ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Canadian Hog Statistics - Fourth Quarter 2008

by 5m Editor
18 February 2009, at 12:00am

By Statistics Canada. At 12.4 million, there were over ten per cent fewer pigs in Canada on 1 January 2009 than one year previously, continuing a three-year downward trend.

Highlights

  • Canadian hog producers reported 12.4 million head as of 1 January this year, down 10.2 per cent from the previous year.
  • In the last decade, hog production has evolved toward complete market integration in North America.
  • Over the past two years, 47.6 per cent of the hogs produced in the Western Provinces were marketed to the United States; while in the Eastern Provinces, the proportion of hogs marketed to the US fell to 14.0 per cent.
  • The Country of Origin Labeling legislation (COOL) in the United States created an uncertain marketplace for Canadian producers. In the case of hogs, the Canadian government put a Cull Breeding Swine Program in place to help hog producers reduce the size of their herds.
  • Rising input costs, due in part to increased feed grain prices and market uncertainty, had an impact on Canadian producers and exerted downward pressure on profits.

Analysis

Livestock Statistics as of 1 January 2009

Farm inventories of cattle, hogs and sheep all declined between 1 January 2008 and 1 January 2009, reflecting factors such as market uncertainty and rising input costs.

Livestock inventories at 1 January
Cattle Hogs Sheep
thousands of head
2008 2009 2008 2009 2008 2009
Canada 13,895 13,180 13,810 12,400 825 808
Atlantic 272 270 256 161 30 30
Quebec 1,345 1,340 3,990 3,900 245 244
Ontario 1,884 1,705 3,652 3,104 230 215
Manitoba 1,355 1,280 2,810 2,680 62 61
Saskatchewan 2,870 2,650 1,180 810 88 82
Alberta 5,560 5,380 1,800 1,630 125 127
British Columbia 610 555 122 116 45 49
Note(s): Figures may not add up to totals because of rounding.

Hogs inventory still shrinking

Canadian hog producers reported 12.4 million head as of 1 January this year, down 10.2 per cent. Last year’s decline in overall hog numbers continued a three-year downward trend. The breeding herd alone, mainly sows and gilts, declined 7.1 per cent to 1.4 million head.

Over the last decade, hog production has evolved toward complete market integration in North America. American hog finishing operations took advantage of an ample local corn supply and fed it to weaners born from the breeding and farrowing operations in Canada. In addition, a shortage or a loss of slaughter capacity on one side of the border has been offset by sufficient capacity on the other side.

Major hog herd contraction since the fall 2007 has leveled off hog marketings in 2008, reaching 31 million hogs. Hog slaughter in Canada increased by 2.0 per cent, while exports decreased by 7.1 per cent.

Over the past two years, 47.6 per cent of the hogs produced in the Western Provinces were marketed to the United States. In 2007, Saskatchewan was left with very limited slaughter capacity as plants closed throughout the province. However, in the fall of 2008, one of the largest plants in Manitoba established a second shift for additional demand.

In the Eastern Provinces, the proportion of hogs marketed to the US fell to 14.0 per cent. This proportion varies greatly, ranging from 0.8 per cent in Québec, to 26.6 per cent in Ontario. However, with COOL impending legislation, uncertainties on export markets developed in all regions.


Hog Exports in 2008, down 6.0 per cent in the West and 10.9 per cent in the East

Hogs receipts and expenses

Lower prices drove down revenues for hogs sold for both domestic slaughter and export. Rising input costs, due in part to increased feed grain prices and market uncertainty, had an impact on producers and exerted downward pressure on profits.

As well, Country of Origin Labeling legislation (COOL) in the United States created an uncertain marketplace for Canadian producers. In the case of hogs, the Canadian government put a Cull Breeding Swine Program in place to help hog producers reduce the size of their herds.

Further Reading

- You can view the full report by clicking here.

February 2009