Hog industry contributes billions to economy

Ottawa – Canada’s hog and pork production and exports contribute in a major way to Canada’s economy a recent study has found.

The study was prepared by the George Morris Centre, an independent agri-food think tank, on behalf of the Canadian Pork Council (CPC).

The study found that the economic development associated with hog production and exporting pork contributes $9.28 billion to the Canadian economy.

Value-added activity

In addition to describing the economic benefits of Canadian pork exports to the overall economy and to hog producers, the study found that Canadian pork exports in 2011 of $3.2 billion generated additional value-added activity of $3.5 billion for the Canadian economy, and some $20-30/head back to Canadian hog producers.

The CPC says the report reinforces the impact exporting pork and pork products has on the Canadian economy, the pork sector and the return for producers.

The CPC’s Chair, Jean-Guy Vincent, says that  “Canada is a globally competitive and successful producer and exporter of pork and pork products and our industry understands the key factor to sustaining our success is the ability to access a wide variety of markets.”

Economic impact

Using Statistics Canada’s System of National Accounts, Canadian Input Output Model for the pork sector, the study also found the following economic impact of pork exports:

• 45,000 jobs at the processing, farming and other supplier levels.
• $1.98 billion in wages, salaries and benefits.
• $318 million in taxes both income and product related.
• Gross Domestic Product contribution of $3.5 billion.

The CPC says Canada is a leader in the international pork industry, ranking third in terms of export volume and seventh in terms of production.

Exports have provided the impetus and ability for the Canadian hog and pork industry to continue to grow over the past decade. And robust global demand for Canadian pork has resulted in increased value and volumes going to a broader base of customer countries.  This has increased the market leverage and opportunities of the Canadian pork industry and has provided the opportunity to generate added value to the whole carcass.