The 2015 Canadian Agricultural Outlook reports that Canadian livestock receipts increased by 19 per cent in 2014 because of tight supplies in the U.S.
Last year, livestock receipts reached a record of $25.5 billion due to the price impact of declining herds and low slaughter animal availability. Prices for slaughter animals increased by 25 to 30 per cent. Add in the declining cost of feed grains and Canadian livestock producers saw higher average incomes for both hog and cattle farms.
The Agricultural Outlook predicts hog prices will decline by 15 per cent through 2015 as the PED outbreak appears to be under control and the high prices over the last four years have generated a supply response. For cattle, supply constraints will continue, pushing prices up by another 4 per cent. Incomes for the cattle sector are forecast to remain steady.
Incomes in the dairy and poultry sectors are expected to remain at high levels but will not show significant growth as prices and costs of production are holding steady.
