Commodity Classic.

 “The last time, I know, he pushed Secretary (Sonny) Perdue to ensure we were able to make whole–as best as we could–some of those, and hopefully most of those, if not all, who had been hurt. We’re building the team at USDA (United States Department of Agriculture) to ensure we have the structure and the plan in place to allow us to move very quickly.”

USDA Economist Seth Meyers says he has been instructed by Secretary Rollins to be ready for a relief program, and he’s started calculating what possible relief could look like. 

“Calculating something right today would not be helpful because we don’t know where we’re going to be, but absolutely, the Secretary instructs: ‘you need to be ready, have your pencil sharpened and have your tools available. Think about how you would proceed,’” Meyers said.

 “We are ready in that backstop. It won’t be easy. We’ve talked a lot about different countries. We’ve talked about reciprocal trade, but we are indeed sharpening our pencils to be able to do what she’s asked us to do.”

American Farm Bureau President Zippy Duvall expressed alarm about potential harm to farmers resulting from imposing stiff tariffs on the top three agricultural markets by value for the U.S.

“Farm Bureau members support the goals of security and ensuring fair trade with our North American neighbors and China, but, unfortunately, we know from experience that farmers and rural communities will bear the brunt of retaliation.” Duvall said.

Of note, more than 80% of the U.S. supply of potash, a key fertilizer product, comes from Canada.

“Tariffs that increase fertilizer prices threaten to deliver another blow to the finances of farm families already grappling with inflation and high supply costs,” Duvall adds. “The uncertainty hits just as operating loans are being secured and spring planting approaches, leaving farmers in a tough spot.”

“Farmers are frustrated. Tariffs are not something to take lightly and ‘have fun’ with,” he said, a reference to a comment Trump made to farmers when he launched tariffs.

 Not only do they hit our family businesses squarely in the wallet, but they rock a core tenet on which our trading relationships are built, and that is reliability. Being able to reliably supply a quality product to them consistently,” said Caleb Ragland,  president of the American Soybean Association.

Neil Caskey, chief executive officer of the National Corn Growers Association (NCGA), said  “we issued a study back in the fall that documented the implications of tariffs and specifically retaliation in a trade war — it’s not good for corn farmers, farmers in general.

“We did that in conjunction with the American Soybean Association, and it concluded a trade war is really only good for Brazil, and we hope to avoid that.” 

The top two destinations for corn and ethanol are Mexico and Canada. According to Krista Swanson, chief economist, NCGA, 40 per cent of U.S. corn exports go to Mexico and more than 40 per cent of U.S. ethanol exports are shipped to Canada.

Meanwhile, what did Canada's agriculture minister say? That he will not be running for re-election.

New Harvest given $1 million

The federal government is giving $1 million to New Harvest Canada which is based in Edmonton and works as a joint venturre with the University of Alberta to develop meat grown from animal cells.

New Harvest also has bases in California and Europe and funds research into using animal cells to grow meat in laboratory conditions.

The partnership with the University of Alberta began in 2022 to “provide infrastructure, support and funding opportunities for innovators and researchers.“

It said then that “the institute will be a platform for new ventures and intellectual property development focused on creating the future of food through cellular agriculture. 

"In addition to the support and development of groundbreaking venture opportunities, the associated partnership will facilitate collaboration to develop and rapidly commercialize promising technology across a national network," it said in 2022.

Clemens Group faces loss of workers

A Michigan packing plant that often buys Canadian pigs faces the potential loss of about 400 Haitian workers by August.

Clemens Food Group in Michigan’s Branch County faces labor disruption because the Haitian workers could lose their legal status following the revocation of Temporary Protected Status by the administration run by United States President Donald Trump.

The policy change, set to take effect in August, impacts thousands of Haitians nationwide, including approximately 400 workers at Clemens’ Coldwater pork processing plant.

General Manager Joe Hughes said the company is working with affected employees to explore visa options but acknowledged that losing such a large fraction of the workforce would significantly impact operations. 

“These are people actually doing the day-to-day work,” Hughes said. “If team members don’t show up, the product doesn’t get made. Customers don’t get their product.”

The uncertainty comes as Clemens plans a $150 million expansion at the Coldwater facility, expected to add 400 jobs by fall 2026. Hughes said the potential loss of Haitian workers could affect short-term expansion plans but that the company would continue moving forward long-term.

Ginseng not selling well

 

The Ontario Ministry of Agriculture Food and Agribusiness reports that it still has $2,917,812 outstanding on loans made to ginseng growers for the 2023 crop and another $8,464,809 for the last year’s crop.

The Ginseng Growers Association has not responded for weeks to an e-mail asking for an interview about the markets for ginseng.

The loan program was introduced in 2022 as a pilot project.

The government guarantees loans of up to $1 million through its Agriculture Credit Corporation.

The loans for up to 36 months are at the prime rate of interest.

Egg Farmers again wins employer award

Egg Farmers of Canada has once again been named one of the top 10 employers in the Ottawa Region.

It was selected for its people-focused programs and workplace experience that embraces diversity, equity, inclusion and belonging. It It It has a comprehensive compensation and benefits package, paid time off for volunteering and professional development opportunities. 

New policy updates—including more flexibility on hours of work and the option to substitute other denominational holidays for statutory holidays such as Christmas or Easter—were recently implemented, putting into practice recent employee feedback and input. 

"Our corporate culture and the sense of community we nurture in our workplace is one of the keys in our ability to meet challenges and deliver on our mission. We have a strong and capable team, and it's their hard work and dedication that has once again earned us this tremendous honour," said chief executive officer Drew Black. 

Egg Farmers of Canada also holds the title of one of Canada's Most Admired Corporate Cultures™ by Waterstone Human Capital and is part of Canada's Most Admired Corporate Cultures™ Hall of Fame.

                           

MacAulay announced retirement

Federal Agriculture Minister Lawrence MacAulay has announced he will be retiring because he will not run in the next election which could come within months.

He has been a Prince Edward Island Member of Parliament since 1988 and has twice been agriculture minister and also minister of labour, of veterans affairs and solicitor general.

“With a heavy heart, but no regrets, I have decided that I will not be a candidate in the next federal election,” he wrote.

He was elected 11 times and served under six prime ministers.

Trump tells farmers to ramp up production

 

United States President Donald Trump told farmers to ramp up production because his tariffs will reduce imports and generate increased domestic demand.

But as soon as his 25 per cent tariffs on everything from Canada and Mexico and 10 per cent from China took effect, trading partners fought back with tariffs on U.S. foods, including China taking aim at chicken, pork and farm machinery and Canada on produce.

Trump posted on his Truth Social platform: “To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States. Tariffs will go on external product on April 2nd. Have fun!”

Trump has threatened tariffs on a range of products and companies since taking office, including reciprocal tariffs to match those of other nations that could go into effect on April 2.

For decades, Trump has complained that other countries do not practice fair trade, saying countries such as China and members of the European Union do not accept U.S. products, including agricultural products.

Solio is recovering

 

Solio reported a 39 per cent improvement in profits after taking a beating last year on its ownership of Olymel and a drastic reduction in hog production and processing in Quebec.

“The effects of our recovery plan are accelerating,” said Pascal Houle, chief executive officer.

“We’ve strengthened our financial position, boosted operational performance and improved our profitability, … but we can’t let our guard down," he said.

It had net earnings of nearly $197 million. 

It had higher chilled pork sales thanks to higher demand in domestic, and Asian markets contributed to the improved results.

But Olymel’s turkey division had lower sales.