Sarnia

Hog Processing Capacity Becoming A Concern

Canada's year-to-date hog slaughter continues to push well ahead of last year's pace.

225,000 more head have been processed so far, an increase of 1.6 per cent.

Overall pork production is up 2.2 per cent.

Agriculture and Agri-Food Canada note Ontario slaughter numbers are up by 1.7 per cent so far this year.

As a result hog prices continue to tumble. The only solace for Ontario producers is that the 10.6 per cent dip from this time in 2015 is the lowest of all the provinces.

The trend is similar south of the border.

A week after processing the third largest number of hogs in a week ever, the U.S. sent the 4th largest to market last week.

Ron Plain of the University of Missouri says the concern now is whether or not there'll be adaquate capacities at slaughter plants this fall.

He notes hog futures went down sharply throughout the week.

The national negotiated barrow and gilt price also dropped by more than two dollars, down nearly 22 dollars from this time last year.

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