April 7, 2008

 

Canada's Saskatchewan would not be affected by hog moratorium

 

 

The Manitoba moratorium on hog production expansion is expected to have little near-term effect in Saskatchewan, according to industry sources.

 

The moratorium, announced March 3, followed the release of the Manitoba Clean Environment Commission report on the environmental sustainability of the hog industry. The ban on hog barn expansion applies to the Red River Valley, the Interlake region and southeastern Manitoba.

 

Given the crisis currently facing the hog industry in Canada as a result of higher feed costs and lower hog prices, few Saskatchewan producers are thinking about expanding production at this time, said Brad Marceniuk, livestock economist with Saskatchewan Agriculture and Food.

 

"Farmers have lost so much money in the last two or three quarters that production growth is not the issue. The issue to sustain your production as it is," he said.

 

Harvey Wagner, manager of producer services for Sask Pork agrees.

 

Wagner said, however, in five to 10 years if there were to be expansion he would expect to see it happen in western Manitoba, where the moratorium does not apply, and eastern Saskatchewan.

 

The Maple Leaf processing plant in Brandon will be a draw for producers, he said, as it is ideal to farm close to a slaughter plant in order to reduce transportation costs.

 

"No one wants to produce too far away from a slaughter plant. We're struggling with that avenue because it costs a lot to ship a hog from Saskatoon to Brandon. Our producers were paying CAN$4.00 to $CAN5.00 per hog (when there was a plant) but with no plant we're paying at least CAN$9.00 to CAN$10.00 per hog."

 

Looking ahead, Wagner said there is no reason not to see more hog production in Saskatchewan.

 

"We don't have the same situations and conditions that are causing the concern in the moratorium areas in Manitoba. There is a lot of land here, we don't have major waterways, and we don't have the flood plains. It's just different geography. Also, a lot of land means that hog manure can be used as a good organic fertilizer. Hogs are a great fit here."