The Canadian Pork Council has asked the Canadian government to pump $800 million into the country's pork industry. The key component of the program is a loan to pork producers of $30 for each market hog to be repaid over 10-15 years. The National Pork Producers Council is concerned about the plan and believes it would have a lethal impact on U.S. pork producers who already have lost an average of more than $21 per hog since October 2007.
The proposal would artificially prop up Canadian pork production and according to Iowa State University economist Dermot Hayes U.S. live hog prices would be approximately 7% lower than otherwise would have been the case.
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