April 25, 2008

Canada's hog inventory shrinks 11.6 percent from year-ago levels

Canada's hog inventories as of April 1 totaled 13 million head, down from 14.729 million at the same time a year ago and the 13.810 million during the quarter ended Jan. 1, figures released by Statistics Canada Thursday (April 24, 2008) showed.

Producers leaving the industry in the wake of high feed costs and soft slaughter prices was the principal reason behind the decline, the agency said.

The hog industry in Canada was said to be in a state of transition, as feed costs and slaughter prices squeezed profit margins to the limit, the agency said.

One in five pig farmers have quit the business in the past year while a number have closed their barns or reduced their breeding herd, or both.

Hog producers are also shifting mainly to farrowing operations from the more traditional farrow-finish operations. This meant more exports of weaners mostly destined for the US market. 

Hog exports rose 26 percent in the first three months of 2008 to 2.9 million, compared to the same period a year ago.

Meanwhile, domestic slaughter of hogs in Canada dropped 1.1 percent during the same period.

On Feb. 25, the Canadian government announced a cull breeding swine program aimed at reducing the size of the breeding herd. Statistics Canada said further reductions in the hog breeding herd are expected.