Canadian Hog Numbers Trend Lower

OTTAWA - Oct 28/08 - SNS -- Canadian hog numbers maintained their downward trend through the third quarter ending October 1, 2008, according to Statistics Canada.

At October 1, 2008, hog producers reported their inventories at 12.8 million, down 1.5% from the previous quarter. Hog inventories were down about 11% from October 1, 2007. Hog numbers began falling three years ago, as rising input costs for feed, coupled with declining hog commodity prices, cut into the profit margins for producers.

Structural changes, along with barn and farm closures have taken place in the hog industry, with almost 16% of hog producers leaving the industry since October 2007. The national breeding herd is down over 8% from October 1, 2007. Registrations from the Cull Breeding Swine Program indicate that 124,000 breeding animals have been taken out of the herd since November 1, 2007. Under this federal program, the registered barns must remain out of production for at least three years.

Hog exports continued their decline from the first quarter, while slaughter decreased slightly from the previous quarter.

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