Pork export suspension shouldn’t hurt MB producers: experts

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This article was published 18/08/2020 (1594 days ago), so information in it may no longer be current.

While Maple Leaf Foods Inc. says it has temporarily suspended pork exports to China after a few dozen workers at one of its plants tested positive for COVID-19, a national livestock and meat market analyst says the move won’t affect Manitoba hog producers.

The Mississauga, Ont.-based company said in a statement late Tuesday it continues to have rigorous safety measures at the Brandon, Man., plant to prevent workplace transmission, and the plant continues to operate.

It notes public health officials have said there is no sign the coronavirus was spread in the workplace.

The company says it voluntarily suspended its pork exports to China after the Chinese government adopted new protocols that require Canadian processors who report a positive COVID-19 case to do so.

But Kevin Grier, an Ontario-based livestock and meat market analyst, said while the move likely causes some grief and quick movements by the Maple Leaf employees in charge of finding markets for the company’s pork products, hog producers in Manitoba won’t face any hits.

“I don’t see it being much of an impact on the industry or the processors,” Grier said on Wednesday. “They will find another market. They will find it – they have to.

“I don’t want to belittle it – China is our No. 1 customer now… but as for an impact on Manitoba farms, the plant is going to keep running and the price is based on U.S. hog prices.”

But the new protocols set by China has Manitoba Pork’s general manager, Andrew Dickson, scratching his head.

“We don’t understand this because they have a shortage of pork,” Dickson said.

“They lost half of their pigs from swine fever. We don’t quite understand how they are coping because of their diet. Very few countries export pork and Canada is one of them.”

Dickson said the exports will be suspended until the outbreak of COVID-19 with Maple Leaf workers ends.

“The challenge we have is public health officials say it is not happening at the plant,” he said. “They are out talking to the families. They are encouraging people to follow proper health measures. You can’t have one person sick in bed and another from the same household go out — everyone has to isolate.

“Some wonder why they’re not closing the plant, but why would they close the plant? They are not getting sick there.”

RBC Dominion Securities analyst Irene Nattel says in a note to clients that the news “is a slight negative” for Maple Leaf.

She says the pork originally intended for export to China can likely be sold domestically or exported elsewhere — though at lower margins — and that price forecasts already assume some coronavirus-related disruptions.

Maple Leaf says it is seeing short-term increases in absenteeism, but believes this is a short-term situation rather than a material financial event.

CEO Michael McCain says the company is confident in its promise to provide customers with safe food.

“But we respect China’s new import protocols for Canadian products and are working co-operatively with Canadian and Chinese authorities to resume exports quickly.”

— with files from The Canadian Press