The contents of this page are no longer available.Alberta's Pork Production Industry Government of Alberta, Alberta Agriculture and Rural Development Government of Alberta, Alberta Agriculture and Rural Development Government of Alberta, Alberta Agriculture and Rural Development 2001-05-08 2009-02-11 Livestock`Pigs`Industry Overview`Business & Economics Alberta's pork industry has grown in recent years as shown by the increase in hog population and marketings for slaughter. eng report 2003-04-01 Agribusiness;Processors;Producers (Livestock) 1987-08-01 www1 deptdocs agdex 2007-08-02 , Government of Alberta, Alberta Agriculture and Rural Development Government of Alberta, Alberta Agriculture and Rural Development Government of Alberta, Alberta Agriculture and Rural Development 2001-05-08 2009-02-11 Livestock`Pigs`Industry Overview`Business & Economics Alberta's pork industry has grown in recent years as shown by the increase in hog population and marketings for slaughter. eng report 2003-04-01 Agribusiness;Processors;Producers (Livestock) 1987-08-01 www1 deptdocs agdex 2007-08-02

Pig Production: a Summary

Canada
Canada leads the world in pork exports. In 2000, Canada overtook the United States as the world's largest pork exporting country, and in 2001, Canada accounted for 20.4 per cent of the world's pork exports. Receipts from export sales, mostly to the USA, rose 24 per cent.

The Canadian pig sector has almost tripled since 1975. Hog inventory grew from 5.2 million head in 1975 to 13.96 million head in 2001. It has expanded by more than 30 per cent since 1990. Total Canadian hog inventory grew by 4.1 per cent between 2001 and 2000.

Pig receipts grew 14 per cent, between 2001 and 2000, to $3.85 billion, some 38 per cent above the previous five-year average. Pigs marketed have also reached record levels.

Canada's export of pork and live hogs increased 23 per cent between 2000 and 2001, from $2.24 billion to $2.77 billion.

Alberta
Alberta's pork industry also shows steady growth in the last 25 years. In Alberta between 1976 and 2001:

  • farm cash receipts for hogs increased more than 4-fold, from $111 million to $570 million (Table 1); however, these receipts are forecast to decline to $513 million in 2002, due to high feed prices and low hog prices.
  • market hog production more than tripled, increasing from 1.1 million head to over 3.6 million head (Figure 1)
  • market hog inventory (population) more than doubled, increasing from 0.79 million head to over 1.82 million head (Figure 1)
  • breeding sow and bred gilt inventory more than doubled, increasing from about 86,222 head to 200,478 head (Figure 2)


Figure 1. Alberta market hog inventory (July 1) and annual production, 1971 to 2001

Source: Statistics Canada and Agriculture and Agri-Food Canada

 

Alberta's Pork Production Industry

 
 
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Table 1.
Alberta hog farm cash receipts and number and percentage of hog farms reporting gross farm cash receipts of $2,500 or more
Hog farms reporting gross farm cash receipts of $2,500 or more1
Year
Hog farm cash receipt$ (000)
Alberta farms with one or more pigs
Number of farms
% of all hog farms
1976
111,258
12,513
1,176
9.4
1981
189,624
9,994
1,402
14
1986
279,377
6,538
1,635
25
1991
276,091
6,200
1,653
26.7
1996
444,585
4,270
1,149
26.9
2001
570,062
2,677
848
31.7
Source: Statistics Canada, Census of Agriculture

1 Farms that report gross farm cash receipts of $2,500 or more that obtain over 50% of the receipts from hogs


Figure 2. Alberta breeding sow and bred gilt inventory and average number of sows per census farm, 1976 to 2001

Source: Statistics Canada, Census of Agriculture

Hogs and Farms in Alberta

Hog population
Grow-finish hogs. In 2001, Alberta had an inventory of 1.132 million grow-finish hogs on census farms. Over half these hogs were in the Red Deer, Lethbridge, and Drumheller areas (Table 2). In 2002 (July 1), Alberta had an inventory of 1.288 million grow-finish hogs.

Weaner and nursery hogs. In 2001, Alberta had an inventory of 0.685 million weaner and nursery hogs on census farms. Almost 60 per cent of these animals were in the Red Deer, Lethbridge, Drumheller and Medicine Hat areas (Table 2). In 2002 (July 1), Alberta had an inventory of 0.593 million weaner and nursery hogs.

Breeding sows and bred gilts. In 2001, Alberta had an inventory of 200,478 breeding sows and bred gilts on census farms. Almost 60 per cent of these animals were in the Red Deer, Lethbridge, Drumheller and Medicine Hat areas (Table 3). In 2002 (July 1), Alberta had an inventory of 210,400 breeding sows and bred gilts.

Boar over 6 months. In 2001, Alberta had an inventory of 9,324 boars on census farms, over 60 per cent of which were in the Lethbridge, Red Deer, Drumheller, Barrhead and Edmonton areas (Table 3). In 2002 (July 1), Alberta had an inventory of 8,500 boars.

A map of Alberta's census divisions is shown in Figure 7.

