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Results of First Hog Tender Released

by 5m Editor
10 November 2009, at 8:59am

CANADA - The first tender of the Hog Farm Transition Program (HFTP) was held Wednesday, 4 November, and the results have been officially approved by the Program Administrator and an independent third party scrutinizer.

In order for bids to be compared among all types of animals and facilities, a system to equitably compare bids was developed. Using this system, each total farm bid submitted was converted to a dollar per “animal unit equivalent” or AUE. Of the total 261 bids submitted, 74 bids were accepted before the $10 million allotted to this first tender was allocated. In fact a total of $10,546,919 will be issued to successful bidders under this tender, as a result of identical final bids.

The weighted average of the 74 successful bids was $765.52/AUE. Accepted bids ranged from a low of $300/AUE to a high of $997/AUE. Lowest bids were accepted first, followed by successively higher bids until the funds for that tender were exhausted.

The first tender saw inventory of 21997 sows, 44564 weaners to 30 kg and 59653 hogs from 31 kg to market weight taken out of production for the next three years.

The second tender for the Hog Farm Transition Program has been rescheduled from 18 November 2009 to 9 December 2009 at 2:00 p.m. EST. Producers that are not already registered are encouraged to submit their registration forms no later than 24 November, 2009 for this tender window. The change in timing will provide the program administrator sufficient time to evaluate forms, complete any follow-up required to ascertain eligibility and send out bid forms prior to the tender deadline.

The decision to extend the deadline for the second tender was made to ensure as many registered producers as possible can be approved to receive a bid package prior to the next tender deadline. Many of the registration forms submitted continue to require additional information, causing a significant backlog in the administrative approval process.

The $75 million Hog Farm Transition Program is funded by Agriculture and Agri-Food Canada and administered by the Canadian Pork Council.

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