Now that we're the world's pork powerhouse, provinces
and processors alike foresee a bonanza in more factory
farms. Hold your breath, Canada
By
Konrad Yakabuski
Report on Business magazine
September 2002
In the middle of Jean-Guy Hamelin's pig
barn, a hairy-and frankly, scary-looking-boar squirms
in his stall. He's the only male in the place, but
he's not there to impregnate Hamelin's 320 sows; they're
artificially inseminated. Instead, the 300-kg nameless
boar is paraded every now and then past the cramped
stalls where the sows spend their lives, to "stimulate" their
hormonal impulses, aiding fertility.
It's not as big as
they come, but the Hamelin operation, southwest of
Montreal, is a factory farm in style if
not scope. The days of pigs rolling freely in the
mud outdoors are long gone; today's hogs are raised
with
assembly-line precision in big industrial-looking
aluminum barns like Hamelin's. His provocative boar
is the face
of a transformation, at once industrial and rural,
that's sending tremors across Canada-even, in fact,
within the sprawling boundaries of the nation's capital.
The big hog farms are promoted by both the meat-processing
industry and provincial governments keen on economic
growth, but they're not so effusive about specific
projects. They know that everywhere a factory hog
farm seeks to locate, it seems to find people who aren't
persuaded that big means better.
on a breezy evening
in July, friends and neighbours gathered for a party
at the Lafleur family's dairy
farm on Ottawa's eastern fringe. The 300 guests met
to mark an increasingly rare milestone in Canadian
agriculture: the 100th anniversary of a family farm.
The evening's festivities offered only a temporary
respite from the worries that have dogged the Lafleurs
in recent months. Their farm is threatened, although
not by the usual menaces-financial difficulties,
urban sprawl, or kids disinclined toward agriculture.
The
threat is another farm.
The Lafleurs, who keep about
50 milking cows and grow corn, hay and alfalfa on 120
hectares near the village
of Sarsfield, were shaken to learn a year ago that
a neighbouring property had been sold to one of Canada's
biggest hog producers. Les Meuneries Côté-Paquette
Inc. applied to the City of Ottawa (which swallowed
this area in a 2001 municipal amalgamation) to convert
the 280-hectare site into a mega-hog farm with 2,800
sows. An average sow gives birth to about two dozen
piglets a year, putting the likely output of the operation
at about 65,000 pigs annually.
Fearing the stench, a
decline in property values and potential ground-water
contamination from the torrent
of liquid manure generated by a big pig operation,
the Lafleurs and hundreds of other residents of this
mostly francophone corner of Ontario banded together
to fight the proposal-under the language-leaping acronym
PORC, for Protect Our Rural Communities. "We're
not against pig farms. We're against big pig farms," says
Marc Lafleur, 34, who is the fourth generation to work
the family farm. "Our quality of life is threatened."
A year into their battle, the Lafleurs have discovered
that fighting factory farms is not for the skittish.
It takes determination, money and, perhaps most of
all, political connections. Across Canada, the debate
over mega-hog farms has pitted small, independent farmers
against their industrial-sized cousins. The big farms,
which are often owned by or allied with large corporations
such as Toronto-based Maple Leaf Foods Inc. or Côté-Paquette,
have benefited from the tacit, if not outright, support
of governments in Ontario, Manitoba and Alberta, which
are all aggressively challenging Quebec's title as
Canada's top pork-producing province.
Canada raised
26.2 million pigs in 2001-70% more than it did a
decade ago. Apart from the sheer economic
growth, provincial governments are happy about that
trend because factory pig farms, unlike many types
of agriculture, don't require government subsidies
to survive. And because factory-farm hogs are raised
exclusively indoors, they don't depend on co-operation
from Canada's unpredictable weather. Finally, foolproof
agriculture.
Except for this: A farm of 3,000 pigs can
produce as much waste as a town of 10,000 people.
