Continuing strong hog prices encouraged producers during a series of recent Alberta Pork meetings across Alberta, said Alberta Pork’s chairman.
“The main topic is the state of the industry’s current pricing and how good it is and we hope that it will stay the same through the futures pricing,” said Alastair Bratton.
“The reason I believe prices are going to remain high and profitability will remain there is the amount of disease in the US,” said Bratton.
With more than half the pigs in the US testing positive for PRRS at slaughter and more than 100 cases of PED in Ontario, the demand for Canadian hogs and Western Canadian hogs will remain high, he said.
“The packers are going to want to be full. People will want isoweans or feeder pigs to keep their barns full.”
Relatively stable feed prices are keeping farmers profitable. The only clouds on the horizon are higher corn prices because of the increase in fuel and fertilizer prices.
“I think the biggest risk to another good year of profit is going to be the ongoing war and weather. If we get a drought year that will be a challenge to profit if feed prices go up.”
The Canada, US and Mexico trade agreement is up for review and is due by the beginning of July. Agricultural officials on both sides of the border are unsure how the negotiations and trade agreements will end. Canadians hope to maintain similar trade rules, but US president Trump has indicated he wants more access to Canadian markets.
“There are no stable trade relationships and nobody is convinced, even the US guys, if we even have consistent trading partners as they move forward.”
Bratton said while the US is the Canadian hog industry’s main market, Canada is chasing other markets to diversify beyond the US. In recent meetings, Canadian officials met with the hog and pork industry in Iowa and Minnesota who do not want to see changes in CUSMA.
“In meetings we have had with Iowa and Minnesota they do not want to see changes to CUSMA. They are in full agreement they don’t want it to change. They want to see agricultural products flow either way with no tariffs.”
During recent meetings in Ottawa, pork officials met on Parliament Hill with senators and MPs to advocate for the industry and the importance of continued trade. •
— Mary MacArthur