October 18, 2008

Canadian hog exports to US continue to decline

Canadian swine exports to the US have been declining on an on-year basis since April, and the fourth-quarter forecast will likely be lower than the same period last year.

The weekly average for Canadian hogs and pigs exported to the US in the first half of 2008 was slightly under 200,000 head, according to the USDA. In the 14 weeks since, the average had dropped to about 157,300 head.

This year, feeder pigs made up about 73 percent of imported Canadian hogs, therefore the full effect of the decline would not be felt in the marketplace for about five months - when the pigs would reach slaughter weight.

Some analysts said a sow culling programme in Canada earlier this year had reduced the breeding herd size, which has contributed to the decline in the number of pigs moving into the US. Imports also fell in recent weeks in advance of the implementation of the mandatory Country-of-Origin Labelling (COOL) legislation.