Strategic Transition Plan Requires Federal Government Support

OTTAWA, ONTARIO, Jul 06 (MARKET WIRE) --
Faced with overwhelming and repeated challenges, the Canadian hog
industry has prepared a comprehensive plan to guide the sector through
the next 5 years. Prepared by the Canadian Pork Council (CPC) and
presented to the Honourable Gerry Ritz, Minister of Agriculture and
Agri-Food, the Strategic Transition Plan provides guidance on a number of
pressing issues that must be urgently addressed if the Canadian hog and
pork sector is to have a viable future.

"Producers know that in order to be profitable in future, they must be
committed to change," says Jurgen Preugschas, Chair of the CPC. "They
know that many of the fundamentals that resulted in strong growth in the
past no longer exist but that new opportunities will arise. This plan
outlines a roadmap to ensure the industry is still here to take advantage
of those future opportunities."

The document outlines precisely what a successful transition would
require, including a special H1N1 Recovery Plan Loan, adjustments to the
Advance Payments Program emergency advances and a Hog Farm Transition
Payment Program.

The plan provides a roadmap through to 2014 and describes several
characteristics of a successfully restructured industry, including:

- Domestic disappearance of Canadian pork totaling 730,000 tonnes, an
increase of 150,000 tonnes over 2008

- Exports of 4 million live hogs to the US, 5.3 million fewer than 2008

- Total pork exports of 1 million tonnes, 20% of which will be to the US

- Total domestic slaughter of 21.5 million head, 0.2 million fewer than
2008

- A reduction in total production from 31 million in 2008 to 25.5 million
pigs

- Domestic market share of 88% compared with 75% in 2008

The transition plan also includes several additional strategic
initiatives that will contribute to the long-term competitiveness of the
industry.

The CPC and its member organizations agree it is not in Canada's interest
to simply prop up the industry in an attempt to maintain the status quo.
Dramatic change is necessary and urgent action is critical.

The CPC serves as the national voice for hog producers in Canada. A
federation of nine provincial pork industry associations, our
organization's purpose is to play a leadership role in achieving and
maintaining a dynamic and prosperous Canadian pork sector.

Contacts:
Canadian Pork Council
Gary Stordy
Public Relations Manager
613-236-9239 ext 277
(c) 613-883-0650

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