Prairie hog slaughter has stumbled shortly before the crucial fourth quarter of 2005. But a Saskatchewan Agriculture hog market analyst thinks the situation is likely short term rather than permanent.
“I don’t think the trend is less slaughter,” said Brad Marceniuk.
“I think that the long-term trend is more slaughter.”
Until mid-summer the hog slaughter rate in Canada was higher than in 2004, but then it fell between late July and the end of September.
Between July 23 and Sept. 3, Canadian slaughter plants killed 417,612 pigs, a 4.4 percent drop from the same period in 2004.
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In Western Canada, hog slaughter dropped 1.6 percent.
Prairie slaughter hog exports, especially from Manitoba’s Red River Valley, have surged even as weanling and feeder exports have dwindled.
This occurred as small slaughter plants in Moose Jaw and Winnipeg closed and the Olymel plant in Red Deer moved toward a full second shift.
Olymel’s extra production hasn’t yet made up for the disappearance of Best Brands in Winnipeg or Worldwide Pork in Moose Jaw.
“These two plants closed and we haven’t filled in the void yet,” said Marceniuk.
When a plant closes, the hogs normally hauled there immediately have to be sent elsewhere.
But when a plant expands its production, such as the Olymel second shift, it gradually increases its killings as workers, facilities and markets get used to the increased number of pigs that farmers and the company want to run through it.
Olymel has recently been slaughtering 50,000-55,000 pigs per week, which is more than it was killing on its previous single shift, but short of where it would like to be once the second shift is at full capacity. Its maximum will be about 60,000 pigs per week.
Once Olymel is running full out, the temporary slump in hog slaughter should end, Marceniuk said.
Over the longer term, Maple Leaf Foods’ new plant in Saskatoon, when built, will boost demand for slaughter hogs.
“I think we’ve just hit a little spot where we did have less demand,” said Marceniuk. “I think over the long term we’re going to regain it.”
