A $33 million boost for pork producers
Pork producers will benefit from a second financial advance for 2022 of $33.2 million paid by the Financière agricole du Québec (FADQ).
This amount is allocated to enable producers to deal with the inflationary context and a selling price lower than the cost of production.
“The Farm Income Stabilization Insurance Program (ASRA) protects businesses against fluctuations in market prices and production costs […] This second payment is an additional influx of liquidity that should help the sector get through this difficult context,” said Ernest Desrosiers, President and CEO of La Financière agricole du Québec.
This amount is in addition to the first advance offered in June 2022 under ASRA.
The sums bring the net amount paid to hog producers for the 2022 insurance year to $65.3 million.
This means that this second amount of $33.2 million represents $41.66 per sow and $3.34 per 100 kilograms of pork.
Remember that in April 2022, the Éleveurs de porcs du Québec had to reach an agreement to sell their animals for $40 less per head, which had resulted in a 20% reduction in profits for producers.
This decision was due to major buyers like Olymel threatening to reduce their purchases due to market instability.
The second vice-president of Éleveurs de porcs du Québec, Louis-Philippe Roy, explained that with these prices, ends would be difficult to make and that there would be no profitability for Quebec producers for a much of 2022.