My name is Eric Schwindt. I'm a pork producer from the Waterloo region in Ontario and a member of the board of Ontario Pork. I appreciate the opportunity to be here tonight to talk about the effect the closure of Vallée-Jonction will have on Ontario hog producers.
Ontario Pork is the voice of the province's pork farmers and a leader in the agriculture industry. Our mission is to foster a vibrant business environment for our producers. Led by producers, we're committed to sustainable growth in the pork sector, delivering government representation, research investment and industry improvements in areas including animal care and environmental sustainability, while growing the brand and reputation of producers and our product.
Our sector represents a farm-to-fork impact in 2022 of 997 producers marketing 5.9 million hogs with $1.35 billion GDP, $3.78 billion in economic output and almost 20,000 full-time jobs. Ontario pork is sought after for its high quality and is exported around the world, with Ontario pork producers being among the world leaders in animal care, food safety, quality and traceability.
In Ontario, we have a competitive advantage, including our land base, an abundant water supply, an efficient transportation network and a highly skilled labour force with the knowledge to produce pork in a sustainable and efficient manner. This strong infrastructure will be further enhanced by the opening of a new national research facility in Ontario, which will benefit pork producers and the pork sector across Canada.
Processing capacity remains a significant obstacle to our industry’s growth. Last year, our sector exported 2.7 million pigs outside of the province. Just three years ago, our sector was not experiencing processing plant challenges. COVID-19’s impact on the global supply chain and its effect on processors is now further worsened by the Olymel plant closure.
This impacts 25,000 market hogs per week that were going to Olymel from Ontario, a 23% loss of markets for our producers. There are also 5,000 Ontario feeder pigs per week that are being displaced. This results in lower prices, longer transport distances, trade issues and economic and environmental impacts.
On hog processing capacity, there is no more hog processing capacity in Ontario currently. We have to look for markets outside the province, including Manitoba and the U.S. In terms of transportation, the processing deficit means that animals must be transported further and longer with higher transport rates, and there are limits on the amount of time an animal can be on a truck before needing feed and water.
In terms of environmental impacts, it means more diesel fuel and greenhouse gas emissions from transporting these longer distances. This means an additional $25 per hog in transport costs to other jurisdictions. I was marketing 10,000 pigs per year to Olymel in the past. That's $250,000 a year net impact if I didn't make changes to my farm operation.
We support initiatives that would have additional processing capacity located closer to home. Domestic processing allows value-add to happen in Canada, resulting in more jobs and economic activity.
Ontario Pork is open to working together with government and industry to bring solutions to these capacity challenges and better balance processing capacity over the short and long term. We want to work with all parties. Despite these processing challenges today, we know there's an increasing worldwide demand for the pork we produce in Canada.
Thank you.