October 30, 2009

Hog inventories on Saskatchewan farms declined 12 percent to 790,000 head at the end of the third quarter compared with the same period last year, according to Statistics Canada numbers released Thursday (Oct 29).

That's the biggest decline in Western Canada and greater than the national decrease in hog inventories of 7.3 percent to 11.8 million head, as of October 1.

The bulk of the reduction was in market hogs 20 kg and over, which decreased nearly 15 percent to 533,000 head in the third quarter, the largest decline in the country. Breeding sows declined nearly 20 percent to 91,000 head, while feeder hogs (under 20 kg) actually increased by three percent to 166,000 during the same 12-month period.

One industry group said the decline was expected, while another analyst said that more producers need to leave the financially troubled industry.

Mark Ferguson, manager of industry programme and policy analysis for Sask Pork, said the industry has been in serious decline since 2007.

Ferguson cited figures showing a steep decline in the number of pork producers in the province, with 420 producers in the third quarter, down from 500 in the third quarter of 2008, and a fraction of the 1,660 producers in 2002.

Ferguson said Saskatchewan producers have suffered through one of the worst hog cycles in recent memory, which has been exacerbated by the high Canadian dollar, low prices and a restricted US market for Canadian pork.

In any case, he said Saskatchewan pork producers have little impact on the industry, which is based on US market prices and cost of production, adding that federal programmes, which have provided incentives of US$150 per breeding sow for producers leaving the industry, have had a minimal effect on the industry.