February 8, 2006

Canadian beef and pork production to increase slightly

In USDA's latest report on Canadian livestock and products, the Canadian cattle herd is expected to stabilise during 2006. This is a contrast to the huge rise in numbers since Canada reported its first case of mad cow disease in May 2003. The resulting loss of international markets was compounded with inadequate slaughter capacity in Canada. This led to record cattle inventories in 2004 and 2005. Factors that will lead to the stabilisation of Canadian cattle numbers includes renewed access to US live markets and the expansion of Canadian slaughter capacity.

The report predicted Canadian beef and veal production in 2006 to increase about 1.4 percent to a total of 1.5 million tonnes. It is estimated that production in 2005 reached 1.47 million tonnes.

According to USDA, total Canadian beef exports for 2006 are predicted to be about the same or slightly lower than last year. The re-opening of the Japanese market to Canadian beef may not yield significant increases in quantities. Furthermore, exports of Canadian beef to Mexico have also slowed.

The report also said that live hog exports to the US are expected to rise by about 6 percent to 8.7 million head in 2006. Exports to the US in 2005 reached an estimated 8.2 million head.

Canadian pork production in 2006 is expected to increase by a modest 1 percent. Meanwhile, Canadian pork imports in 2006 are predicted to increase sharply, with increased imports from the US and Denmark. In the Jan-Nov period of 2005, pork imports from the US rose by almost 30 percent from a year earlier. Increased pork exports to Japan, Mexico and Russia will cause total pork exports in 2006 to rise 3 percent over the previous year.

For the full USDA report, click here.