Table 2.
Location of grow-finish pigs, and weaner and nursery pigs in Alberta by census division and area
in 2001
Grow-finish (G-F) pigs
Weaner & nursery (W-N) pigs
Average per farm
Area centre
Census
division
#of
farms
#of
pigs
%of
total
#of
farms
#of
pigs
%of
total
G-F
W-N
Red Deer
8,9
260
216,876
19.2
189
119,400
17.4
834
632
Lethbridge
2
172
184,380
16.3
125
107,888
15.7
1,072
863
Drumheller
5
135
165,287
14.6
106
114,523
16.7
1,224
1,080
Barrhead
13,14
362
98,701
8.7
167
46,960
6.9
273
281
Wainwright
7
125
87,319
7.7
63
53,753
7.8
699
853
Medicine Hat
1,4
76
84,807
7.5
51
61,578
9.0
1,116
1,207
Camrose
10
282
82,392
7.3
163
49,418
7.2
292
303
Edmonton
11
245
73,660
6.5
145
36,437
5.3
301
251
Pincher Creek
3
79
64,173
5.7
56
38,087
5.6
812
680
Calgary
6,15
100
47,860
4.2
69
33,176
4.8
479
481
Peace River
17,18,19
222
25,675
2.3
112
13,774
2.0
116
123
Bonnyville
12
120
12,137
1.1
82
10,288
1.5
101
125
Alberta
All
2,083
1,132,449
1,328
685,282
544
516
Source: Statistics Canada, Census of Agriculture

Table 3.
Location of breeding sows and bred gilts, and boars in Alberta by census division and area
in 2001
Breeding sows &
bred gilts
Boars
Average per farm
Area centre
Census
division
# of
farms
# of
sows
% of
total
# of
farms
# of
boars
% of
total
Sows
Boars
Red Deer
8, 9
205
36,370
18.1
192
1,317
14.1
177
6.9
Drumheller
5
103
31,567
15.7
100
1,096
11.8
306
11.0
Lethbridge
2
130
29,771
14.9
120
1,497
16.1
229
12.5
Medicine Hat
1, 4
64
18,682
9.3
62
753
8.1
292
12.1
Barrhead
13, 14
209
16,109
8.0
182
921
9.9
77
5.1
Camrose
10
196
15,807
7.9
167
785
8.4
81
4.7
Wainwright
7
78
14,081
7.0
70
577
6.2
181
8.2
Edmonton
11
203
11,583
5.8
166
789
8.4
57
4.8
Pincher Creek
3
51
10,669
5.3
48
593
6.4
209
12.4
Calgary
6, 15
83
7,401
3.7
66
376
4.0
89
5.7
Peace River
17, 18, 19
180
4,300
2.1
131
377
4.0
24
2.9
Bonnyville
12
111
4,138
2.1
94
243
2.6
37
2.6
Alberta
All
1,613
200,478
1,398
9,324
124
6.7
Source: Statistics Canada, Census of Agriculture

Hog farms
Average hog farm size is increasing while the number of hog farms in Alberta is declining. The number of farms with hogs in Alberta decreased 37 per cent between 1996 and 2001 (Tables 1 and 4). Market hog inventory (+8 per cent), annual market hog production (+43 per cent, Figure 1), and the breeding sow and bred gilt inventory (+ 15 per cent, Figure 2) have all increased.

The number of hogs on the average farm with hogs in Alberta increased 10-fold (69 to 757 head), and annual market hog production increased 16-fold (75 to 1,279 head) between 1971 and 2001 (Figure 3). The trend to fewer and larger farms is also seen throughout Canada and the United States.

The majority (82 per cent) of the pigs in Alberta were located on farms with an inventory of over 527 pigs in 1996. In 2001, most (82 per cent) of the pigs in Alberta were located on farms with an average inventory of over 1,127 pigs.

Over the last six years, most (82 per cent) of the pigs in Alberta were located on 17 per cent of the farms with pigs. Similarly, the majority (80 per cent) of the pigs on Canadian farms were located on 21 per cent of the farms with pigs in 2001.

Although the total number of hog farms in Alberta declined from 26,000 in 1971 to 2,677 in 2001, the number of farms in Alberta that listed pigs as their primary source of income only really declined after 1996, from 1,149 farms in 1996 to 848 farms in 2001. Farms we define as having pigs as their primary source of income have gross farm cash receipts of at least $2,500 and obtain over 50 per cent of their farm cash receipts from hogs.

Previously (1976 to 1996), between 1,100 and 1,700 farms in Alberta listed pigs as their primary source of income. The proportion of farms with pigs for which pigs are the primary source of income has increased from 9 per cent in 1976, to 32 per cent in 2001 (Table 1).

