May 1, 2008

Canada's hog culling programme halfway to target

Canadian hog farmers have responded enthusiastically to a government programme to reduce the country's breeding herd to help cut losses and lift prices, the Canadian Pork Council said on Wednesday (April 30, 2008).

The programme, launched on April 14, aims to pay pork producers CAN$50 million (US$49.5 million) to reduce their breeding herd by 10 percent, or 150,000 animals.

The governemnt programme buys sows from farmers at much higher prices than what the market would have offered. 

Hog farmers, facing record-high feed costs amid oversupply in the market, have already submitted enough applications for the cull breeding swine programme to cover more than half the target amount.

The rapid response is a clear indication of the financial stress and market pressures Canadian pork producers have been struggling with, said Clare Schlegel, the group's president.

To date, two-thirds of the eligible animals were previously marketed, which the council said was proof producers were trying to adjust to market conditions on their own.

Earlier, there were worries that farmers may not respnd well to the programme.

Hog numbers in Canada have fallen by more than 1.73 million in the space of a year, from 14.73 million in April 2007 to 13 million in April 2008, the sharpest decline in thirty years.