WESTERN PRODUCER — Prairie pork producers have yet to see significant immediate impacts from the latest round of tariffs, but industry representatives warn that uncertainty surrounding trade relations could affect investment and operating costs in the months ahead.
The concerns come as Canada’s retaliatory tariffs on selected U.S. products take effect, potentially increasing costs for equipment, construction materials and certain feed ingredients used in hog operations.
“It really is too early to give you a really good estimate of what the impact is going to be,” said Cam Dahl, general manager of Manitoba Pork.
The situation remains volatile, Dahl said, making it difficult for producers and industry officials to anticipate what markets and costs will look like in the coming months.
“If someone is going to tell you that they know what the landscape is going to look like next week, they’re either uninformed or not telling you the truth,” he said.
For Manitoba producers, the uncertainty comes at a time when the province’s pork industry has opportunities for growth, including investment in both farms and processing facilities.
However, the unpredictability surrounding trade and political conditions is making some of those investment decisions more difficult.
“That uncertainty costs,” Dahl said.
Feed represents the largest expense for hog producers, making any potential increase in feed costs a significant concern for farm profitability.
Dahl said Manitoba Pork has not yet seen a clear tariff-related impact on feed costs, but the organization is monitoring the situation.
Transportation expenses, including the cost of moving feed to farms and shipping hogs and pork products, are another consideration.
Diesel prices and the costs associated with transporting agricultural inputs and products can affect producers’ bottom lines, he said.
Construction materials and equipment are also being watched, particularly as producers consider building new barns or expanding existing operations.
While the eventual impact of the tariffs remains unclear, Dahl said the uncertainty itself is already affecting investment decisions.
Manitoba Pork supported the Manitoba government’s Aug. 28 announcement regarding changes to the Manitoba Agricultural Services Corp., which he said could help address some of the risks associated with accessing capital.
Rather than expecting a return to the trade environment of five years ago, Dahl said the industry needs greater predictability moving forward.
“I think a return to the environment that we had five years ago … is not something that is realistic,” he said.
“It’s a return or moving forward in an environment that is more stable and predictable.”
In Saskatchewan, the immediate impact of the tariffs has also been limited, according to Mark Ferguson, general manager of Sask Pork.
The primary concern for Saskatchewan producers comes from Canada’s retaliatory tariffs rather than the U.S. measures themselves, Ferguson said.
Equipment costs
The tariffs could affect equipment and materials used in barn construction, maintenance and renovations, including products containing steel and aluminum.
The measures do not appear to affect many of the primary feed inputs used by producers, Ferguson said.
However, he expects the potential effects on equipment costs to become more significant over time.
Items such as penning, bins, ventilation systems and pumps could become more expensive when they are subject to tariffs, he said.
The impact will likely be more pronounced for producers building new barns or undertaking major renovations than for those operating existing facilities without significant capital expenditures.
Some maintenance work can be postponed, Ferguson said, but other repairs cannot wait.
“If your manure pump goes, it’s something you’re going to have to replace right away,” he said.
In those circumstances, producers may have limited options beyond purchasing replacement equipment, potentially from a U.S. manufacturer.
Equipment supply
Canadian companies could expand their manufacturing capacity if tariffs remain in place, potentially creating additional domestic sources for barn equipment, Ferguson said.
Suppliers in Europe and Asia could also provide alternatives, although developing new relationships and arranging overseas shipments present potential challenges.
Shipping times are an important consideration for producers who need equipment quickly.
Saskatchewan producers have traditionally benefited from access to U.S. equipment manufacturers, which offer products at competitive prices, Ferguson said.
“Their industry is five or six times larger than Canada’s, so they produce a lot more of this equipment, and they’re good at it, and they produce it at a good price.”
While producers may prefer to continue purchasing from North American suppliers, they will ultimately need to consider the cost and availability of the equipment they require, Ferguson said.
“Producers will shift to wherever they can get this equipment at the lowest cost if they need it.”
Alberta Pork
Alberta Pork declined an interview request for this story, saying it is not providing comments to local media on the new tariffs at this time.
It did publish information on its website outlining potential effects of Canada’s retaliatory tariffs on the province’s pork producers.
Its assessment identifies possible cost increases involving barn construction, equipment, transportation and certain feed ingredients.
According to the organization’s preliminary review, some U.S.-origin structural steel, penning components and other fabricated metal products could face tariffs of up to 50 per cent.
Certain feed ingredients, including whey, molasses, casein and specialty proteins, are also identified as potentially subject to 50 per cent tariffs.
Other products, including certain heating and ventilation equipment, are listed at lower rates.
Alberta Pork’s assessment notes that common feed inputs such as corn, wheat, barley, soybean meal and canola meal do not appear to be flagged in the current list.
According to the organization, a tariff’s potential impact comes down to how the product is classified for customs purpose, and where it actually originated, rather than who sold it. This means a producer buying from a Canadian supplier isn’t automatically in the clear; if the goods themselves trace back to the U.S., the tariff can still apply.
Alberta Pork advises that before signing off on an order for a construction project or major equipment purchase, producers should get the supplier to confirm the product’s origin and its 10-digit Canadian tariff classification.
The organization said it plans to gather additional information from producers through a survey in its Weekly Report and will continue monitoring developments with other pork organizations and governments.
About the author
Reporter
Miranda Leybourne is a Glacier FarmMedia reporter based in Neepawa, Manitoba with eight years of journalism experience, specializing in agricultural reporting. Born in northern Ontario and raised in northern Manitoba, she brings a deep, personal understanding of rural life to her storytelling.
A graduate of Assiniboine College’s media production program, Miranda began her journalism career in 2007 as the agriculture reporter at 730 CKDM in Dauphin. After taking time off to raise her two children, she returned to the newsroom once they were in full-time elementary school. From June 2022 to May 2024, she covered the ag sector for the Brandon Sun before joining Glacier FarmMedia. Miranda has a strong interest in organic and regenerative agriculture and is passionate about reporting on sustainable farming practices. You can reach Miranda at mleybourne@farmmedia.com.
Read more from Miranda Leybourne
Related Coverage
Prairies would feel U.S. diesel export ban
