The Canadian Pork Council is looking at implementing a hog hedging program.
On Friday, Agriculture and Agri-food Canada announced they would be giving up to $160,530 to the pork council to conduct a study on the feasibility of hog hedging.
The study would look at the risks and impacts of hog market price fluctuations on producers, and explore the potential of developing a hog hedging program that would reduce the risk.
"What we're doing is reviewing risk management on the farm and a way to mitigate that," says Canadian Pork Council chair, Rick Bergmann. "Having this program in place would allow for producers to reduce their risk by selecting a price that they're comfortable with in marketing their product, and also the ability to keep cash flow on the farm in times where it's really needed."