Subsidies announced for Canadian pork farmers will result in a flood of cheap pork imports, says New Zealand's pork industry.
The Canadian government will spend about $NZ100 million propping up viable producers and paying others to stop production for three years.
Stopping production could mean less pork on the international market, but it could be months before the full implications are known for farmers in New Zealand.
The Pork Industry Board says subsidised pork from the European Union that was dumped last year sharply deflated pork prices and sent almost 15% of New Zealand farmers out of business.
Charles Finny, a board member on Trade and Enterprise New Zealand, predicts the United States and the European Union will follow Canada's move to ensure their farmers stay competitive.
Canada has announced it will spend up to $NZ100 million to encourage hog farmers to cease production and is offering loans to help viable farms restructure.
The New Zealand Pork Industry Board says Canadian pork accounts for about 20% of pork consumed in the country.