News Release

FOR IMMEDIATE RELEASE

FINANCIAL CRISIS FAR FROM OVER FOR STRUGGLING PORK PRODUCERS

ETOBICOKE, ON, JANUARY 22, 1999 -   Pork producers in Ontario view the recently released government funds as just one small piece of a solution in the huge puzzle of problems they are currently facing.

Pork prices reached a record low of $36.68 per 100 kg the week of December 27, 1998. This week's average price was $102.15 per 100 kg. The price has been steadily climbing upwards, but is still well below the Ontario Ministry of Agriculture, Food and Rural Affairs calculation of the average cost of production of $141.94 per 100 kg (OMAFRA Pork News and Views, December 1998). "The upward trend in the cash and futures markets is a positive sign for pork producers. Unfortunately, the crisis is far from over as farm families struggle to catch up on bills that haven't been paid in months. It seems that the government's Whole Farm Income Assistance funds will only help a relatively small percentage of farmers because of whole year income averaging, and no accounting for significant reductions in inventory values," stated Paul Knechtel, C.E.O., Ontario Pork.

"Ontario Pork is spearheading a Voluntary Pork Producer Loan program in conjunction with industry stakeholders including financial institutions, feed companies, and government. This loan program is needed immediately for pork producers to rebuild the extreme losses in equity. We cannot afford to lose the pork industry in Ontario and the $4.5 billion it contributes to the economy," commented Will Nap, Chairman, Ontario Pork.

Ontario Pork represents 6,000 producers in Ontario in many areas including hog marketing, consumer education, research, government representation, environment, animal care and quality assurance programs.

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