September 21, 2009
Canada swine production to shrink at its lowest
Canada's pig herd may shrink to its lowest level in a decade as farmers' quit viewed as suffering its worst-ever financial crisis, reports state.
The number of pigs taken to abattoir will jump by more than 700,000 to 21.4 million head, as farmers turn to slaughter in face of losses expected at up to C$55 (US$51.37) an animal this year, according to the US Department of Agriculture.
At 11.5 million head, Canada's pig herd will end this year 22 percent smaller than at its peak in 2005, and at its smallest since at least 1998, the earliest herd figure readily available to Agrimoney.com.
Canada's government has introduced a series of measures, the latest of which is C$92 programme to encourage the least-viable producers to quit an industry whose decline analysts have traced initially to 2006, when a clamour for mining resources sent the Canadian dollar soaring.
High feed costs, as grain and oilseed prices soared, and the global recession have further depressed the sector.
Live exports have also been damaged by US country-of-origin labelling regulations, which have discouraged American meat groups from importing Canadian hogs for processing.
Hardest hit was Manitoba's industry due to its level of production of weanlings normally exported to US feeding operations, according to reports.
Live exports are expected to slump 34 percent this year to 6.20 animals, the lowest for 7 years.
US$1 = C$1.07 (Sep 21)
