Canadian Hog Industry Shrinks

OTTAWA - Apr 24/08 - SNS -- Canadian hog inventories are declining as the number of individuals involved in the sector declines in the face of unusually low prices and rising costs, according to the latest Statistics Canada data for the sector.

"Data show that the hog industry in Canada is in a state of transition, as the feed costs and slaughter prices, which have been prevalent in the hog market for some time, have squeezed profit margins to the limit," Statistics Canada asserts.

As of April 1, 2008, Canada had almost one-fifth fewer (-19.3%) hog farmers than in April 2007. Of those still in business, a number had closed their barns or reduced their breeding herd, or both.

Farmers had an estimated 13.0 million hogs on their farms on April 1, down 1.7 million, or 11.7%, from the same date in 2007. This was the largest year-over-year drop in three decades, and the fifth consecutive quarterly decline in total hog inventories.

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