Canada's hog production has shrunk sharply .
Canada's pig production has been declining for years. From 2005 to the present day, a reduction in the herd of around 25 % has been recorded. At the beginning of this development phase, it was primarily the strong Canadian dollar that severely restricted profitability in the competition for exports with its southern US neighbor. Canadian exporters lost market share in Asia. Subsequently, persistently high feed costs exacerbated the pressure to adapt. Finally, disputes in the cross-border live piglet and fattening pig business also narrowed the economic base. A non-negligible proportion of the decline in the herd has been offset by the increasing productivity of piglet output per sow.
The latest census of the Canadian livestock population has once again underlined the decline in the herd, but with a little hope that a further massive slump in pig production is not to be expected for the time being. The figures for 2013 are expected to remain largely constant. However, the sow herd is showing a slight downward trend, meaning that a slight decline in piglets and fattening pigs is expected again in 2014.
This will also affect US pig farmers, as some of the piglets cross the border and are fattened in US barns until they are ready for slaughter. The US slaughterhouses near the Canadian border will also be affected with lower capacity utilization. On the other hand, the label problem - pigs exclusively of US origin - is alleviated.
Much to the chagrin of the Americans, the Canadians are reducing their livestock counts to just twice a year, while the USDA is conducting a quarterly inventory. This makes it much more difficult to assess the market. However, it should be noted that efforts are also underway in the USA to reduce the time-consuming inventory work.
