RIDGETOWN, Ont. – American hog producers have become increasingly optimistic about prices in recent weeks, but production issues remain a worry.
Minnesota veterinarian Mike Brumm told Ontario producers at a recent meeting in Ridgetown that hog farmers in his area have been paying as much as $52 for weanlings and $72 for 40 pound feeder pigs with a June delivery date.
“Is it pie-in-the-sky? There’s clearly optimism on our side of the border because of the prices we’re willing to pay,” he said.
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In Ontario, where the decline in the hog herd has been greater than most other production regions, producers are hoping that the U.S. optimism is justified.
However, they may also be interested in potential production risks.
Concern about vomitoxin in the eastern part of the U.S. corn-growing region appears to be spreading west, Brumm said. Pigs exposed to sufficient levels go off their feed.
“We don’t know what we’ll be feeding these pigs this summer because deteriorating quality seems to be moving right across the corn belt,” he said.
“We thought we were safe but we’re getting increasing complaints of vomitoxin.”
The problem could add another 50 cents to the price of corn by summer, but Brumm said there may be pricing opportunities before then.
Many producers are likely to try moving their corn before it goes bad, he said. A substantial portion of the crop went into storage in poor condition. Complicating the situation is the amount of corn still in the field in the western corn belt – 10 to 15 percent overall and as much as 50 per cent in some areas.
Dave Gordon with London Agricultural Commodities in London, Ont., said Brumm’s vomitoxin concern may be overstated.
“Anything we’ve seen out of the western corn belt has been under two parts per million; at least that’s the guarantee you can get,” he said.
Brumm said another potential production problem can be linked to the aging U.S. sow herd.
A large percentage of sows are in their sixth or seventh parity, which will result in a flush of gilts in the coming months. These tend to be less productive and disease issues will be more of a concern.
He said many issues affect Ontario producers’ ability to compete, including higher labour costs and uncertainly about slaughter capacity.
