Russia’s year long ban on Canadian food imports is making pork producers in the province nervous.
SaskPork says market prices took a drop when the news hit. They’re down about $5 per hog.
If that trend were to continue, it would mean a $10-million loss for producers in Saskatchewan over the next year.
Russia has already presented several trade disruptions in the past, but SaskPork says a 12 month sanction means an even more uncertain future.
“The product will move to other markets. The question is, can we do it at the same price? That’s the challenge,” said Florian Possberg, SaskPork Chairman. “If suddenly your number four export destination is no longer available, how will it affect the price for that product? Plus, will the increased supply on the marketplace suppress the price of all the markets?”
As many as 1,000 containers of Canadian Pork are already bound for Russia. The hope is they can be redirected to other markets.
Meanwhile, the Saskatchewan Manufacturing Council is asking the Federal Government to consider special support for exporters.
They’re suggesting a temporary emergency fund be set up as short-term relief. They’d also like to see the Federal Government support market diversification efforts.