August 21, 2009

 

Canadian July hog inventory declines slightly from yearago

 

 

Canada's hog inventories as of July 1, 2009, totalled 12.105 million head, down from 12.980 million at the same time a year ago, figures released by Statistics Canada revealed on Thursday (Aug 20).

 

However, hog inventory was up slightly from the 11.885 million during the quarter ended April 1, 2009, compared to a year ago.

 

The government agency said Canada's hog inventories have been decreasing since 2006, following a period of investments in more efficient barns in the late 1980s and early years of 2000.

 

According to Statistics Canada, the country's breeding herd, mainly sows and gilts, declined 4.6 percent to almost 1.4 million head during the last year. Farrowing intentions for the third quarter of 2009 were also down 4.1 percent from the same period last year and is expected to be down 5.5 percent for the fourth quarter.

 

Prior to the onset of this decline, hog producers in Canada had tolerated tough times in the industry while waiting for markets to improve. By 2006, some hog producers began leaving the industry, reflecting a number of factors. These include high feed costs, low commodity prices, a strong Canadian dollar and the economic downturn.

 

Despite hog inventories decreasing since 2006, hog slaughter remains strong in 2009 as more weanling pigs were fed to slaughter weight in Canada rather than being exported to US finishing operations. Domestic slaughter capacity increased, mainly on the Canadian prairies.

 

During the first two quarters of 2009, hog producers nationally exported an estimated 3.3 million hogs, down 34.6 percent from the same period last year.

 

The bulk of the hog exports are market hogs shipped to slaughter. Weanling hogs are being shipped to feeders.

 

Statistics Canada said that in the first and second quarters, hogs exported for slaughter were down 58.5 percent and weanling hog exports were down 27.6 percent from the same period a year ago. Manitoba, the main exporting province, had a 32.4-percent decrease in exports in the first and second quarters of 2009.