031226 2003 Canadian Hog Imports to U.S. Up 30%December 21, 2003AgWeb News - USDA's Economic Research Service (ERS), in their monthly outlook report, and the US is set to import nearly 7.5 million head of Canadian hogs this year - 30% above 2002. Almost all import categories of hogs have increased, but in particular, slaughter hog imports have increased 18%, feeder pigs increased 24%, and sows/boars increased 33%, says ERs ERs says the major factor in the rise in Canadian hogs to the US is the ability of the US producer to be able to pay more for hogs than Canadian finishers and packers. "Low Canadian bids derive from weak slaughter margins that directly result from an appreciated Canadian dollar," says the agency. "The appreciated dollar has made Canadian pork more expensive and less competitive in foreign markets where it competes with lower priced pork from the United States and Denmark, in particular." "From a Canadian packer’s perspective, the consequences of the high-priced Canadian dollar and lower export demand for Canadian pork products include--but are not limited to--low-to negative slaughter margins, and reduced slaughter numbers," says ERs ERs also says the Canadian breeding herd appears to be responding to lower packer demand and lower returns on feeder pigs exported to the United States. "Since August, weekly USDA data indicate that US imports of Canadian sows and boars have increased almost 53% over the same period last year, suggesting at a minimum, that culling of the herd is taking place," adds Ers.
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