Swine Canada Inventory Report

Last week Statistics Canada released April 1st Canada Swine Inventory Report. The breeding inventory is real steady, in 2011 1.311 million in 2012 1.312 million.  That is a 100 head difference year over year – real steady.

            The Canada market inventory was up year over year by about 200,000 head (2011 10.519 million – 2012 10.729 million). Canada’s industry is in a holding pattern as profits have been limited by high feed prices, and a par Canadian dollar to U.S.  Producers who grow their own feed are cash flowing quite well.  High cost feed purchasing production systems are losing money.  With the current high feed prices and current future lean hog futures we expect some decrease in the breeding herd in the coming months primarily from feed purchasing companies. Canada’s live hog exports to the U.S. in the first 3 months are steady.

Live Hog Exports to U.S.

Year to date April 4, 2012 Hogs (head)

2012

2011

% change

Barrows/gilts/sows

235,533

278,170

-15.3

Feeder pigs

1,293,049

1,265,723

2.2

Total

1,528,582

1,543,893

-1.0

The U.S. in the past imported more than double the current rate.  U.S. Country of Origin Labeling and lower Canadian pig supply from a Canadian breeding herd 300,000 smaller than a few years ago had dramatically cut Canadian pig supply. Canada’s weekly hog kill is year of date to April 14 -1.1% lower (2012: 5.952 million   2011: 5.990 million).

Summary

            Canada’s breeding herd, U.S. live exports, and slaughter numbers have little change year over year.  A small increase in market hog inventory from productivity gains.  Canada’s production is not changing much anytime soon due to high feed prices, currency exchange rate, but probably just as importantly very little long term optimism.

U.S. – Canadian Hog Inventory

            The U.S. – Canadian report for April indicates the direction of the two interdependent countries inventory and supply.

Item March Inventory

2007  1000 head

2008 1000 head

2009 1000 head

2010 1000 head

2011 1000 head

2012 1000 head

2012 as % of 2011

All hogs and pigs

76,625

80,218

77,704

75,218

75,514

76,912

102

Keep for breeding

7,720

7,675

7,377

7,074

7,098

7,130

100

Market

68,904

72,544

70,328

68,144

68,416

69,782

102

Under 50 pounds

24,823

23,824

22,530

22,955

23,567

103

50-119 pounds

19,175

19,107

18,649

18,139

18,675

103

120-179 pounds

15,073

14,,473

14,083

14,562

14,750

101

180 pounds and over

13,473

12,925

12,883

12,760

12,780

100

Sows farrowed

3,730

3,876

3,766

3,595

3,551

3,586

101

Pig crop

34,431

36,340

36,024

34,838

35,067

35,947

103

 Observations

            *U.S.A. – Canada breeding herd has not significantly changed over the last year, and last two years.  The total breeding herd is about 600,000 smaller than 2007 the decline from 2007 of financial losses and productivity increases. *The 2012 combined market hog inventory is 2% higher than 2011 but still almost 3 million head smaller than in 2008.  The increase in 2012 is truly a reflection of increased productivity from a steady breeding herd. *The combined pig crop for the quarter was up year over year 3% (about 900,000).  This is a big jump year over year and will mean more hogs in the last quarter of 2012.

Domino’s Pizza stand up to Humane Society of United States

            The shareholders of Domino’s Pizza strongly rejected a motion at their 2012 annual meeting that would require its suppliers to stop housing gestation sows in stalls.  Only 4% of the shareholders supported the motion.  A massive rebuke to the Humane Society of the United States; Domino’s spokesman Tim McIntyre says “We rely on animal experts to determine the best way to raise an animal that is being used for food.”

            The resounding defeat of the motion is a virtual slap in the face of the Humane Society of the United States.  Their massive fundraising efforts will continue as they push a thinly veiled attempt to create a vegan society.  Every swine producer should not only thank Domino’s but eat their pizza.  It is great to see an American company standing up to the righteous bullying tyranny of the Humane Society of the United States.  There is hope.  Several millenniums of human history of eating meat won’t be stopped by a Washington lobby group.

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This post was written by Genesus