Pork Council joins agrifood calls for exemption of natural gas and propane from carbon tax

  • National Newswatch

Hog barns need to be heated for animal well being, Bergmann says.   Ottawa—The Canadian Pork Council (CPC) has added its voice to calls on the federal government from the agrifood sector to broaden the exemption of fuels used in food production from the carbon tax. To efficiently produce pork and manage the welfare of their animals, pork producers must use natural gas or propane to heat their barns, said CPC Chair Rick Bergmann. While that kind of use isn't spared the carbon tax, “There are no other practical alternatives. “It is projected that by 2022, fuel costs will increase by 150 per cent and cost pork producers $10 million per year. The carbon tax costs faced by producers cannot be recouped from the marketplace as we face daily competition from American pork imports.” Bergmann sent copies of a study by Manitoba Pork, which backs up the CPC's argument for the exemption across the country. A wide array of agrifood groups have been making similar presentations to the government during the past year. Bills introduced in the Commons and the Senate recently could help them make their case. The bills from Philip Lawrence, Conservative MP Northumberland –Peterborough South, and Senator Diane Griffin “recognize agriculture's unique position and reflect pork producers' needs,” Bergmann said. “Producers need an exemption from the price of carbon to enable them to continue producing food year-round and remain competitive in the global marketplace.” The Manitoba Pork study “provides information on the use of heating fuels in hog production and the economic consequences of the fuel charge. This analysis is applicable to producers across Canada.” The current law excludes from the definition of farm machinery eligible for the carbon tax exemption both automobiles and property used to heat or cool a building or structure that houses people, equipment or animals. The greenhouse vegetable industry does receive partial relief from the carbon tax on propane or natural gas used to heat its buildings and the pork sector should qualify for a full exemption based on the reasons applied to the greenhouse sector, the Manitoba study said. “Just as is the case for greenhouses, heating of commercial barns is integral to hog production through the winter months across Canada. While the cost of energy for greenhouses is a higher percentage of operating costs, to treat these commercial food production systems differently, or to say fuel to operate farm machinery is exempt but not barn heating fuel, is simply inconsistent. “The scientific literature generally identifies the minimum acceptable temperatures for hog production as 25° C degrees for piglets, 12° C for lactating sows and 16° C for grower/finisher pigs,” the study said. “When temperatures fall below these minimums, animals experience cold stress and must increase their metabolic rate to supply more body heat. This increases dietary requirements, particularly for energy. In extreme, prolonged cold, hogs can experience hypothermia and death.” Heating hog barns is not optional in Canada and, as with greenhouses, the only viable fuel options are natural gas and propane. The choice of gas vs. propane depends on the extent of rural gas distribution infrastructure). Modern barns are well insulated to conserve heat.” The study says heating costs are a major factor in a thin margin, highly volatile commodity business such as pork. They come “on top of many other capital and operating cost disadvantages that the Canadian industry faces relative to their U.S. competitors, including much higher costs of construction and maintenance (in part due to winter-related building standards and operating conditions), labour, feed and manure management requirements. “With respect to renewable energy projects such as methane capture and bio-digestion to convert manure to biogas, Canada's geography and cold climate makes these technologies difficult to apply.” Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.