Benchmark Magazine Article Archive

Broad-based growth in pork exports continues to provide a measure of hope for pork producers in 2024, amid historically challenging market conditions in hog production.

One thing’s for sure: The world needs more Canadian pork. Despite the obviousness of that statement, there are many challenges to getting the product where people want it - where there’s consumer demand.

Even as the world slogs through the pandemic of Covid-19, and the poultry sector sees surges of the Highly Pathogenic Avian Influenza (HPAI) H5N1 virus, the global pig industry in many countries has already faced the onslaught of the deadly African Swine Fever (ASF), as most of the western hemisphere prepares to keep it out.

Although there is a growing list of factors that will disrupt the hog industry, careful planning and risk management can limit the severity of impact on your operations.

Early 2021 witnessed a “perfect storm” brewing in the U.S. hog industry as a marketing whole (less supplies in 2021 at -3.4% vs. last year) due to higher diseases (PRRS/PEDV in Iowa/Minnesota), strong global demand (driven by China) and domestic demand (driven by U.S. stimulus cheques in 2020/21) , higher feed costs, and the pent-up pandemic-recovery demand has resulted in soaring U.S. pork cutout values and futures, which are higher year-on-year (Y/Y) by +90% and +56%, respectively.

The Canadian hog and pig farming industry is composed of many small, family owned farms, leading to fragmentation in the market with the biggest players being HyLife Foods, Maple Leaf Food, Progressive Pork Producers Co-Operative and Sollio Cooperative Group.

The hog and pig farming industry in the United States facilitates feeder pig farming, hog feedlots, hog and pig farms, farrow-to-finish operations and weaning pig operations, with primary outputs being market hogs, feeder pigs, cull stock and breeding stock.

Through the Looking Glass: Past~Present~Future. We know that knowledge of the past helps us today and leads us to be better in the future. Today, the swine industry is fighting a global battle after the impacts of the COVID-19 pandemic and in the prevention or rebuilding after African Swine Fever (ASF) and other swine diseases.

Most rural acreages were single-family farms that raised multiple grain crops and different livestock species. Feed manufacturing consisted of local feed mills where a farmer would purchase crop and livestock needs, as well as a hub (coffee shop) for discussions concerning crops, weather and markets. Many different types of feed were bagged, allowing the farmer to purchase products to be further manufactured on their farm. Bulk ingredient needs, such as protein supplements were delivered by the mill’s feed truck to the farm. A typical livestock ration consisted of whole or ground corn mixed with a protein supplement supplied by the mill.

Raising pigs for food began over 9,000 years ago, yet the biological fundamentals have not dramatically changed.

As noted previously, humans are most likely to be the ones to bring in the African swine fever virus into Canada, either by bringing in contaminated meat, or by travelling with the virus on their clothes, footwear and personal items. Although the virus does not infect humans, it is very deadly for the pigs who come into contact with it. The introduction of African swine fever into Canada would put over 100,000 jobs in jeopardy and cost the Canadian economy $24 billion dollars.

African Swine Fever (ASF) is a viral disease that causes high mortality in domestic and wild pigs. It, along with Classical Swine Fever and Foot and Mouth Disease, is one of the Big Three highly transmissible diseases that would stop our export markets cold if identified in the United States or Canada.

Retaliatory tariffs from major U.S. trading partners are wreaking havoc with American agriculture and other sectors of the U.S. economy. Pork producers have taken a big financial hit because of punitive duties on their products.

The U.S. pork industry now is on three retaliation lists: two from China and one from Mexico.