July 29, 2004

US Hog, Pig Imports From Canada In 2004 Up Nearly 32% From Year Ago

The volume of hogs and feeder pigs shipped into the U.S. from Canada as of mid-July this year was up nearly 32% from a year ago, and currently is on a pace to reach about 8.4 million head for the year.

The U.S. Department of Agriculture reported the 2003 total for hog and pig imports from Canada at 7.418 million head. If the 8.4 million head is achieved this year, it would represent a 13.2% increase from last year.

According to the USDA's weekly reports, imports have eased slightly from the very large numbers seen earlier in the year. However, they remain large enough to put the year-to-date weekly average at more than 164,400 head as of the week ended July 17, compared with about 125,000 for the same period in 2003.

The percent increase from a year ago on a weekly basis has narrowed significantly since the first of June. But that is due more to greatly expanded volume beginning in June last year rather than declining volume during that period this year.

On May 20, 2003, the U.S. banned imports of Canadian cattle and beef due to the discovery of a cow in Alberta with bovine spongiform encephalopathy, or mad-cow disease. Since most other of Canada's trading partners also banned beef imports and Canada's beef industry has relied heavily on its export business, there was an immediate surplus of beef there which resulted in sharply lower prices.

Canadian pork packers, unable to compete with the cheap beef, were forced to reduce their hog slaughters, and more hogs were shipped south into the U.S. for processing or finishing.

During the first 22 weeks of 2003, total hog and pig imports from Canada averaged about 119,000 head. For the remaining 30 weeks of the year, the weekly average ballooned to 158,000 head, an increase of about 39,000 head, or nearly 33%, from the first 22 weeks.

Hog and pig imports from Canada for the latest seven weeks as of the week ended July 17, averaged 154,735 head, compared with 167,566 head during the first 22 weeks of the year.