Phosphorus, along with nitrogen and ammonia, is one
of the main
constituents of pig manure. It spurs algae and weed
growth in water, often killing fish. Untreated liquid
hog manure-the solid waste is watered down to make
it easier to spray on fields-also contains countless
pathogens, such as the infamous E. coli bacteria.
When the manure is spread, much of the nutrient content
is displaced into the air.
The smell is not the worst
result. Vaporized hog manure is increasingly linked
to respiratory problems in humans.
And when the amount of liquid manure exceeds the
soil's ability to absorb it, its nutrients and pathogens
seep
into the ground water or run off into lakes and rivers,
potentially contaminating drinking water.
No surprise,
then, that factory farms have given rise to a rural
variant of the NIMBY syndrome. For farmers
and other rural residents, factory farms are to agriculture
what Wal-Mart is to retailing. Corporate-owned or
-associated factory farms are rapidly displacing small,
independent
farms across North America. Agriculture, the last
bastion of the old economy, has become a business like
any
other, where a few big players rule the roost. In
the United States, the hog industry is virtually synonymous
with Virginia's Smithfield Foods Inc., which has
swallowed
many of its main competitors in recent years. In
Canada, where Maple Leaf dominates the pork and poultry
industries
(and where Smithfield owns Maple Leaf's rival, the
venerable Schneider Corp.), a similar story is unfolding.
So the Lafleurs' fight is about more than preserving
the fresh smell of their air or the potability of
their water supply. They are fighting to preserve a
way of
life.
A couple of years ago, a leading U.S. agricultural
magazine, Successful Farming, decided to include Canada
in its annual ranking of Pork Powerhouses. The reason
was simple. "While the big boys down here sit
on their hands, stymied by a myriad of new laws and
regulations," the magazine's editors noted, "the
Canadians are dreaming big."
Pig production has
exploded in Canada not because Canadians are eating
more ham. Per-capita pork consumption
in Canada has been flat for years. Almost half of
all shipments are now sold outside Canada-as live pigs,
fresh meat or processed products-thrusting this country
into first place among pork-exporting countries,
from
third in 1997. Less than a generation ago, Canada
was barely self-sufficient in pigs. By last year, the
value
of exports had ballooned to $2.8 billion, from only
$750 million a decade ago. (Adding domestic shipments
brings the total to $5.6 billion for last year. And
when retail prices are considered, the Canadian pork
industry pegs its total value at $11.5 billion.)
More
than half of the exports go to the U.S.; Japan is the
destination for about a quarter of exports. "There
is no one involved in pork in Canada who is not exporting,
because that is where the growth is," says Martin
Rice, executive director of the Canadian Pork Council,
the umbrella body for hog marketing.
Producers have
expanded here just as environmental scrutiny and
public disfavour stunt their competitors
in the U.S. Huge operators like Smithfield have been
forced to answer in court to the charges of well-funded
environmental groups, Robert Kennedy Jr.'s Waterkeeper
Alliance foremost among them. Public pressure has
forced states such as Iowa-which produces 26 million
hogs
a year, as many as all of Canada-to impose tougher
regulations on operators. North Carolina has slapped
a moratorium on new pig farms (it now has 3,600)
until 2004. The federal Environmental Protection Agency
this
year released draft regulations for factory farms
that, if implemented, are expected to cost the industry
about
$1 billion (U.S.) a year.
So, less-burdened Canadian
pork producers can count on a lucrative export market
for years to come. Industry
players here see their expansion strictly as a good-news
economic story. For them, Canada's growing importance
in hog production stems not from relaxed environmental
scrutiny, but from a simple comparative advantage:
cheap grain for feed, abundant farmland to house
pig barns and spread manure, and a cold climate that
kills
the bacteria and viruses that can attack pigs and
lower yields.
