By Bruce Cochrane
A Market Analyst with KG Market Analysis and Consulting says a recent reversal in declining Canadian pork consumption is extremely positive for Canada's pork industry.
Over the past 2 to 3 decades the volumes of pork eaten by Canadian consumers has declined.
Kevin Grier, a Market Analyst with KG Market Analysis and Consulting, says the fact that Canadians have demanded less pork over the past 20 to 30 years is one of the reasons the Canadian pork industry has become smaller.
Kevin Grier-KG Market Analysis and Consulting:
The negative side is that we've seen declines in consumption over the years.
The flip side though is in the last 5 or 6 years that we've eaten less but, overall, there's been some stability in terms of our consumption and in 2015 Canadians ate more pork and not only did we eat more pork in 2015 but we ate more pork at higher price levels and that's the definition of increasing demand.
It hasn't been often that I've been able to be positive about demand but I have been positive about demand in the last couple of years and I expect I will continue to be positive about domestic demand in the coming years.
Canadians export more pork than we consume.
We export 60 percent of our production so the domestic market comprises 40 percent.
We're quite unique in that regard.
We export more than we consume.
Never the less, the domestic market is our highest price market.
It's in many respects our most lucrative and important market.
There's no other single market that can come close to it.
Japan and the United States are also important but nothing compared to our own so the fact that we've got positive news to talk about domestically is very very good news.
Like I say declining demand in Canada is part of the reason why we have a smaller pork industry in Canada.
So the fact that it's improving is an argument for an expanding pork industry in Canada.
Grier says, in terms of the Canadian pork industry's role internationally and its ability to compete, the outlook is positive and it's going to continue to be positive from a global perspective.
Source: Farmscape