Many hog farmers were able to jump on the recent rally in hog prices before it ended.
The rally has ended, but the relief from the unexpected run up has allowed many weanling producers to continue.
“It may encourage some people to make decisions other than what they were thinking about,” said hog producer Garry Tolton of Newdale, Man.
“Two months of profit don’t make up for two years of losses.”
In recent weeks, Manitoba weanling producers have been able to make sales to U.S. buyers at prices around $40 per piglet, or slightly above break even.
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U.S. hogs averaged $106.69 on a carcass basis July 11, down from $110.21 July 4.
Most market hog prices remained a few dollars below break even, close enough to convince many to carry on, said Manitoba Pork Council chair Karl Kynoch.
“After losing money for three years, anything you can see that’s an improvement really gives a producer some encouragement to hang in there,” said Kynoch.
Weanling producers saw the biggest increase in prices and demand, with American pig feeders buying again to take advantage of futures prices that were profitable.
“American producers could really see profitability again,” said Kynoch.
Unfortunately, the country-of-origin labelling factor restricts the U.S. market for Canadian weanlings, Kynoch said.
Only Tyson Foods and some smaller companies accept pigs raised from Canadian piglets.
Major packers like Smithfield refuse to take them.
Neepawa, Man., hog producer Weldon Newton said the recent rally was far too short to guarantee a future for prairie hog farmers.
“We won’t make up for our losses with a few weeks of profits, or a year of profits,” said Newton.
“We need higher for longer.”