If at least one hog is listed on inventory, the Census of Agriculture defines the operation as a farm with hogs. Statistics Canada then further divides farms with hogs into two broad categories:

  • farms with less than 20 pigs on inventory
  • farms with 20 or more pigs on inventory
These farms are further sub-divided into three categories:
  1. farrow-to-finish operations
  2. finishing operations
  3. farrowing operations
Table 4.
Distribution of census pig farms in Alberta and Canada by herd size, 1996 and 2001
 
Alberta
Canada
 
1996
2001
2001
Herd size (head)# of farms% of total# of farms% of total# of farms% of total
1 to 272
3,010
72.1
1,760
65.7
8,435
54.5
273 to 1,127
762
18.3
453
16.9
3,711
24.0
1,128 to 2,652
256
6.1
250
9.4
2,093
13.5
2,653 to 4,684
96
2.3
120
4.5
706
4.6
4,685 and over
49
1.2
94
3.5
527
3.4
Total farms
4,173
100
2,677
100
15,472
100
Source: Statistics Canada, Census of Agriculture


Figure 3. Average number of pigs per census farm and average sales per farm in Alberta, 1971 to 2001
Source: Statistics Canada, Census of Agriculture

Table 5.
Distribution of total pigs on census farms in Alberta and Canada by herd size, 1996 and 2001
 
Alberta
Canada
 
1996
2001
2001
Herd size (head)
Number of hogs
% of total
Number of hogs
% of total
Number of hogs
% of total
1 to 272
144,060
8.4
78,134
3.8
423,526
3.0
273 to 1,127
439,464
25.4
278,742
13.7
2,363,916
17.0
1,128 to 2,652
436,138
25.2
441,354
21.8
3,625,856
26.0
2,653 to 4,684
338,752
19.6
419,100
20.7
2,447,284
17.5
4,685 and over
370,396
21.4
810,203
40.0
5,098,190
36.5
Total
1,728,810
100.0
2,027,533
100.0
13,958,772
100.0
Source: Statistics Canada, Census of Agriculture

Alberta farms with fewer than 20 pigs
In 2001, 1,016 farms with pigs (38 per cent of all farms with pigs) in Alberta reported an inventory of fewer than 20 pigs:

  • 63 per cent raised grow-finish hogs - average inventory of 5 grow-finish hogs
  • 16 per cent contained nursery/weaner hogs - average inventory of 7 nursery/weaner pigs
  • about 40 per cent contained boars and/or breeding sows/bred gilts - average inventory of 4 breeding females and 1 to 6 boars
Alberta farms with 20 or more pigs
In 2001, 1,661 farms with pigs (62 per cent of all farms with hogs) in Alberta had an inventory of 20 or more pigs. These farms can be classified into three types of operations:
  • farrow to finish operations - 911 farms
    These operations have an average inventory of 183 breeding sows and bred gilts, 8.5 boars, 951 grow/finish hogs and 667 nursery/weaner pigs
  • finishing operations - 466 farms
    These operations have an average inventory of 581 grow/finish hogs.
  • farrowing operations - 284 farms
    These operations have an average inventory of 110 sows and gilts for breeding, 4.5 boars and 285 nursery/weaner pigs.
Hog Distribution

Canada
Alberta's share of Canada's hog inventory has varied from 12 to 22 per cent over the past 30 years (Figure 4). The location of hogs in Canada has also changed (Figure 5). Between 1975 and 1980, hog inventory increased rapidly in Quebec, from about 1 million to 3.5 million hogs. Hog numbers in Quebec remained relatively stable until 1994, after which they increased by about 5 per cent annually. In July 2002, Quebec had a total inventory of 4.3 million hogs.

Expansion of Quebec's hog industry has since been limited because on June 13, 2002, the Quebec government placed an 18-month moratorium on the building of new hog barns in the province.

Total hog numbers in Ontario increased at the same time as those in Quebec, from 2 million head in 1975 to over 3 million head in 1980, and have remained fairly stable ever since.

Alberta hog numbers declined between 1971 and 1976 to 0.9 million head, and they have increased by about 5 per cent annually ever since, to 2.1 million head in 2002.

Total hog inventory in Manitoba increased at a rate similar to that in Alberta until 1994, after which it increased by about 11 per cent annually. In 1998, total hog inventories in Manitoba exceeded those in Alberta for the first time.

However, mot of Manitoba's hog production is exported to the United States as feeder pigs. See section on pork and live hog exports (page 16 to 18) for more details.


Figure 4. Total pig inventory in Alberta as a percentage of the Canadian inventory, 1971 to 2001
Source: Statistics Canada, Census of Agriculture


Figure 5. Total pig inventories (July 1) in Ontario, Quebec, Alberta, and Manitoba, 1972 to 2002
Source: Statistics Canada

Breeding sow and bred gilt inventory has increased in Alberta, Quebec, Ontario and Manitoba since 1991, but the average rate of increase differs among provinces (Figure 6). The average increase rate in sow numbers was greatest in Manitoba (12.5 per cent), least in Alberta (1.1 per cent) and 3.8 and 1.9 per cent in Quebec and Ontario, respectively. In Manitoba, after 1994 sow inventory increased at about the same time as total hog inventory.


Figure 6. Sow inventories (July 1) in Ontario, Quebec, Alberta, and Manitoba, 1991 to 2002
Source: Statistics Canada

In 2001, Alberta had the fourth largest hog inventory in Canada with 14.5 per cent of Canada's 13.96 million pigs. Quebec accounted for 30.6 per cent of Canada's pigs (4.3 million head), Ontario had 24.8 per cent (3.5 million head) and Manitoba had 18.2 per cent (2.5 million head).

