Strong Red Meat and Poultry Demand Fuels Higher Hog Prices

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Farm-Scape, Episode 1504

The SPI Marketing Group says a stronger US demand for red meat and poultry has helped fuel a sharp increase in the price of live hogs in Western Canada.

Hog prices in Western Canada have increased sharply over the past few weeks and are running anywhere from 25 to 30 percent higher than at this time one year ago.

SPI Marketing Group Manager Don Hrapchak says prices are currently hovering between 1.75 and 1.85 per hundred kilograms.

"We've had a very good increase in hog prices and that comes even with hog production and hog marketings at slightly higher levels than what we had last year so, not only are we producing more animals, we are also are getting a much better price.

I think most analysts would indicate that the major reason for the increase in prices is the extremely strong demand for red meat and poultry in North America at this time.

Red meat prices are all stronger. Poultry prices are stronger in the United States and in Canada to a certain extent and so that increased demand has pulled hog prices up nicely this year as compared to last.

I think another factor is that the first three or four months of this year we've had very strong buying activity from the Japanese market.

That wasn't the case last year. The Japanese have come in and have been active buyers and due to that fact they've added a lot of fuel to the hot demand we've got going on right now".

Hrapchak says overall demand for meat protein in the US is stronger with beef, pork and poultry all showing gains and pork showing the most gains.

He says these higher prices are especially encouraging considering producers have gone through some very difficult years during the past five years.

For Farmscape.Ca, I'm Bruce Cochrane.