Overview of the Canadian Pork Industry – Part one

Posted on February 28, 2017 in Swine Performance
Editor’s note: This is the first article in a three-part series comparing the Canadian pork industry to the U.S. pork industry.

By Garrett Rozeboom
Pork production is a big sector of the Canadian agriculture industry and the Canadian pork industry has established itself as a major player in the global pork supply.  The Canadian pork industry is similar to the U.S. industry in many ways, but some differences also make it unique in the global markets.

Editor’s note: This is the first article in a three-part series comparing the Canadian pork industry to the U.S. pork industry.

By Garrett Rozeboom
Pork production is a big sector of the Canadian agriculture industry and the Canadian pork industry has established itself as a major player in the global pork supply.  The Canadian pork industry is similar to the U.S. industry in many ways, but some differences also make it unique in the global markets.

Canadian pork industry by the numbers
In the last 50 years, the Canadian swine industry has increased its total number of pigs by 250 percent while the number of producers has decreased.  The Manitoba, Ontario, and Quebec provinces produce more than 75 percent of the pork marketed in Canada, which includes market hogs, weanlings and feeder sales, and cull sows (Chart 1).

Although these provinces cover a vast geographical area, hog production is typically concentrated in a small area, typically in the southern regions of each province (Figure 1).

As of July 2016, the total Canadian hog inventory was 13.5 million pigs, compared to 68.4 million pigs in the United States.  Last year, Canada slaughtered 21.5 million hogs, an increase of less than 1 percent from 2015, and the Canadian breeding herd saw similar growth from the first half of 2015 to the first half of 2016.  In that same time period, the U.S. breeding herd showed minimal growth, but the total number of pigs slaughtered increased by 2.4 percent in 2016.

Export markets
The Canadian pork industry is largely dependent on exports to other countries.  This plays a vital role in the U.S. hog and pork markets.  In 2015, Canada exported 2.6 billion pounds of pork, 57 percent of the total pork produced there, while the U.S. exported 19 percent of its total pork production.  Additionally, Canada exported 38 percent of its total pork to the United States, which makes the U.S. the largest export market for Canadian pork.  Conversely, 88 percent of U.S. pork imports come from Canada.

In 2016, Canada exported 4.62 million feeder pigs to the United States.  Most of these crossed over the border of North Dakota to be finished in the upper Midwest.  Nearly an additional 1 million finished pigs crossed the border to be slaughtered in North Dakota and Michigan.

Conclusion
The U.S. and Canadian hog industries have a synergistic relationship that has historically benefited both industries.  The U.S. has been the beneficiary of Canadian live hogs, while the U.S. provides a substantial market for Canadian pork.  Products, feedstuffs and knowledge are also constantly traded between Canada and the United States.  Although these two nations have unique differences, they are both pushing the envelope on pork production to become more sustainable as an industry.

About the author:  Garrett Rozeboom grew up raising animals for 4-H on a small farm in Michigan.  Rozeboom attended Southwest Minnesota State University before transferring to the University of Minnesota where he majored in animal science.  After completing his undergraduate degree, Rozeboom earned his master’s degree from the University of Saskatchewan.  He soon began working for an independent nutrition consulting group and spent five years in Canada, dividing his time between Alberta, Saskatchewan, and Ontario, before joining Vita Plus in December 2016.

Category: Markets and economics
Swine Performance