  • Average total pig inventory per census farm in 2001 was larger in Quebec (1,556 average head), Manitoba (1,523 average head), and Canada (902 average head) than Alberta (757 average head).
  • Average breeding sow and bred gilt inventory per census farm in 2001 was larger in Manitoba (338 average head), Quebec (258 average head), Ontario (127 average head), New Brunswick (125 average head) and Canada (165 average head) than Alberta (124 average head).
  • Average inventory of grow-finish pigs per census farm in 2001 was larger in Quebec (1,175 average head), Manitoba (960 average head), Saskatchewan (546 average head) and Canada (646 average head) than Alberta (544 average head).
Alberta
Between 1996 and 2001, total hog inventory in Alberta rose by 17 per cent to over 2 million head. This increase was not uniform across the province (Table 6); a map of Alberta's census divisions is shown in Figure 7.

Table 6.
Total inventory of pigs on census farms in Alberta by census division and area
Area centre
Census division
1996
2001
% change
(1996 to 2001)
Red Deer
8, 9
349,866
373,963
+ 7
Lethbridge
2
269,394
323,536
+ 20
Drumheller
5
212,765
312,473
+ 47
Medicine Hat
1, 4
99,576
165,820
+ 67
Wainwright
7
80,472
155,730
+ 94
Barrhead
13, 14
140,153
151,873
+ 8
Camrose
10
164,317
148,402
- 10
Edmonton
11
135,306
122,469
- 10
Pincher Creek
3
92,974
113,522
+ 22
Calgary
6, 15
78,463
88,813
+ 13
Peace River
17, 18, 19
54,001
44,126
- 18
Bonnyville
12
52,523
26,806
- 49
Alberta
All
1,729,810
2,027,533
+17
Source: Statistics Canada, Census of Agriculture

The greatest expansion occurred in the Medicine Hat (+ 67 per cent), Drumheller (+ 47 per cent) and Wainright (+ 94 per cent) areas. But, total hog inventory declined by almost 50 per cent in the Bonnyville area, and by 10 to 20 per cent in the Peace River, Camrose and Edmonton areas. In all other areas, total hog inventory increased by 10 to 20 per cent. In 2001, the Red Deer, Lethbridge and Drumheller areas had the highest total pig inventory in the province and collectively contained 49 per cent of Alberta's pigs (Figure 8).

Growing herd location- About 50 per cent of the grow-finish pigs and weaner and nursery pigs in Alberta are located in the Red Deer (19.2 and 17.4 per cent), Lethbridge (16.3 and 15.7 per cent) and Drumheller (14.6 and 16.7 per cent) areas (Table 2). The Bonnyville and Peace River areas each contain only 1 to 2 per cent of Alberta's growing herd population, and the other areas in Alberta contain between 6 and 9 per cent. In 2001, 16 per cent of Alberta's finishing operation hog inventory was located in the Barrhead and Bonnyville area, 16 per cent in the Camrose area, 15 per cent in the Red Deer area, 12 per cent in the Edmonton area, 9 per cent in the Lethbridge area, 9 per cent in the Drumheller area and 8 per cent in the Wainwright area.


Figure 7. Map of Census Divisions in Alberta
Source: Statistics and Data Development Unit, Alberta Agriculture, Food and Rural Development


Figure 8. Distribution of pigs in Alberta in 2001
Source: Statistics Canada, Census of Agriculture

Breeding herd location-. In 2001, of the 24 operations with an inventory of over 872 breeding females, 7 were in the Red Deer area, 4 in the Drumheller area, 3 in each of the Wainwright and Camrose areas, 2 in each of the Medicine Hat, Lethbridge and Barrhead areas, and 1 in the Bonnyville area (Table 7). In 2001, 5 hog operations had an inventory of at least 78 boars, these are AI (artificial insemination) studs, and were located in the Barrhead, Edmonton, Lethbridge, Pincher Creek and Medicine Hat areas.

Table 7.
Geographic location of farrowing and farrow to finish operations in Alberta in 2001
 
Percentage of operations
Number farms with inventory of:
Area centre
Farrow to finish
Farrowing
873+ sows
78+ boars
Barrhead & Bonnyville (CD 12, 13, 14)
16
25
3
1
Red Deer (CD 8, 9)
16
12
7
0
Camrose (CD 10)
13
13
3
0
Edmonton (CD 11)
12
8
0
1
Lethbridge (CD 2)
11
6
2
1
Drumheller (CD 5)
8
6
4
0
Wainwright (CD 7)
5
6
3
0
Peace River (CD 17, 18, 19)
5
13
0
0
Pincher Creek (CD 3)
5
1
0
1
Calgary (CD 6)
5
6
0
0
Medicine Hat (CD 1, 4)
4
5
2
1
CD = Statistics Canada Census Division in Alberta
Source: Statistics Canada, Census of Agriculture

Location of farms with less than 20 pigs. Most (77 per cent) farms with an inventory of less than 20 pigs in 2001 were located:

  • in the Peace River region (30 per cent)
  • in the Camrose and Edmonton areas (25 per cent)
  • in the Barrhead and Bonnyville areas (22 per cent)
The Growing Herd

Annual Alberta market hog inventory increased slowly between 1991 and 2002, but market hog production was more volatile and reflects the markets (Figure 9).


