Genesus Global Market Report - Canada

Canada – First ever Bacon Hour while waiting for China
calendar icon 4 February 2019
clock icon 4 minute read

Bob Hunsberger, Wallenstein Feeds, Hog Economics Summary Sheet shows little encouragement from eight weeks ago, with further erosion in profitability.

Present producer profit projection per pig with average production is (-$22.26). Further average profit production for the next twelve months is projected at $17.16 down from $29.27.

Although the promise of China and ASF buoying the market remains real it can’t come soon or quick enough for an industry that can only charitably be suggested to have had twelve months of tough sledding.

As I reported last commentary Ontario along with difficult markets has had further salt in the wound with high levels of DON (mycotoxin) in the corn. Here are some further details as harvest has become more complete.

Agricorp (crop insurance in Ontario) now have over 3000 damage reports for DON infected corn out of 8600 producers who insure their corn.This covers some 650,000 acres or about one quarter of the acreage planted to grain corn in Ontario in 2018.

GFO (Grain Farmers of Ontario) producer organization from a membership survey in November estimates the real number to be over one million acres. Placing the financial loss to farmers in the neighbourhood of $200 million

Discounts levied by elevators for DON infected corn have varied with reports of more than two dollars per bushel for corn more than five parts per million

So as a corn producer one can easily see serious financial repercussions from this but as a pork producer it extends further. Hogs are particularly susceptible to mycotoxins with potential lingering challenges to both reproductive and growth performance. The nutrition industry is doing a heroic job of attempting to keep it out of hog feed but at this prevalence level they more than have their work cut out. Challenges abound!

In an effort not to be all negative, below is a piece of great news!

A fantastic effort by McDonald’s to promote our product Tuesday January 29. Probably worse things than having a company like McDonald’s pulling for you. Also, a good reminder that you’re producing something that a lot of folks really love.

For my part, although the promotion isn’t in Canada, I’m taking the grandkids to McDonald’s. People that support me warrant the same support.

Bob Fraser

Sales, Genesus Inc.
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