SASKATOON – A tidal wave of change under way in the hog industry that has large-scale hog barns springing up throughout Western Canada and the United States is flooding into Saskatchewan.
Four large facilities, each capable of producing about 13,000 pigs per year, have opened this year and more are on the way.
The larger barns aren’t forcing change in the province’s pig market, but are a reaction to other changes, according to Marilyn Jonas of the provincially funded Pork Implementation Team.
High costs of production have been forcing smaller producers out of the hog industry for years.
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In 1984, Saskatchewan had 5,206 hog producers. In 1993, it had only 2,863. Most of those who quit the business were small producers slaughtering less than 100 pigs per year. Their numbers dropped to 1,757 from 3,887.
During the same time, large scale producers jumped to 55 from 10 in the province.
Florien Possberg knows all about costs. Possberg’s company Possberg Pork Farms is expanding into a large barn operation. Although he already had a successful pig farm, he needed to find investors for the expansion.
Spreads out costs
“Larger, more efficient barns provide greater returns for investors,” said Possberg.
Dennis Cote of Quadra Management Services, a company that has invested in several pig barns, said spreading out costs for feed and veterinarian bills over a large number of hogs brings down capital costs, giving higher profits.
As well, the disappearance of the Crow Benefit is cited as further incentive for large scale producers. With the loss of the rail transportation subsidy for grain, many farmers are looking to sell grain locally to save on shipping costs, said Cote.
Grain growers were among investors in Eagle Creek Stock Farms, a 600-sow barn that opened this year. Limited partners in the company will supply some of the 4,000 tonnes of feed grain the barn will need every year.
Jonas said the government expects a 50 percent increase in the number of hogs produced in Saskatchewan by 1999, bringing production to around 1.5 million.
