October 29, 2009

Canada's hog inventories as of Oct. 1 totalled 11.820 million heads, down from 12.745 million at the same time a year ago and 12.065 million in the quarter ended July 1, figures released Wednesday (October 28) by Statistics Canada showed.

 

The government agency said Canada's hog inventory decline was linked to low market prices, the restructuring of farms and farm closures.

 

The number of sows reported on farms as of Oct. 1 totalled 1.3 million head, which was down 4.4 percent from the same time a year ago.

 

Statistics Canada said that while the US is still experiencing efficiency gains in hog production, Canada's investment in hog output has remained stagnant. Combined Canada and US breeding-herd inventories continued their decline by 3.5 percent last year and another 3.4 percent this year, the agency said, noting that the US breeding herd accounts for more than 80.0 percent of the North American breeding stock.

 

The number of sows anticipated to farrow is expected to continue declining, based on information from the industry, Statistics Canada said. Sows expected to farrow in Canada during the fourth quarter this year and the first quarter of 2010 are down 6.4 percent and 3.6 percent respectively from the same period a year ago, the agency said.

 

Many hog producers reported in the past survey cycle uncertainty concerning their farrowing intentions. Several producers reported that they are waiting to see if they can make use of the recently announced federal program to quit production.

 

On Aug. 15, the Canada government announced a restructuring programme for hog producers. It includes the creation of a loan-loss reserve fund for hog producers, a marketing fund and a transition program to help producers leave the industry.

 

The domestic slaughter of hogs increased 5.9 percent during the third quarter as slaughter capacity improved in some regions of Canada.

 

Hog producers exported an estimated 1.6 million hogs during the third quarter, the agency said. Year-to-date exports total 5.0 million head and are down 31.5 percent from the same period in 2008.