Pork Commentary: Swine Canada Inventory Report01 May 2012
CANADA & US - Last week, Statistics Canada released its 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, writes Jim Long.
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 US. 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 US in the first three months are steady.
|Live Hog Exports to US
Year to date April 4, 2012 hogs (head)
The US in the past imported more than double the current rate. US 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 per cent lower (2012: 5.952 million; 2011: 5.990 million).
Canada’s breeding herd, US 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.
US – Canadian hog inventory
The US–Canadian report for April indicates the direction of the two interdependent countries inventory and supply.
|US – Canadian hog inventory
Annual in March ('000 head)
as % of '11
|All hogs and pigs||76,625||80,218||77,704||75,218||75,514||76,912||102|
|Kept for breeding||7,720||7,675||7,377||7,074||7,098||7,130||100|
|Under 50 pounds||24,823||23,824||22,530||22,955||23,567||103|
|180 pounds and over||13,473||12,925||12,883||12,760||12,780||100|
US–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 two per cent higher than 2011 but still almost three 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 three per cent (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 Stands 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 four per cent of the shareholders supported the motion. A massive rebuke to the Humane Society of the United States, says Mr Long; 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, according to Mr Long. Their massive fund–raising 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. Mr Long added that several millenniums of human history of eating meat won't be stopped by a Washington lobby group.
|Author: Jim Long, President & CEO, Genesus Genetics|
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