One thing that is not growing in Canada's pork
industry is the number of farms. A generation ago,
in 1976,
there were 63,602 farms raising pigs in Canada. By
1996, the number had fallen to 21,000. Last year,
there were only 12,405 such farms, while their average
size
had climbed to 995 pigs from 523 in 1996 (and a mere
91 in 1976). Half of the pigs produced in Canada
last year were raised on the approximately 950 farms
that
boast more than 2,600 hogs.
With the growth of the business,
though, thousands of Canadian farmers have lost a measure
of independence.
Most now work under contract for one of the big processors,
raising pigs to specifications-for example, feeding
the animals only barley to yield a premium product
for the Japanese market. Increasingly, processors own
part of the farm and provide their partner-farmers
with working capital, feed, antibiotics and other supplies
and services. Maple Leaf and Quality Meat Packers Ltd.
dominate in most of the country; Côté-Paquette
and F. Ménard Inc. are the leaders in Quebec.
Through its Elite Swine Inc. subsidiary, Maple Leaf
has a direct ownership stake (typically 40%) in some
300 farms, with more than 90,000 sows, while Ménard
and Côté-Paquette each have more than
30,000 sows. In Ontario, producer-processor partnerships
account for more than 70% of hog production.
Maple Leaf
calls the system it pioneered "vertical
co-ordination"-a variation of the vertical integration
model of the U.S. industry, where processors own farms
outright. Contract pigs are usually fed with grain
purchased from the company's Shur-Gain/Landmark arm.
Maple Leaf's executive in charge of the system insists
there's a big difference from the U.S. model. "Vertical
integration uses a lot of capital and doesn't engage
partners as partners," says Michael Detlefsen,
executive vice-president of vertical co-ordination. "If
[farmers] own something, they're highly motivated to
make it work."
The shift to contract-based production
has allowed processors to focus more on premium meats
and customer-dictated
products. Finding such niche markets is increasingly
necessary in a fiercely competitive global industry.
Pig prices, although cyclical, have been essentially
flat for a quarter of a century-in real terms, a
fraction of what they used to be. Yet production costs
have
increased substantially with the introduction of
new technologies, sophisticated feed and government-imposed
health standards. The result is paper-thin margins.
And
intense pressure on farms everywhere to achieve economies
of scale. Charlemagne Hamelin raised a family
of six on a farm of fewer than 20 sows in the 1960s.
Today, the farm that his sons Jean-Guy and Sylvain
now run has 16 times as many sows in one barn and holds
more than 2,000 hogs in adjacent buildings at any given
time. In all, their "farrow-to-finish" farm
produces about 7,500 pigs a year. The expansion began
in 1995, when the Hamelin brothers borrowed $800,000
from Quebec's farm finance corporation to more than
double the size of their operation. It was the only
way, Jean-Guy Hamelin says, to remain competitive.
Still, Hamelin isn't a bit nostalgic for the old days. "When
my father ran the farm, he got the same price for a
hog that we get today. Yet, we can [afford to] sell
at the same price because we're more efficient. My
father got 12, maybe 13 piglets out of a sow each year.
We get two dozen," Jean-Guy, 36, points out. "People
have got to stop looking at farming as anything other
than a business. Farms are huge in the States and France.
We've got to follow the trends in the market."
In Quebec, those trends have been set in L'Ange-Gardien.
The Eastern Townships village of 1,400 is to pigs what
Newcastle is to coal. Together, Côté-Paquette
and F. Ménard Inc., both headquartered here,
raise more than a million pigs a year. For a weekend
each July, the village celebrates its pork-producing
prowess at Le Festival country du porc. This year's
event drew a record crowd of 8,000 people, many of
whom came expressly for the greased-pig competition.
Contestants had to trap a well-oiled, and inevitably
unco-operative, 100-kg hog with their bare hands.
