Canadian Pork Levies for Producers and Imports

Summary#

The Canadian Pork Promotion-Research Levies Order: SOR/2021-217 sets out fees (levies) that must be paid to the Canadian Pork Promotion-Research Agency on hogs sold across provinces and on hogs or pork products imported into Canada. The order was registered on October 8, 2021 and the main levy rules in sections 4 and 12 stop applying on June 30, 2022.

What it does#

• Establishes levies for hogs sold in interprovincial trade. For most provinces the levy is a fixed amount per hog:
  • Ontario: $0.95 per hog
  • Nova Scotia: $2.00 per hog
  • New Brunswick: $1.00 per hog
  • Manitoba: $0.80 per hog
  • British Columbia: $1.00 per hog
  • Prince Edward Island: $1.23 per hog
  • Saskatchewan: $0.85 per hog
  • Alberta: $1.00 per hog
• Quebec uses a weight-based rate for interprovincial sales and for hogs produced in Quebec but processed elsewhere: $1.274 per hundred kilogram dressed weight.
• If hogs are produced in one province but processed in another, the producer pays the levy for the province of origin.
• Requires purchasers or processors to deduct and remit levies to the Agency through a provincial collector. If they fail to do so, the seller or producer may have to pay instead.
• Sets an import levy:
  • Imported live hogs: $0.80 per hog
  • Imported pork products: levy is calculated by multiplying a tariff-based rate by the weight (a formula A × B explained in the order and detailed tariff-item rates are listed in Schedule 2).
• Payment and paperwork rules:
  • Import levies must be paid within 21 days of the invoice date.
  • Purchasers/processors must provide documents showing purchase price and levy amounts.
  • Records must be kept for seven years and be available on request.
• The Agency must review the order when it reviews its promotion–research plan. Sections 4 and 12 end on June 30, 2022.

Who's affected#

• Hog producers who sell animals across provincial borders. Producers in Quebec are affected differently because the levy is weight-based.
• Sellers, purchasers, dealers and processors involved in interprovincial sales or processing of hogs.
• Importers of live hogs and imported pork products.
• Provincial collectors and marketing boards that act as the Agency’s agents to collect levies (for example, Ontario Pork Producers’ Marketing Board, Les Éleveurs de porcs du Québec, Manitoba Pork Council). If the Agency appoints another collector for a province, that body would also be involved.
• It is unclear from the order whether downstream retail prices or consumer costs will change directly; that depends on how businesses pass on the levy.

Why it matters#

• The levies fund promotion and research activities carried out by the Canadian Pork Promotion-Research Agency. That can affect marketing, research projects, and programs aimed at the pork sector.
• For producers, sellers, processors and importers the order creates new or clarified costs and paperwork: levies to pay, invoices to issue or receive, and records to keep for seven years.
• The Quebec weight-based charge is a practical difference: producers and buyers there must track kilograms rather than just head count.
• The order is temporary in its levy sections (ending June 30, 2022), so affected parties and observers should watch for any follow-up rules or extensions.