November 5, 2009

Canada's hog market is projected to return to profitability toward mid-2010, as momentum gains toward the end of the year, according to Bruce Cochrane from Informa Economics.

 

Canadian hog producers have faced prolonged losses resulting from factors such as excess hog supply, increased input costs, the rising value of the Canadian dollar and the effects of US Country of Origin Labelling (COOL). 

 

Informa Economics vice-president Dave Reimann said a little more stability was seen over the last couple of months as producers have cut production but some recovery was seen in feed prices due to the rising value of the Canadian dollar neutralising some of the recovery.

 

Reimann said the hog market is still under a lot of pressure and most analysts involved with the sector in his company are still looking for some recovery and some return to profitability.