Why Ontario Pork Marketing?
Ontario Pork Marketing provides innovative, cost-effective marketing services for Ontario pork producers, specializing in sales, logistics, settlement, and risk management. We provide a competitive advantage to producers through efficient, comprehensive marketing services and strong relationships with processors and industry stakeholders. The marketing division works closely with processor procurement staff, export brokers, commodity brokers, transporters and assemblers to support members.
A Forward Pricing Contract is a firm agreement between the producer and the Marketing Division for delivery/receipt of an agreed number of hogs in a specific month to be priced at a contract price with a basis adjustment to be applied on date of delivery.
The “Standard” Forward Pricing program incorporates Chicago Mercantile Exchange (CME) Lean Hog futures prices and Canadian Dollar futures prices to build an Ontario constructed futures price. Producers settle Standard Forward Pricing contracts when their hogs are delivered to market.
The “Lean Hog Only” Forward Pricing program allows producers to lift contracts at any time and do not involve a currency hedge. Target Pricing agreements allow producers to make a forward contract as soon as prices meet or exceed a selected level.
On each business day that trading is open, forward contracts can be made by contacting the Marketing Division from 10:30 AM - 1:20 PM at 1-800-862-9001.
Standard Forward Pricing Detailer
Lean Hog Only Detailer
Credit Risk Assessment
Although we do not guarantee payment, Ontario Pork Marketing offers security to minimize the risk of loss to producers by maintaining strict credit terms with packing plants to ensure that payments are received regularly and on time. In many cases we have financial instruments such as performance bonds or letters of credit; in other cases, we require prepayment or extremely prompt payment.
Pool & Pool Plus Programs
The Pool and Pool Plus programs offer competitive base prices, flexible grading grids, and a premium for Canadian Quality Assurance/ Canadian Pork Excellence (CQA/CPE) validated hogs. Standard freight rates are used FOB the yard of designation which means the trucking charges are less than shipping animals on contracts where no freight is paid.
Producers enrolled in the Pool Plus program will receive the average value of hogs sold through the Marketing Division's Block Sale Agreements to various packers. The Block Sale Agreements have allowed Producers to Collectively Market their hogs and guarantee delivery of specific quantities of hogs to packers for fixed periods of time.
Hogs sold under the Pool program are sold as spot loads of excess supply that are not under Contract or sold through the Pool Plus program. These hogs will receive the average value of the hogs sold through the Marketing Division's into a mixture of processors at current spot pricing.
Producers who ship through Ontario Pork Marketing have access to numerous automated tools in the OINK website. These tools include:
- Historical statements
- Grading data
- Summary data by week, month, or year
- Forward Pricing contract tracking and history
- Health data
- Contract renewal dates
- Alternate grid reports
- Historic pricing data and industry statistics
Contact the Ontario Pork Marketing Division:
1 (800) 873-0363 (General Enquiries & Logisitics)
1 (800) 862-9001 (Forward Pricing)