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The Saskatchewan agriculture sector has long ago developed from a self-sustaining system to a complex industry producing excessive quantities of specialized products. No longer does a farmer sell his crop to just his neighbors and friends. Livestock products are now sold and traded as commodities on a national and international level in large quantities.
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Saskatchewan currently produces more livestock products than it consumes. For livestock production to continue to be a stable and profitable operation, additional markets in which commodities can be sold must be established. The United States is the largest importer of Western Canadian live and processed animal products. However, the need is still present to sell commodities to other markets. The sale of livestock products to those countries such as China and Japan which have a limited land base for production is one such alternative market. |
Trade barriers often exist between countries and even between our own provinces that restrict the availability of livestock products. This regulation of availability and quantity produced is managed by marketing agencies. These agencies maintain product pricing so that livestock production remains a viable industry. In Canada, provincial and federal government regulation controls the availability of products for the dairy, and poultry industries. Other marketing agencies are in place to accumulate large quantities of product so that they can be sold internationally at higher prices than producers would receive if they marketed their own product. Marketing agencies are not the best choice for all aspects of business, however, they have been somewhat successful in maintaining the livestock industry in Saskatchewan.
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