Latest Week's Live Swine Imports From Canada Year's Largest

July 18, 2007 — 

KANSAS CITY (Dow Jones)--Canadian hogs and pigs continue to pour into the U.S. at a record pace. For the week ended June 30, there were over 196,000 head, the largest of the year and up 22% from a year ago.

U.S. Department of Agriculture data show that for the first six months, swine imports from Canada are running 10.3% above a year ago. At the current pace, the total could approach 9.0 million head by year's end.

Reduced slaughter capacity in Canada and rising feed costs are resulting in more hogs and pigs being shipped south to the U.S., analysts said.

USDA and Agriculture Canada data show Canadian hog slaughter through the first 25 weeks of this year was down 2.9% from a year ago, with the difference amounting to about 291,000 head. Year-to-date U.S. live swine imports from Canada amount to about 432,400 head more than in 2006.

Feeder pigs make up about 54% of the increase from a year ago. Barrows and gilts sent directly to U.S. plants for slaughter account for 43% of the January-June growth. The balance, or approximately 12,500 head, are sows and boars for breeding or slaughter.

Weak hog prices in Canada due to the strength of the Canadian dollar and high feed costs have caused producers there to trim the breeding herd. The April 1 breeding herd figure stood at 98.4% of a year ago, according to Statistics Canada. The July 1 inventory data are scheduled for release later this month.

Analysts and traders said if the July 1 breeding herd in Canada is further reduced from the April 1 figure, the number of feeder pigs and hogs for slaughter to be shipped to the U.S. later in the year may decline from the first half.

Cattle/Hog Slaughters

U.S. cattle slaughter for the week was estimated at 582,000 head, compared with 696,000 a week ago and 598,000 a year ago. Year-to-date slaughter stands at 17.311 million head, up 1.6% from a year ago.

The USDA estimated this week's hog slaughter at 1.650 million head, compared with 1.939 million a week ago and 1.621 million a year ago. The year-to-date total is 53.321 million head, up 2.2% from a year ago.

Total Meat Production

The USDA estimated total beef, pork and lamb production for the week at 779.3 million pounds. Last week's output was 923.4 million pounds. The year-ago output was 795.2 million pounds. Year-to-date combined meat output is 24.109 billion pounds, up 1.1% from last year.

Broiler/fryer slaughter for the week was estimated at 149.775 million head, compared with 166.260 million a week ago and 139.425 million a year ago.

Source: Curt Thacker; Dow Jones Newswires; 913-322-5178; curt.thacker@dowjones.com