Canadian hog inventories fall, could mean fewer exports to U.S.

By Janie Gabbett on 4/25/2008 for Meatingplace.com

Canadian inventory of all hogs and pigs on April 1 was down 12 percent from a year ago, according to a joint USDA/Statistics Canada report, further evidence the industry across the border is rapidly downsizing.

April 1 total Canadian inventory stood at 13.0 million head, down 12 percent from April 1, 2007 and down 14 percent from April 1, 2006. The breeding inventory, at 1.50 million head, was down 5 percent from last year and down 2 percent from last quarter. Market hog inventory, at 11.5 million head, was down 13 percent from last year and down 6 percent from last quarter. The pig crop, at 7.95 million head, was down 1 percent from 2007 and down 4 percent from 2006. Sows farrowed during this period totaled 809,000 head, down 2 percent from last year.

In February the Canadian government announced a cull program designed to reduce the hog breeding herd by 10 percent and reduce annual production by about 3 million pigs.

The new Canadian data indicates the pace of hog exports from Canada to the United States should slow down going forward, according to analysts Steve Meyer and Len Steiner in their Daily Livestock Report. Canada has increased its live hog exports to the United States by nearly 30 percent over the past year as a strong Canadian dollar and other factors have made it more expensive to feed them to slaughter in Canada.

The new data put combined U.S. and Canadian inventory during March 2008 at 78.9 million head, up 3 percent from a year ago and up 5 percent from March, 2006. The breeding inventory, at 7.64 million head, was down less than 1 percent from a year ago and from last quarter. Market hog inventory, at 71.3 million head, was up 3 percent from last year but down 2 percent from last quarter. The pig crop, at 36.0 million head, was up 5 percent from 2007 and up 6 percent from 2006. Sows farrowed during this period totaled 3.86 million head, up 4 percent from last year.