Strong prices boosted hogs

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Published: February 28, 2002

Last year was boom time for Canada’s hog industry – especially in the

West.

The industry expanded, the herd grew and exports hit record levels,

Statistics Canada reported Feb. 19.

In January, Canada’s hog herd numbered more than 13 million, 3.3

percent higher than a year earlier. All the growth occurred in the West.

The growth in the herd came despite a record shipment of 1.4 million

hogs out of the country in the last quarter of 2001.

“The increase in hog inventories can be partly explained by stronger

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prices in 2001,” said the Statistics Canada analysis.

“Domestic hog prices, which are heavily influenced by the United

States, increased by at least 10 percent.”

Pork exports rose 11.5 percent.

The federal agency also said the Canadian sector appears poised to

continue its expansion.

“The hog industry is showing signs of growth in light of an expanding

breeding stock and farrowings,” said the analysis. The breeding herd

grew by 7.5 percent last year.

The cattle sector had a strong export year as well, fuelled in part by

the sell-off of animals caused by a southern prairie drought and the

high cost of scarce feed.

In 2001, live animal exports rose 36.8 percent, with most going to the

U.S. Beef exports increased 12.2 percent. Domestic slaughter fell

slightly, as did the national cattle herd.

“Localized dry conditions in the Prairies may have affected farmers’

decisions to ship cattle south of the border for feeding, finishing and

slaughter,” Statistics Canada officials wrote.

“Other factors behind the exports were a favourable exchange rate,

growth in the American demand for beef and strong prices.”

All these factors helped overcome the effects of a trade slowdown after

border controls were tightened following last September’s terrorist

attacks in the U.S., said the agency.

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