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14 March 2007March 14, 2007

The Stabilization Insurance program and the crisis in the pork industry

Economic Note on the reasons behind the recurrent nature of the pork industry “crisis”

The Stabilization Insurance program and the crisis in the pork industry

In the last few months, serious setbacks afflicting Quebec’s pork industry have been making headlines: the closing of slaughterhouses and processing plants, layoffs, and financial losses. A number of causes have been used to explain this crisis, in particular the rise of the Canadian dollar, industry cycles, high sickness levels, a lack of competitiveness among slaughterhouses, added costs to meet environmental standards, rigidities in collective marketing, and so on. A moratorium decreed by the provincial government on increases in pork production from 2002 to 2005 also stalled the rapid growth that the industry had experienced for more than a decade and stymied numerous investment projects.

Links of interest

Media Release:
Already heavily subsidized – The Quebec pork industry needs a major overhaul

In the last few months, serious setbacks afflicting Quebec’s pork industry have been making headlines: the closing of slaughterhouses and processing plants, layoffs, and financial losses. A number of causes have been used to explain this crisis, in particular the rise of the Canadian dollar, industry cycles, high sickness levels, a lack of competitiveness among slaughterhouses, added costs to meet environmental standards, rigidities in collective marketing, and so on. A moratorium decreed by the provincial government on increases in pork production from 2002 to 2005 also stalled the rapid growth that the industry had experienced for more than a decade and stymied numerous investment projects.


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