3 The Trusted Source for Canada’s Pork Producers Better Pork | December 2024 LETTER FROM THE EDITOR FCC ON POTENTIAL EFFECTS OF VCOOL FCC recently identified voluntary Country of Origin Labeling (vCOOL) as a trend in U.S. ag that could impact Canada in 2025. Starting Jan. 1, 2026, meat labelled as “Product of USA” must come solely from animals born and raised there. Presently, U.S. processors can label meat as domestic even if it’s sourced from Canadian animals that are raised or slaughtered in the U.S. This ruling marks another chapter in the two-decade debate over origin labelling for pork and beef products. Previously, mandatory Country of Origin Labeling (mCOOL) was repealed in 2015, paving the way for this current voluntary approach. In a late-October article, FCC said that “vCOOL seems less worrisome than mCOOL given the voluntary nature of the requirements. However, Canada will face difficulties exporting livestock to the U.S. For example, Canada sends about four million piglets (less than seven kilograms in weight and 21 days old) to the U.S. annually; so, while these hogs would spend most of their life in the U.S., they wouldn’t qualify for a ‘Product of USA’ label under vCOOL. “Industry sources are indicating that some processors could begin enforcing the rules by mid-2025. While we don’t expect this to be the end of livestock exports, the impacts could be significant. Basis levels (the difference between the cash price received and futures prices) for live cattle and hog exports are likely to widen and exports of processed meat products could face headwinds. “Hog producers could face greater pressures given the decline in domestic processing capacity and increased reliance on U.S. access for slaughter. “Quantifying the costs of vCOOL is challenging but the WTO ruled the impact of mCOOL (in terms of foregone revenue) was over $1 billion USD annually when it was in effect.” FCC economists Graeme Crosbie and Justin Shepherd point out our countries are highly integrated, so they expect some push from the U.S. pork industry for easier regulations. They also question whether U.S. consumers will want to pay higher prices for their pork products, as new labelling requirements will reroute trade flows and add costs. INSIGHT FROM THE INSIDE INSIGHT FROM THE INSIDE INSIGHT FROM THE INSIDE INSIGHT FROM THE INSIDE INSIGHT FROM THE INSIDE INSIGHT FROM THE INSIDE “Being a 700-sow farrow-to-finish operation producing RWA hogs, it's really important for us to be up to speed in areas like nutrition. The pork sector is always improving, whether that is through enhanced genetics, better feed conversion or fewer days to market. With hog prices being what they are, you must stay on the cutting edge of technology.” - Sam Hofer, Page 9 “If there is something that you can say with certainty reduces methane emissions, or keeps carbon in the manure, and is economical, I think this project can make a difference.” - Brad de Bekker, Page 13 “The uncertainty around labour can be tough. We tend to rely on foreign workers, and the government process is not swift in that regard. It would be nice to just pick up the phone and have a worker here the next day, but it doesn’t work that way.” - Allan Reavie, Page 19 Better Pork is published six times a year by AgMedia Inc. 1-888-248-4893 ext 281 Subscriptions@BetterFarming.com ISSN 1497-2271 (Printed) Canadian one-year subscriptions: $22 (six issues; includes $2.53 HST). Two-year: $40 (12 issues; includes $4.60 HST). Single-copy back issues are $12 (including $1.38 HST). U.S. subscriptions: $39.30 annually. International: $66. GST Registration #868959347RT0001 POSTMASTER: Send address changes to AgMedia Inc. 90 Woodlawn Road West, Guelph, ON N1H 1B2 Publications Mail Registration No. 1156 Publications Mail Agreement No. 40037298 Copyright © 2024 by AgMedia Inc. All rights reserved. Reproduction of any content without written permission of the publisher is strictly forbidden. Acceptance of advertising does not constitute endorsement of the advertiser, its products or services, nor do Better Pork, AgMedia or Farms.com endorse any advertiser claims. The publisher shall have no liability for the omission of any scheduled advertising. 1-888-248-4893 90 Woodlawn Road West Guelph, ON N1H 1B2 PUBLISHER & EDITORIAL DIRECTOR PAUL NOLAN ext 202 Paul.Nolan@Farms.com ASSISTANT TO THE PUBLISHER & EDITORIAL DIRECTOR LESLIE STEWART ext 265 Leslie.Stewart@Farms.com EDITORIAL TEAM MARY LOGGAN GEOFF GEDDES CONTRIBUTORS TO THIS EDITION MOE AGOSTINO ABHINESH GOPAL MATT JONES JACK KRONE JEANINE MOYER LILIAN SCHAER ADVERTISING TEAM GLENN RUEGG JENNY LONGSTREET DESIGN & PRODUCTION TEAM TANYA MYERS GREG MARLOW SHAUN CLARK ANDREA WILLIAMS www.BetterFarming.com We acknowledge the financial support of the Government of Canada. Cover: Reavie Family photo, Jodie Aldred photo
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