February 17, 2010

Canadian hog inventory shows decrease

 

Canada's hog inventories as of January 1 totalled 11.63 million head, down from 12.18 million at the same time a year ago.

Canada's current hog herd is slightly lower than the 11.81 million during the quarter ended October 1, 2009, Statistics Canada said.

The government agency said Canada's hog inventory decline was linked to the drop in the country's breeding herd. Since January 2009, there has been a 4.3% decrease in the breeding herd, mainly sows and gilts. The inventory of sows is estimated at 1.3 million head.

The government agency said sows expected to farrow in Canada during the first and second quarters of 2010 are down 4.5% and 3.2% respectively from the same periods during the year prior.

During 2009, total hog exports amounted to 6.4 million head, down 31.9% from 2008.

Slaughter levels in Canada have been increasing since 2007, but are still below the peak of 22.9 million head reached in 2004. In 2009, slaughter capacity in Canada reached 21.8 million head.

In 2009, the number of hog farms in Canada continued to decline to 7,360. At the same time, the average number of hogs per operations increased from 1,482-1,580 at January 1. Despite the decline in hog inventory, the pace of decline is at a slower rate than in the previous two years, Statistics Canada said.

On August 15, the government of Canada announced a restructuring programme for hog producers. It includes the creation of a loan loss reserve fund for hog producers, a marketing fund and a transition programme to help producers leave the industry. The Hog Farm Transition Programme, similar to the Cull Swine Programme in 2008, facilitates the reduction of Canada's swine herd.