The
party mood of the festival belied the prevailing anger
of Bernard Paquette, one-half of Côté-Paquette
and founder of the festival. In June, the Quebec government
extended a moratorium on new or expanding hog farms
until at least 2004 in most of the province. The land
south of the St. Lawrence River between Montreal and
Quebec City is saturated with hog manure. It simply
cannot absorb any more of the stuff; the hog waste
has contaminated surface and ground waters with dangerous
levels of phosphorus. Thousands of citizens protested
at the National Assembly this spring. Even the farm
lobby, widely considered one of the most effective
interest groups in any jurisdiction, has not been able
to overcome the tide of public opinion regarding pigs. "It's
not funny," complains Paquette. "We've become
criminals [in the public eye] just because we want
to make a living."
This is why Côté-Paquette
became Marc Lafleur's prospective new neighbour.
Normally, Lafleur
feels a sense of solidarity with fellow farmers. He
spent a good part of this past summer
organizing a drive to send hay from Eastern Ontario
farms to feed drought-stricken western cattle. But
the news of Côté-Paquette's intentions
made him boil. "The manager of the caisse populaire
in Sarsfield told us the value of our properties would
fall 25% to 50% if Côté-Paquette got approval," Lafleur
says. Rural residents who have seen factory farms set
up near them in Ontario and Alberta have won property-tax
cuts of between 10% and 50% in the past few years by
complaining to provincial assessment boards that the
value of their land and quality of life have been adversely
affected.
The Lafleurs' 50-odd Holsteins, individually
named-Natasha, Carla-roam freely as they graze from
dawn to dusk in
the family's field. The pigs raised in a modern factory
farm never see the light of day. Most big hog producers
categorically refuse visitors, citing "bio-security" concerns.
Jean-Guy
Hamelin makes a rare exception for me-but only after
I take a shower on-site and don the coveralls
and manure-laden gum rubbers that he provides. Inside
the barn, dozens of sows, weighing up to 200 kg each,
fill individual metal stalls, so narrow the animals
are only able to lie or stand. Feed falls through
a tube in each stall; cloudy water flows past in a
trough
just shy of each hog's snout.
It's hot and humid outside,
more stifling still inside the barn-even though it's
equipped with a modern ventilation
system. The pigs look lethargic. Every now and then,
one sits up to defecate. The waste is meant to fall
through metal slats in the floor, from where it is
flushed to an outdoor holding lagoon. But that only
happens when the stalls are hosed down. In the meantime,
the acrid stench of feces and urine overpowers every
other smell in the barn.
In an adjacent room in the
barn, the atmosphere is almost festive. The squeals
of dozens of piglets, only
days old, fill the air. The pink babies are as playful
as puppies. Each litter is separated from a sow by
metal bars, which allow the piglets to nurse but
prevent the mother from rolling over and crushing her
babies.
Within days of their birth, the piglets are castrated
and their tails are cut short. Both procedures occur
without anesthesia. By their 18th day, the piglets
are usually weaned and transferred to another barn
to grow. Shortly afterward, their mother is impregnated
again, and the cycle resumes.
Hamelin's sows look like
inmates of a dungeon and appear about as happy. Not
so, he objects: "The
well-being of [our] animals is reflected in their productivity.
Would you be better off if you were left outside, unprotected
from the elements, or inside, warm and dry?" In
groups, pigs become aggressive, Hamelin explains; the
weakest among them would be bullied into starvation.
Still,
animal welfare concerns prompted the European Union
to impose a ban on sow stalls by 2013. No such
ban is being considered in North America.
Compared to
a 3,000-pig farm, the smell from Lafleur's dairy
cows is barely noticeable. It's not only a question
of volume. Far from being sprayed in the air, cow
manure
is mixed with hay, which absorbs its smell and nutrients
while composting.
Lafleur has the luxury of farming
on a modest scale. Dairy farms in Canada remain shielded
from global competition
by a production quota system administered by the
provinces. The number of quotas is limited, and the
price of milk
regulated, effectively preventing new competitors
from entering the market. The system also puts a premium
price on the milk quota. If the Lafleurs were to
sell
their quota today, it would fetch well over $1 million.