Figure 9. Annual Alberta market hog inventory (July 1) and production, 1991 to 2002
Source: Statistics Canada, Agriculture and Agri-Food Canada

In 2001, 32 per cent of Canada's grow-finish pig inventory was in Quebec (2.5 million head), 23 per cent in Ontario (1.8 million head), 17 per cent in Manitoba (1.3 million head) and 15 per cent in Alberta (1.1 million head). Only 9 per cent of Canada's grow-finish pig inventory was in Saskatchewan (0.7 million head) (Figure 10).


Figure 10. Provincial nursery-weaner and grow-finish hog inventory distribution, 2001
Source: Statistics Canada, 2001, Census of Agriculture

In 2001, a similar number of Canada's nursery and weaner pig inventory was in Quebec (28 per cent; 1.34 million head) and Ontario (27 per cent; 1.28 million head), 20 per cent was in Manitoba (0.96 million head), and 14 per cent was in Alberta (0.69 million head). Six per cent of Canada's nursery and weaner pigs were in Saskatchewan (0.28 million head) (Figure 10).

The Breeding Herd

Most of the breeding stock in Alberta is composed of synthetic crosses from commercial breeding companies. These synthetic crosses are primarily composed of Yorkshire, Landrace and Duroc genotypes, but other breeds with desirable traits such as Berkshire, Hampshire, Lacombe, Meishan, and Pietran may also be included.

Breeding sows and bred gilts
Breeding sow and bred gilt (breeding females) numbers on census farms in Alberta have more than doubled since 1976, increasing from 86,222 head in 1976 to 200,478 head in 2001 (Figure 2). Breeding female numbers have continued to increase to 210,400 head in July 2002.

Increases in Alberta's breeding herd account for some of the hog production increases. Improvements in animal genetics and management account for the remainder of the increase; today, hogs grow faster and sows produce more piglets than 25 years ago.

The average number of breeding females per farm in Alberta has increased from 13 in 1976 to 124 in 2001 (Figure 2). In 2001, over 134,000 sows or over 90 per cent of the breeding females in Alberta were on 35 per cent of the hog operations in the province that have sows. These 558 hog operations had an average inventory of 241 sows (Table 8).

Table 8.
Distribution of breeding sow and bred gilts on census farms in Alberta and Canada by herd size in 2001
Number of farms with sows
Number of sows on farms
Alberta
Canada
Alberta
Canada
Sow inventory (head)
Number
% of total
Number
% of total
Average number
% of total
Average number
% of total
1 to 77
1,055
65.4
5,046
59.0
16
8.6
19
6.8
78 to 272
347
21.5
2,226
26.1
154
26.6
153
24.1
273 to 527
149
9.2
696
8.1
369
27.4
373
18.4
528 to 872
38
2.4
322
3.8
635
12.0
657
15.0
873 and over
24
1.5
252
3.0
2,121
25.4
1,998
35.7
Source: Statistics Canada 2001, Census of Agriculture

In 2001, over 75,000 sows or over 35 per cent of the breeding females in Alberta were located on 62 hog operations that keep sows. These farms had an average inventory of 1,210 breeding females.

Working boars
The number of breeding boars in Alberta increased steadily between 1976 and 1991, from 7,600 to 12,214 head. The figure has declined steadily ever since, to 9,324 head in 2001 (Figure 11). The decline in boar numbers is likely due to an increase in the use of AI on-farm. The increased use of AI is reflected in the almost doubling of the sow-to-boar ratio in Alberta since 1976. The sow-to-boar ratio in Alberta increased from 11.4 in 1976 to 21.5 in 2001 and was 24.8 in 2002. This figure is below the average Canadian PigChamp sow-to-boar ratio in 2001 of 33.


Figure 11. Breeding boar number in Alberta and the average number of boars per census farm
Source: Statistics Canada, Census of Agriculture

Since 1991, boar inventory has declined (Figure 12), and the sow:boar ratio has increased (Figure 13) in other Canadian provinces. In 2002, Ontario had the most boars in Canada, with 12,900 head, and Quebec, Alberta and Manitoba each had an inventory of about 8,000 boars. Quebec has the highest sow:boar ratio in Canada. This ratio rose dramatically between 1997 and 2001, from 27 to 51. Similarly, the sow:boar ratio increased in Manitoba from 20 to 38 between 1997 and 2001. The sow:boar ratio in Ontario and Alberta is also increasing, but at a lower rate.


Figure 12. Breeding boar numbers in Quebec, Ontario, Alberta and Manitoba, 1991 to 2002
Source: Statistics Canada


Figure 13. Sow : Boar ratio in Quebec, Ontario, Alberta and Manitoba, 1991 to 2002
Sow : Boar ratio = total inventory of breeding females / total inventory of boars over six months
Source: Statistics Canada

The average number of boars per farm in Alberta increased between 1981 and 2001, from 2.1 to 6.7 (Figure 11). In 2001, almost 80 per cent of boars in Alberta were on census farms that contained up to 32 boars. These farms represented over 97 per cent of farms in Alberta with boars and had an average inventory of 5.4 boars (Table 9). Thirty-one farms in Alberta have an inventory of 33 to 77 boars. These farms house 13.5 per cent of the boars in Alberta, represent 2 per cent of the farms with boars in Alberta and had an average inventory of 40.7.

