Farm Credit Canada (FCC) is offering support to hog sector customers in Ontario, Quebec and the Atlantic provinces facing financial hardship as a result of the current crisis in the hog industry.
Hog industry partners have faced numerous challenges in recent years, including the pandemic, labour shortages, increased input costs and higher interest rates, packing facility closures, etc. These adverse conditions have impacted the financial performance of hog farms.
“Agriculture and food is the only industry we serve, so we have a deep understanding of the challenges that come with the business,” said Manon Duguay, FCC vice-president of operations for Quebec and Atlantic, in announcing the customer support.
“Hog producers may face a cash shortfall in addition to personal hardship and stress,” Duguay said. “We stand by our customers over the long term, helping them pursue opportunities and overcome challenges. Producers need our support and as a leader in financing to Canadian farmers, we have a responsibility to step up and help.”
“We’re monitoring the situation closely and have been in touch with our hog customers over the past several months. This announcement reinforces what we have already put in place. We stand ready to assist them with any short-term financial challenges they may face as a result of this accumulation of unfavourable production conditions.”
Demand for red meat is expected to be strong in the coming months, according to FCC’s Cattle and Hog Outlook Update, as barbecue season approaches in Canada.
Pork has been increasingly more affordable compared to other major proteins over the past few months, which could drive increased consumption.
“The affordability of pork means that producers who are well positioned in the domestic market could benefit from increased demand in the coming year,” explains J.P. Gervais, FCC’s chief economist. “The challenges in the hog sector won’t be resolved quickly, especially in the East with less slaughter capacity and reductions in the Quebec hog herds. While 2023 will be difficult, there is positivity for 2024 and beyond with the new future profit-sharing options between Quebec processors and producers.”
Customer support is a central part of FCC’s business. The federal Crown corporation will consider additional short-term credit options, deferral of principal payments and/or other loan payment schedule amendments to reduce financial pressures on hog producers. FCC will also offer flexibility, and even a combination of options based on the individual needs of its customers, since each farm financial situation is unique.
Hog sector customers who are experiencing cash flow pressures are encouraged to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 as soon as possible to discuss their individual situation and options.
Although FCC customer support is being offered in specific locations, Canada’s leading agriculture lender offers flexibility to all customers through challenging business cycles and unpredictable circumstances on a case-by-case basis.
FCC is Canada’s leading agriculture and food lender, dedicated to the industry that feeds the world. FCC employees are committed to the long-standing success of those who produce and process Canadian food by providing flexible financing, AgExpert business management software, information and knowledge. FCC provides a complement of expertise and services designed to support the complex and evolving needs of food businesses. As a financial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.