No
Canadian pig farmer enjoys quota protection. Hence
the emphasis on size, and, for Lafleur, the bane of
his prospective neighbour. Lafleur's biggest concern
isn't smell, but his family's drinking water. The Côté-Paquette
site is home to 11 unused wells that Lafleur believes
are inadequately capped, meaning that liquid hog manure
could penetrate the water table.
Last fall, Lafleur
and other leaders of PORC took to lobbying city council
to reject the Côté-Paquette
application. Luckily, they had an ally in their local
councillor, Phil McNeely, a spunky retired engineer. "Anywhere
these large operations have been, the odours are terrible.
And I've seen how they police water quality in this
province," McNeely says, recalling the Walkerton
tragedy of 2000. Within days of hearing of the Côté-Paquette
application, McNeely persuaded council to slap a one-year
moratorium on factory farms in his ward. The delay
was meant to give the city time to devise a policy
on a phenomenon it had never before confronted. In
the absence of provincial regulations, dozens of Ontario
municipalities have lately passed bylaws that, among
other things, limit the size of pig farms, prohibit
their location near residential communities, and require
big farms to submit a "nutrient management plan" on
how they will deal with manure. And McNeely aimed to
follow suit.
the nutrient management plan for Jean-Guy
Hamelin's farm dictates that 206 hectares of cropland
are needed
to accommodate the manure generated by his pigs. Hamelin's
property has only about 120 hectares; he has had to
find neighbouring farmers willing to take the excess
manure. On this day, the spray trucks, known as "honey
tankers," are working flat out to spread the waste
on the Hamelin acreage (which he rents out, being fully
engaged with pigs) and the neighbours'. The trucks
return periodically to one of Hamelin's cement, open-air
lagoons to refill.
The stench is even more overwhelming
than inside the barns. But the farmers who use the
manure are spared
the cost of chemical fertilizers for most of the
season.
Canada's
pig industry insists it is investing millions of dollars
annually to develop environmentally sustainable
ways to deal with the manure problem-from breeding
genetically modified pigs that produce cleaner waste
to concentrating manure for disposal. "We've tried
to be very forward-looking and innovative on environmental
issues," says Maple Leaf's Detlefsen, whose company
is sponsoring a bio-diesel pilot project with the Montreal
Urban Community Transit Commission that converts hog
waste into fuel. "We believe in responsible and
sustainable development. We engage in best practices.
We monitor all the farms that are part of our system.
We tend to meet or exceed provincial standards."
Still,
manure-minimizing technologies are a couple of years
away from market, and those provincial standards,
where they exist, form a crazy quilt of obligations,
regulations and voluntary guidelines. Where provincial
governments do intervene to regulate factory farms,
it is not clear the environment comes out the winner
(see map, page 68). In Alberta, the Klein government
stripped municipalities of their power to regulate
factory pig farms after several jurisdictions bowed
to pressure from citizen groups to stop new projects.
Under legislation that took effect in January, Klein
instead handed factory-farm regulation to the province's
newly created Natural Resources Conservation Board.
The
government said the move was made to ensure equal standards
apply across the province; critics say it
was to stop municipalities from banning the farms that
Klein sees as good for the provincial economy. "You
can make the law sound good, but I tell you, this is
the way the [hog] industry operates," Robert Kennedy
Jr. of the Waterkeeper Alliance told an Alberta audience
in March. "This is the first thing they do when
they go into a new area. They make sure local people
cannot object.This is one-stop shopping for polluters."
Ontario followed in June with passage of its own Nutrient
Management Act. Regulations won't be unveiled until
this fall at the earliest. But provincial norms, as
in Alberta, will supercede any municipal regulations,
leading critics to charge that Ontario has torn a page
out of Klein's playbook. During the race to succeed
Mike Harris as Tory leader and premier, Ernie Eves
said some municipalities were "offside" in
passing bylaws regarding nutrient management that "may
go beyond what we want to do."
