Pig production in North America is declining, but exports remain strong

This follows the recent closure of a major Olymel pig processing plant in Quebec, affecting nearly 1,000 workers. While announcing the closure of Western companies, the new CEO of Olymel , Yannick Gervais, publicly stated that the company had suffered large financial losses over the past 2 years due to pandemic restrictions, labor shortages, rising inflation and instability in EXPORT markets, especially CHINA . “Now, combined with persistently high feed costs resulting in unprecedented losses in pig production, we have no choice but to reduce production and set ourselves up for future success when conditions improve,” he said.

Similar forecast in the US

Industry columnist and GENESUS President Jim Long said that after the collapse in prices due to the pandemic, the industry is struggling with high feed prices and the continued rise in other costs, such as labor and electricity. “The longer the losses continue, the greater the elimination of livestock,” he said. “We believe that at least 300,000 sows have been eradicated so far in the US, CANADA and Mexico combined. Every week the losses continue - from 15,000 to 20,000 sows every 7 days."

Suggestion 12

The need to comply with Proposition 12 will also lead to a reduction in the number of sows, Long predicts, because many old producers will simply retire and will not make expensive investments in modernizing farms. Cage free pigs also result in lower expected farrowing rates and smaller litter sizes. At the same time, Long reports that in the US industry as a whole there is no increase in sow productivity, but there is an increasing mortality of piglets from weaning to fattening. He estimates that there will be 300,000 fewer sows in the US in 2024, and therefore 5.5 million to 6 million fewer market hogs.

The United States Department of Agriculture (USDA) March 2023 Quarterly Report shows that the U.S. pig population as of March 1, 2023 is up slightly from March 1, 2022, but is down 2% from December 1, 2022. Pork exports from the United States in February this year were 12% higher than a year earlier.

The United States actively exports various types of pork to China , and large volumes of pork are sent to Mexico, the Philippines and Taiwan.