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The government agency said a softening in hog prices during the past two years, which has resulted in low profits or losses for producers, led to the slight decline. Prices for hogs in Canada were said to have declined 26% during the June-December 2003 period.

Many of Canada's hog producers are not immediately affected by the market price as they produce under contract, Statistics Canada said. But they said growth in the hog sector has been limited following recent years of expansion that often averages 5.0% annually.

Exports during 2003, primarily to the U.S., expanded during the first three quarters before dropping back in the last quarter of 2003, Statistics Canada said.

As Canada is shipping younger pigs to the U.S. for feeding, the breeding herd actually expanded marginally, even though the total number of hogs on farms declined.

Source: eFeedLink - 19th February 2004