'Pain' for Ontario pork producers as China halts meat exports, prof says

China's decision to cut off meat exports from Canada could compromise Ontario pork producers' ability to enter 'a huge potential market,' according to a food economist with the University of Guelph.

"This is a big deal — it's gonna hurt," said Mike von Massow, who serves as an associate professor in the university's department of food, agricultural and resource economics. He noted China is Canada's third-largest customer for pork after the U.S. and Japan.

The meat ban was initiated after Chinese customs inspectors said they detected residue from a restricted feed additive in a batch of Canadian pork products, according to a statement issued Tuesday from the Chinese Embassy in Ottawa. 

The export certificate attached to that shipment has since been confirmed to be a fake, according to the Canadian Food Inspection Agency. The RCMP has been called in to investigate the origins of the shipment.

Until now, Canada has exported a large proportion of its domestic pork production to China. According to the Canadian Press, Canada's shipments of pork to China were worth about $500 million Cdn last year.

Canadian producers have been hoping to ship even more pork to China, as the country continues to grapple with an outbreak of African swine fever. Chinese farmers have been forced to cull huge numbers of pigs to stop the spread of disease.

"The objective was for Canada to increase our exports of meat to China, [but] this sort of cutting off now will compromise our ability to establish those relationships and build that growth," von Massow said.

"So it's not just short-term pain, it has the potential to be long-term pain as we lose the opportunity to grow in that market."

New markets hard to come by

Von Massow added China is a unique market for pork because it accepts certain products, such as pigs' feet, that aren't as popular in other countries.

If Canada can no longer sell those products to China, von Massow said he isn't sure producers would be able to find other buyers.

"So the value of the whole carcass goes down ... and again that puts downward pressure on Canadian prices," he said.

In the short term, von Massow said he expects it will be difficult for Canada to find new markets for its pork. But with ongoing, high demand for pork in China — and a long-held trading relationship based on price, quality and ease of transportation between the two countries — he said he hopes the ban will end sooner rather than later.

"It's in everybody's best interest."