Canadian dollar value seen to impact hog profits

Informa Economics said the value of the Canadian dollar will be a key factor influencing the profitability of Canadian pork producers in the coming months.

Herd liquidation throughout North America and around the world has strengthened live hog prices and feed costs have fallen improving profitability but the strong Canadian dollar has hurt Canadian producers.

Informa Economics vice-president Dave Reimann said that while a strong dollar reduces feed costs, it also reduces the competitiveness of Canadian pork on the export market.

Earlier this month, the country's cattle and swine herds are forecast to continue on a downward trend with the ongoing increased strength of the Canadian dollar dampening export potential, according to a USDA attache report.