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Lower Grain Costs Help Swine Producers Moderate Effects of the Rising Dollar

by 5m Editor
17 December 2003, at 12:00am

CANADA - Farm-Scape: Episode 1407. Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council and Sask Pork.

Manitoba Pork Council


Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

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Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork.

Farm-Scape, Episode 1407

Figures released by Manitoba Agriculture, Food and Rural Initiatives show lower grain costs helped cushion the effect of the rising dollar on swine producers for most of 2003.

Profitability profiles developed by the Market Analysis and Statistics Branch show swine producers who mix their own feed remained profitable until October of this year.

Branch Manager Janet Honey says lower grain costs helped offset the impact of the rising dollar.

"The farrow to finish sector did average positive returns. The finishing sector averaged positive returns but certainly a lot smaller than the farrow to finish.

The weanling sector averaged even lower returns. Having said that, all returns were positive up until October.

Prices have dropped since then so producers that could have been making money in the first ten months may not be making any money selling pigs right now.

Obviously the increase in the Canadian dollar this year has eaten into hog producers profits quite significantly.

On average for the year the dollar has increased by more than 12 percent but, in some periods compared to year earlier, the dollar has been up 20 percent.

When we were looking at the increases in hog prices in the second, third and fourth quarters of this year, we were looking at increases of 20 to 25 percent over year earlier levels.

That hasn't happened because the higher dollar has meant our prices have been that much lower so profits are a lot lower than they would have been had we had a 60 cent dollar".

Honey says, had the dollar remained at the same level as last year, prices would have been at least 20 percent higher in some months of 2003.

For Farmscape.Ca, I'm Bruce Cochrane.

5m Editor