Large cuts in hog production combined with reduced feed prices are improving the outlook for western Canadian pork producers, writes Bruce Cochrane, Informa Economics.
Losses within the Saskatchewan swine industry over the past 18 months have been estimated at $100 million dollars. Informa Economics vice president Dave Reimann says the middle half of 2009 looks much more promising.
“Assuming that the global economy doesn't go into a total free fall, I think that we should see a little more stability simply because the industry has done some pretty serious contracting here in the last 12 months and continues to do so,” Reimann says. “It usually takes at least six to nine months for any of those sorts of moves to start to show up in markets so the middle of next year does look a little more promising.” He notes high prices have prompted grain and oilseed producers to dramatically increase their production and that is resulting in lower feed costs.