There is a spring in the hoofs of the Canadian hog industry these days, driven by higher prices, lower feed costs and more export opportunities.
“There really is optimism in the industry these days after some tough years,” Canadian Pork Council president Jean-Guy Vincent said after an Oct. 25 council meeting in Ottawa.
“I think there is a feeling that the future looks very good for the hog sector.”
A cautious note is that porcine epidemic diarrhea is spreading in the United States, and the Canadian industry is worried that it will eventually arrive north of the border to kill weanlings as is happening in the U.S.
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“There certainly are worries about the financial impact on our farms if this does make it into Canada,” said Vincent.
However, the broader picture, after years of bad financial news, is positive.
“More positive than I have seen for years.”
Part of it is that hog prices are increasing, and part of it is that grain prices have been falling, reducing hog sector costs.
As well, the government recently announced a trade deal with the European Union that promises up to $400 million a year in increased market access to the largest consumer base in the world.
“The trade deal with Europe really is important to us,” said Vincent.
“It will affect prices and maybe offset some of the negative impact from COOL (U.S country-of-origin labelling rules).”
CPC communications director Gary Stordy said delegates at the meeting were more optimistic than he has seen.
Access to the EU market could create a market for shoulder and ham cuts that are not as popular in North America.
“This meeting really had a positive feel to it,” said Stordy.
“Developments really have given the industry some optimism.”