Industry Information

Industry Information

State of the Industry

Hog production has been increasing steadily in Saskatchewan over the past decade, in large part due to the province's many natural advantages for livestock production.  The abundant supply of feed grains, millions of acres of arable land suitable for manure application, well established environmental and water protection regulations and guidelines, and access to world class swine research organizations make Saskatchewan an ideal location for raising hogs. 

The Saskatchewan pork industry continues to operate in an ever-changing environment.  Many economic and market factors impact the profitability of our producers.  Over the past year, hog producers have seen an unprecedented rise in the value of the Canadian dollar relative to US currency and, in western Canada particularly, shrinking slaughter capacity.   This has had a dramatic effect on producers competitiveness in the world market and increased transportation costs to get their animals to market.  The pending implementation of  Country of Original labeling requirements in the US has further eroded producers' profits with the reduced value paid for Canadian live swine shipped into the U.S.

Just one of the above factors can have a detrimental impact on a producer's profitability, but all of these factors culminating in a one-year period is unprecedented.  Many have coined this "a perfect storm" which is creating irreversable consequences for many hog producers across the country.

 Sask Pork monitors industry trends and market prices regularly by:

  • Analyzing the effectiveness and make recommendations with respect to to government policies and programs that relate to the hog industry, and more specifically, farm safety net programs available to producer.
     
  • Tracking, monitoring and creating statistical reports and industry updates relating to the:

                        1.   Saskatchewan pork industry 
                        2.   North American pork industry
                        3.   Western Canadian grain industry

  • Developing and maintaining cost of production and price benchmark information on the Saskatchewan industry for direct comparison with other jurisdictions;
     
  •  Maintaining working relationships with producers, academia, government, and business organizations;
     
  • Working with the other western provinces in developing and maintaining the slaughter database and other traceability initiatives.

A number of support programs were announced in the last year to provide financial assistance to many producers during this difficult financial period:

In April 2008 the Government of Canada announced a national Cull Breeding Swine Program which will result in a 10% decrease in the Canadian swine breeding herd by mid-2008.  Producers participating in the program must depopulate one breeding barn for a three year period.  

In December 2007, the Government of Canada also announced the Advanced Payments Program for Hog Producers which will provide producers with easier access to cash flow by adding negative margin coverage under AgriStability as security for the Advance Payments Program (APP).

Also in December 2007, the Province of Saskatchewan announced up to $90 million for a Short Term Hog Loan for hog and cattle producers producers.

Click here for direct links to federal and provincial farm support programs available.