U.S. ag economist: Canada hog cull 'a good thing'
Tuesday, April 15, 2008, 1:18 PM
by Tom Steever
The Canadian government this week began actively decreasing its hog herd. The $49 million government funded program is aimed at culling 10 percent of Canada's breeding hogs.
Canadian hog farmers are adversely affected by market forces making this action necessary, according to Susie Miller, Director General of Canada's Food Value Chain.
"The cycles, all sorts of cycles, including feed prices, including pork supply, including the appreciation of the Canadian dollar are always difficult on the industry," Miller told Brownfield in an interview Friday.
Qualifying producers get $220 (usd) a head for breeding swine culled after Monday, April 14. The action will have an impact on what Canada has available for export, says Martin Rice, executive director of the Canadian Pork Council.
"We're looking at something in the order of 200,000 to 250,000 tons so that would by 500 million pounds of Canadian pork that won't be out there on the world market," said Rice Friday during an interview with Brownfield.
Although skeptical that the culling action will result in a 500 million pound drop in Canadian pork exports, Ron Plain, agricultural economics professor at the University of Missouri, agrees that Canada's effort to reduce their breeding swine herd by 10 percent is a step in the right direction. The culling program, according to Plain, is a good thing.
"The reality is that hog producers in most countries of the world, and certainly in the U.S. and Canada that's true, are losing money right now," Plain told Brownfield Monday. "Feed prices are very, very high and there's a lot of pork on the market, so there's a real need to downsize."
The 10 percent contraction of the Canadian breeding hog herd, which is about 30 percent the size of the U.S. hog herd, according to Plain, roughly equals reducing the U.S. herd by three percent. Anything that the government can do to encourage herd reduction will benefit producers, he added.
"Otherwise you sort of have a long slow process in which we, in some cases, downsize when the bankers become involved and candidly tell producers 'I'm sorry, you just can't do this anymore, your money's all gone,'" said Plain, "and if we can figure out how to downsize the industry a little bit quicker it'll leave producers in much better shape."
In recent years, says Plain, Canadian pork exports to the U.S. have been declining while live hog numbers from Canada to the U.S. have increased.
Eligible breeding hogs qualifying for the culling program in Canada can't be sold through commercial channels after Monday, and some areas of the country, according to Rice of the Canadian Pork Council, will euthanize feeder pigs.
Additionally, Canadian producers in the program have to agree to depopulate an entire barn and to keep it clear of breeding swine for three years.