Table 9.
Distribution of boar inventory on census farms in Alberta and Canada in 2001
Alberta
Canada
Alberta
Canada
Boar inventory (head)
Farms with boars
% of total
Farms with boars
% of total
Average # boars per farm
% of total
Average # boars per farm
% of total
1 to 32
1,362
97.4
7,475
98.1
5.4
79.6
4.5
73.3
33 to 77
31
2.2
100
1.3
40.7
13.5
45.2
9.9
78 to 177
5
0.4
27
0.4
128.2
6.9
111.9
6.6
178 to 272
0
0.0
6
0.1
0
0.0
229.3
3.0
273 and over
0
0.0
7
0.1
0
0.0
469
7.2
Source: Statistics Canada 2001, Census of Agriculture

Production Inputs

Feedstuffs
Barley and wheat have traditionally been used as energy sources in rations for pigs in Alberta. Drought conditions in the prairies in 2002 meant higher levels of corn use, because corn was more available and cost competitive with the other cereal grains in 2002. Oat groats and oils of vegetable and animal origin are also used as energy sources.

Imported soybean meal, locally produced canola meal, peas, meat meal and combinations of these feedstuffs are used as the protein source in rations for pigs in Alberta. Fish meal and crystalline amino acids such as lysine are used to provide better protein quality and amino acid balance. Local animal feed manufacturing industries sell and supply feed ingredients, grains, pre-mixes, complete feeds, supplements and base mixes to farms.

Housing
Swine in Alberta are typically housed indoors year round. Swine barns usually have mechanical ventilation for cooling and air exchange as well as supplemental heating. A few pregnant and open dry sows are kept outdoors with minimal housing; however, this practice increases feed requirements and the risk of disease transmission. Low-cost housing for finishing pigs, such as deep-bedded hoop structures, are also gaining popularity. A significant and increasing number of hogs are raised in this manner.

Labour
Agricultural labour is not subject to parts of the Alberta Employment Standards Code including:

  • hours of work
  • overtime and overtime pay
  • holidays and holiday pay
  • vacations and vacation pay
  • employment restriction of children (under 18 years of age)
  • some regulations that apply to minimum wages.
Details are available from the Alberta Human Resources and Employment website at http://www3.gov.ab.ca/hre/employmentstandards/

Non-agricultural industries standards require that working hours exceeding 40 hours per week, and 8 hours per day be paid at overtime rates or 1.5 times the regular rate. Work on statutory holidays is to be paid at overtime rates, and payment is also made for statutory holidays not worked at regular rates.

Employment benefits, such as annual vacation, pensions, worker's compensation coverage and health care are required at a minimal level, and the minimum amounts could add about 10 per cent to the cost of employment.

Typical swine farm employee starting salaries are $10 to $12 per hour, but rates above this level for experienced workers are common. Since agricultural workers in many parts of the province may live some distance from their work, agricultural employers may provide housing and/or transportation as part of the employment agreement.

Twelve to twenty labour hours per sow housed are required for typical farrow-to-finish farms in Alberta. For example, a 300-sow farm marketing 6,000 finished hogs annually might require 5,000 to 6,000 hours of labour per year. Larger operations tend to have lower requirements per sow housed. Farms with finishing hogs may only require 0.3 to 0.5 labour hours per hog marketed. Thus, one worker can look after 4,000 to 6,500 market hogs per year.

Prices

In 2002, weekly slaughter hog prices in Alberta varied from a high of $1.60 in early February to a low of $0.74 per kg dressed 100 index in early September (Figure 14). These prices are not as low as the $0.46 per kg 100 index dressed seen in late 1998. The drop to below $1.00 from the end of October 1998 to mid-January 1999 put most operations in a production cash loss position. In the fall of 2002, most operations were also in a position of cash losses, this time due to higher feed prices as well as lower hog prices.


Figure 14. Monthly average Index 100 prices for hogs in Alberta
Source: Statistics and Data Development Unit, AAFRD

The 51-week cumulative average price for 2002 was $1.29 per kg 100 index, which is higher than the average price in 1998 (1.15) and 1999 (1.15), but lower than in 2000 (1.55) and 2001 (1.65). It is also lower than the 51-week cumulative five-year average (1996 to 2000) of $1.46. Weekly index 100 hog prices in 2001 ranged from a low of $1.23 in November and December to a high of $2.03 at the end of June.

The average carcass weight for Alberta slaughter hogs has increased from 82.8 kg in 1994 to 89.6 kg in 2001 (Table 10). The average grade index in Alberta has not been publicly available since 1997. The average revenue for a market hog in 2001, using $1.65 per kg 100 index, hot carcass weight of 89.6 kg, and an estimated average index of 109, would be $161 per hog sold. The average Canadian hog value in 2000 is higher than that in Alberta because average hog prices are higher elsewhere in Canada.

