Proposed Canadian Pork Promotion and Research Agency

Summary#

This Canada Gazette notice (published March 7, 2020) sets out a proposal to create the Canadian Pork Promotion and Research Agency under the Farm Products Agencies Act. If approved, the agency would be allowed to raise money through national levies (including on imports) to pay for promotion and research for the pork sector.

What it does#

• Creates a national promotion and research body called the Canadian Pork Promotion and Research Agency with a 12‑member board:
  • 9 provincial producer representatives (one from each participating province),
  • 1 representative of importers, and
  • 2 members‑at‑large.
• Gives the agency authority to fund and run national promotion and research programs on hogs and pork products.
• Allows the agency to ask the Farm Products Council of Canada to approve a levy order to collect national levies on domestic production and on imported hogs and pork products.
• Requires the agency to submit an annual budget and business plan for approval and to review its plan at least every 5 years.
• Establishes Ottawa as the agency’s head office and rules for managing levy funds (import levies must be kept in a separate account).
• This item is a proposal. The public was invited to make representations within 30 days of publication.

Who's affected#

• Pork producers across Canada (especially in the major producing provinces). The sector is large: farm cash receipts for hogs were $4.1 billion in 2018.
• Importers of hogs and pork products — the agency would be able to seek a levy on imports and one importer seat is on the board.
• Processors, retailers and other parts of the pork value chain could be affected because they may be asked to take part in board seats, programs, or levy collection arrangements.
• Small producers and small importers: the government notes most producers qualify as small businesses (fewer than 100 employees or under $5 million in revenue) and that the agency may consider thresholds or special rules to limit the burden on very small importers.

Why it matters#

• A single national body would pool money for promotion and research. That can fund bigger campaigns and coordinated research than fragmented provincial efforts.
• The agency is presented as a tool to help Canadian pork sell better at home and abroad, deal with animal‑health risks (for example, preparedness for outbreaks such as African swine fever), and respond to consumer concerns about production practices.
• There could be small cost increases passed along to buyers if an import levy is approved. The notice gave an example: an import levy of $0.75 per head could raise average Canadian pork costs by about 6¢ per person per year (based on 22 kg annual per capita consumption). The agency may design exemptions or thresholds to reduce the impact on small importers.
• This is a proposal, not final law. The levy itself would need separate approval by the Farm Products Council of Canada before any charges are collected.