August 21, 2008

 

Canada's hog inventory drops from year ago

 

 

Canada's hog inventories as of July 1, 2008, totalled 12.985 million head, down from 14.690 million at the same time a year ago and lower than the 13.000 million during the quarter ended April 1, figures released by Statistics Canada on August 19 revealed.

 

The government agency said hog inventories in Canada have declined to levels not seen since 2000. One in five farmers have left the industry as soft slaughter prices and high feed costs continued to be prevalent in the hog sector.

 

Escalating feed costs along with hog prices 38 percent below the 2005 average has resulted in the number of hogs being down about 15 percent from its peak in July 2005, Stats Can said.

 

Facing low profit margins, farmers are leaving the industry, the agency said, noting that there were 19 percent fewer hog producers in the country compared to a year ago. Saskatchewan led the decline, dropping 30 percent while Alberta numbers were down 24 percent.

 

The financial pressure on hog producers can be highlighted using a calculation that divides the hog price by feed cost, the agency said. The higher the ratio, the better the situation is for hog producers. By April 2008, the Ontario hog-corn ratio was 9.1, which is well below 29.2 in 2005. Stats Can said this meant that with the market return for every 100 pounds of pork, hog producers can only buy 9.1 bushels of corn compared with 29.2 in 2005.

 

The domestic slaughter of hogs in Canada was up 1.4 percent compared to the year-ago level as some slaughter plants increased capacity by adding a second shift.

 

Stats Can said Canadian hog exports declined in the second quarter of 2008 to an estimated 2.2 million hogs, which marks the first quarterly decrease in more than a year.

Canada: Quarterly pigs on farm

-Figures in '000 head

                               
July 1, 2008 inventory
Inventory
Percent change
All Hogs and Pigs
12.925.00
Down 11.60
Breeding Stock
1,493.00
Down 4.60
Sows & Bred Gilts
1,462.400
Down  4.60
Boars, 6 months & over
30.60
Dn  6.70
All other pigs
11,492.00
Dn 12.40
under 20 kg
4,293.90
Dn  9.60
20-60 kg
3,612.10
Dn 13.20
over 60 kg
3,586.00
Dn 14.90
April 1, 2008 inventory
 
 
All Hogs and Pigs
13,000.00
Dn 11.70
Breeding Stock
1,503.30
Dn  4.30
Sows & Bred Gilts
1,472.30
Dn  4.30
Boars, 6 months & over
31.00
Dn  5.80
All other pigs
11,496.70
Dn 12.60
under 20 kg
4,299.60
Dn  9.50
20-60 kg
3,620.70
Dn 12.80
over 60 kg
3,576.40
Dn 16.00
January 1, 2008 inventory
 
 
All Hogs and Pigs
13,810.00
Dn  7.40
Breeding Stock
1,526.90
Dn  3.30
Sows & Bred Gilts
1,495.30
Dn  3.30
Boars, 6 months & over
31.60
Dn  5.10
All other pigs
12,283.10
Dn  7.80
under 20 kg
4,471.00
Dn  1.60
20-60 kg
3,951.90
Dn 12.80
over 60 kg
3,860.20
Dn  9.20
Source: Statistics Canada
 
 
 

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