Table 10.
Prices and values of Alberta hogs - 1995 to 2001
Year
Hog warm
carcass weight (kg)
Grade index
Average price
100 index
Revenue per hog
1995
86.1
106.4
$1.47
$134.91
1996
86.3
106.5
$1.82
$167.28
1997
86.6
107*
$1.79
$165.86
1998
88.4
107*
$1.15
$108.78
1999
87.3
108*
$1.15
$108.43
2000
88.7
108*
$1.55
$148.48
2001
89.6
109*
$1.65
$161.15
Source: Livestock and Meat Trade Reports, Agriculture and Agri-food Canada
Value per hog = Hog warm carcass weight x average price 100
Index x grade index.
* Estimated value

Production Costs and Returns

Feed costs and hog prices are the most important factors influencing the competitiveness of the hog industry in a region. The net income for hog production is highly sensitive to feed prices, because feed accounts for about 60 per cent of the total production cost for many operations. The cost of feed (Table 11) margin over feed and revenue per hog varies over time.

Table 11.
Price inputs to Alberta hog production
1998
1999
2000
2001
2002
Hog supplement - 40%, tonne
$547*
$498*
$495*
$477
$479
Feed barley - tonne1
$117
$103
$102
$132
$175
Feed wheat - tonne1
$129
$117
$110
$133
$175
Farm labour, per month
$1,666
$1,693
$1,830
$1,894
$1,967
Source: Statistics and Data Development Unit, Alberta Agriculture, Food and Rural Development and the Alberta Grain Commission
1 Average feedmill grain prices from the Alberta Grain Commission. Average of the monthly minimum and maximum grain prices from the Lethbridge and Edmonton area.
* indicates the hog supplement price is based on a 25 kg bag not a bulk value. To estimate the value of a tonne of supplement the price of a 25 kg bag was multiplied by 40.

In the past, feed costs in Alberta have been relatively low, keeping Alberta's cost of hog production as low as or lower than many other locations in the world. Between 1993 and 1997, average feed costs per hog in Alberta were $10.00 lower than Ontario, $18.80 lower than North Carolina and $5.85 lower than Iowa (Alberta Agriculture's Economics Research and Logistics Branch). Only Manitoba had slightly lower average feed costs, partly due to the repeal of the Western Grain Transportation Act. Studies by the George Morris Centre, a respected independent Agri-Food "think-tank" based in Ontario, in 1994 and 1998 found similar results.

But Alberta's cost advantage has been weakened because of increasing feed prices and lower hog prices. A study by the George Morris center between 1999 and May 2001 indicates that Alberta has lower fixed costs than Manitoba and Southern Minnesota. But Alberta has higher feed costs, variable costs, and lower hog prices. The increasing feed prices are mainly due to US farm policy fostering a decrease in corn prices, and barley prices in Western Canada simultaneously increasing because of drought and problems associated with vomitoxin.

Average feed barley prices in Alberta were above 30 per cent higher in 2001 and 72 per cent higher in 2002 than feed barley prices in 2000. Feed grain prices over $200 per tonne were observed in 2002.

The hog-to-barley ratio in Canada is used as a barometer of profitability in the hog industry and to indicate hog farm profitability. The Alberta hog:barley ratio is calculated as the bushels of No. 1 feed barley that are equal in value to 100 lbs of index 100 live hog in Alberta. The index declines as barley prices rise and increases as hog prices rise. The average ratio for the 10-year period (1992 to 2002) was 24.6 (Figure 15). The average ratio for 2002 was 16.1. This figure is lower than the average ratio for 2001 (23.9), 2000 (29.3), and 1998 (18.6). The lowest monthly value over the last 10 years occurred in December 1998 (7.9). Low hog:barley ratios in 2002 are due to the combined effect of low hog prices and high grain prices.


Figure 15. Hog/barley ratios - Alberta basis
Source: Agriculture and Agri-food Canada Red Meats Division, Livestock and Meat Trade Reports
Hog-barley ratio = number of No.1 feed barley bushels equal in value to 100 lbs of index 100 kg live hogs

Pork Processing and Marketing

Pork processing
Western Canada had 11 federally inspected pig slaughter plants operating in 2002 with a combined slaughter capacity of 180,000 pigs/week on a single 8-hour shift. Alberta accounted for four of these plants, which had a total slaughter capacity of 60,500 pigs/wk. Two additional slaughter plants were under construction in Alberta in 2002, with a combined capacity of 11,000 pigs/wk.

Federally inspected slaughter plants are eligible to ship interprovincially and to export internationally. Alberta's plants ship approximately one-third of their production to other parts of Canada and one-third internationally. Alberta's close proximity to the United States's west coast market and Asia provide our packers with a distinct advantage shipping chilled pork. In particular, Alberta packers are able to utilize their Quality Assurance programs and state of the art processing technology, offering optimum shelf life, to access the premium chilled pork markets in Asia.

Alberta also has over 50 small, provincially inspected pig slaughter and pork processing plants that service local markets with a kill capacity of 5,000 pigs/wk. These plants currently kill approximately 3,000 pigs/wk, and represent 5 per cent of Alberta's weekly hog kill. Combined Alberta's pig packing industry offers producers a wide range of marketing options.

