The first round of bids in Canada's Hog Farm Transition Program was conducted on Nov. 4. In all, 261 bids were submitted, of which 74 were accepted before the $10-million first round allotment ran out. 

To ensure equity among the bids, the producers and all variety of swine and operational structures, the program created a system to compare bids. For each farm, the submitted bid was converted to a dollar-per-animal-unit equivalent-- or as program administrators call it AUE.

In this first round of bids tendered, the weighted average of the 74 successful bids was $765.52 AUE. Bids that were accepted ranged from a low of $300 AUE to a high of $997 AUE. Under the program, the lowest bids are accepted first, followed by successively higher bids until the funds for this period were exhausted. The program administrator and an independent third-party scrutinizer has approved the bid results.

Under the program a producer whose bid is accepted, would have to liquidate an entire breeding barn and it would have to remain empty for three years. This first tender will remove 21,997 sows, 44,565 weaned pigs and 59,653 market hogs from production. However, because the program is retroactive to April 1, it is unclear how many of the sows involved in the accepted bids had been liquidated previously.

The $75 million Hog Farm Transition Program is is a federal program to assist Canadian pork producers in restructuring their industry. It is funded by Agriculture and Agri-Food Canada and administered by the Canadian Pork Council. Bids for the second tender were due Nov.18 to Dec. 9, at 2:00 p.m. EST.

For more, go to  the Alberta Pork Web site.

Source: Alberta Pork