For Lafleur, McNeely and their allies, Ontario's move
upended their attempts to have Ottawa City Council
pass its own law. In mid-July, city staff withdrew
a draft bylaw that would have forced the Quebec company
to scale down its operation. Instead, staff proposed
a nutrient management "strategy" that would
allow the Côté-Paquette proposal to proceed
unchanged. "The pork producers' lobby has won
the day with city staff," McNeely sighed. "Suddenly,
staff has decided a hog farm is good for Sarsfield."
But McNeely wasn't finished. Within days, he found
a way to hamstring both city agricultural staff and
the provincial government. In late July, city council
endorsed McNeely's idea that Ottawa's medical officer
of health, Dr. Robert Cushman, should look into the
potential impact of factory farms before the Côté-Paquette
operation is allowed to proceed. "We're concerned
about the location of intensive livestock operations
within the city and so close to residential communities," says
Cushman. "This is very different from a small
dairy farm. This is an industrial operation." Cushman
has until early next year to make recommendations to
council. McNeely and Lafleur, of course, hope Cushman's
report calls for a buffer zone between factory farms
and residences. That would give council a way to defy
the province's stand that it is the sole authority
on factory farms. "After all," McNeely opines, "the
provincial government can't tell the medical officer
of health what to do."
But Lafleur isn't waiting idly for Cushman to report.
Through its $10 membership fee, PORC has amassed a
kitty to mount a legal challenge to force the city
to intervene. "My family and I are ready to go
to court if we have to," Lafleur insists. "This
could be the challenge of our second century."
HOG
HOT SPOTS
-
Taiwan Sugar Corp.'s plan for a 130,000-pigs-per-year
farm in the County of Forty Mile was rejected after
residents protested. The company is appealing.
-
Maple
Leaf Foods subsidiary Elite Swine has proposed
a 3,000-sow barn and four 2,500-pig nursery barns
near
Lomond. The municipality said no; the province's
new
Natural Resources Conservation Board overruled
it. Residents want a review.
-
Naturalists are objecting
to a 4,000-pig farm proposed near Beaverhill Lake,
one of Alberta's best-known waterfowl
areas.
-
Maple Leaf Foods spent $150 million in 1999
to build Canada's largest pork slaughterhouse in
Brandon. The
company intends to double capacity to 90,000hogs
a week by adding a second shift.
-
Dunnville residents
are trying to stop a 3,000-sow farm proposed by
Elite Swine. The site is two kilometres
from Lake Erie and one kilometre from a provincial
park.
-
In March, Judge E.R. Browne revoked a permit
granted by the township of Huron-Kinloss for a
chicken and
hog factory farm, deeming it too close to a residential
area. The township has appealed.
-
Neighbours are worried
about a proposed 9,000-pig weaner farm in Blandford-Blenheim
township. The farm
is owned by recent Dutch immigrants, some of whose
countrymen have relocated in Ontario after being
paid by their government to give up pig farming to
protect
the environment.
-
Côté-Paquette Inc. wants
to build a 2,800-sow farm on Ottawa's eastern fringe.
Residents
have formed PORC (Protect Our Rural Communities)
to fight the plan.
-
In June, Quebec Environment Minister
André Boisclair
slapped a moratoriumon pig farms in most of the
province until 2004. The ban will only be lifted
once farmers
have invested in new technology to dispose of manure
more safely, which will take at least two more
years to develop. The government has pledged $257
million
over three years to help with the transition.
-
Neighbours
are protesting a three-year-old, 10,000-pig farm
nearSte-Marie-de-Kent, owned by Metz Farms Ltd.
The protesters have staged sit-ins in several government
offices, prompting the province to subsidize a
$1.5-million plan to develop a new aeration system
for the farm.
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