December 6, 2007

Canadian traders: Up to 35 percent of hog industry in peril

Ontario pork spokeswoman Mary Jane Quinn said the pork industry is dealing with a crisis and could lose up to half its pig farmers if help does not come soon.

Pig farmers have been battling with a storm of falling hog prices, rising feed costs, a strong Canadian dollar and pig diseases.

The price farmers get for their produce has dropped to almost half the cost of raising the animals. Farmers like Woodslee's Ron Vandenberg said it costs him about US$152 to raise a pig but he is getting about a return of US$80 per pig.

Canadian Pork Council president Clare Schlegel said it is the worst scenario he has seen in his 28 years of farming.

The last time prices were this low was in 1998, but this time farmers have higher costs for fuel and feed. Farmers have been dealing with a disease called circovirus that is not harmful to humans but is costing farmers US$1 to US$2 per pig for vaccinations, Schlegel said.

Canada produces about 31 million hogs a year. More than half are exported mainly to the United States and Japan.

Beef farmers also have to deal with the strong Canadian dollar and higher feed costs, but one farmer said it may be worse for the pork industry because they cannot hold on to animals waiting for a better price. Pigs go to market at about 250 pounds.