Alberta's current slaughter capacity and the packers desire to double shift their plants provide Alberta's pig industry with the opportunity to double their current level of production. Current estimates show Alberta pig producers producing 83,000 pigs/wk of which:

  • 54,000 are killed in Alberta
  • 19,000 are killed in Manitoba, Saskatchewan and British Columbia
  • 10,000 are exported to the U.S., some as far as California, for slaughter and feeding
These figures illustrate the competitiveness and marketing options available to Alberta's producers for their pigs.

Table 12.
Federally inspected pork slaughter and processing plants operating in Alberta
Plant
Weekly Capacity*
Maple Leaf Foods, Lethbridge (D)
5,000
Olymel, Red Deer (D)
45,000
Troval Meats, Trochu
2,500
J & M Meats, Warburg
2,500
Total Federal slaughter capacity
55,000
* Based on a single shift
(D) denotes plants interested and capable of moving to double shifts.

Pork marketing, research and promotion
Alberta began an "open marketing system" for slaughter pigs in December 1996 to replace its compulsory hog marketing system. A producer vote in July 1998 determined this system will continue. Producers may now choose to sell hogs directly to processors or marketing agencies such as the Western Hog Exchange and Rocky Mountain Pork. These groups assemble, schedule and sell pigs destined for slaughter on behalf of producer members. Details of the Western Hog Exchange's (http://www.westernhogexchange.com/) and Rocky Mountain Pork's (http://www.rockymountainpork.com/) programs are available on their respective websites.

Alberta Pork, a producer organization, supports industry research and advertises and promotes pork to consumers. These activities are funded by a compulsory levy of $1.00 per hog marketed for slaughter. In the year ending August 31, 2002, Alberta Pork received a Universal Service Charge from 3,118,518 hogs. Details of Alberta Pork's activities are available on their website at: http://www.albertapork.com.

Pork Consumption in Canada

The per capita consumption of pork in Canada has increased at about 0.1 kg per year over the last 45 years (Figure 16). But over the last 20 years, domestic pork consumption has remained fairly constant at about 28 kg. In 2001, the domestic consumption of pork in Canada was estimated as 28.9 kg per capita on a carcass weight basis and 22.0 kg on a retail weigh basis.


Figure 16. Per capita pork consumption in Canada on a carcass weight basis
Source: Statistics Canada Cat No. 32-229 and 23-603-XPE

Improvements in feeding, breeding and management practices as well as a grading system that rewards lean hogs have resulted in Canadian pork being leaner than ever. Today, the leanest pork cut, the tenderloin, has a fat content similar to skinless, boneless chicken breast. For more information on the nutritional content of pork and other foods go to the USDA's (http://www.nal.usda.gov/fnic/foodcomp/) and Canadian Pork Council's (http://www.cpc-ccp.com/) websites.

Production and Export Trends

Market hog production in Alberta has more than tripled since 1976 and has almost doubled since 1986 (Figure 17). Alberta produced 1.87 million market hogs in 1986 and 3.59 million market hogs in 2001. When viewed as tonnes of pork carcass equivalent (Figure 18), the increase in pork production is even larger; the equivalent of 312,000 tonnes of pork (cold carcass basis) were produced in Alberta in 2001 and 142,000 tonnes were produced in 1986. This larger increase in tonnes of pork produced is due to today's hogs being marketed at higher weights and having heavier carcasses. Average hot carcass weight increased from 78 to almost 90 kg between 1986 and 2001.


Figure 17. Alberta market hog production (million head), 1986 to 2002
Source: Statistics Canada f forecast


Figure 18. Alberta pork production* estimates ('000 tonnes), 1986 to 2002
* Alberta market hog production (including exports) x average cold carcass weight
Source: Alberta Agriculture, Food and Rural Development f forecast

Alberta farm cash receipts from the sale of hogs for slaughter have varied over the years (Figure 19). There was almost a 30 per cent drop in income between 1997 and 1998 ($438 million to $313 million) due to extremely low hog prices. Prices improved slightly in 1999 to $345 million and improved further in 2001 to reach $570 million. Farm cash receipts for hogs are forecast to drop 10 per cent to $513 million in 2002 due to high feed costs and low hog prices.


Figure 19. Alberta farm cash receipts from hog sales, 1991 to 2002
Source: Statistics Canada r revised f forecast

Average production costs and margins have also varied widely over the years, with quarterly margins over the past 5 years averaging about $12 per hog over estimated total costs (Figure 20). Over the past 10 years, annual average quarterly margins, by these calculations, have varied from -$40 to +$50 per hog.


Figure 20. Quarterly returns and cost per hog
Based on a 600-sow farrow-to-finish operation using a financial analysis model.

Pork and live hog exports
Canada has been the world's largest pork exporting country since 2000. In 2001, Canada accounted for 20.4 per cent of the world's pork exports; the US accounted for 19.9 per cent and Brazil, China and Hungary respectively accounted for 9.4, 3.9, and 3.4 per cent of the world's pork exports. The increase in pork exports since the late 1990's (Figure 21) is related to the sharp increase in Canada's pork production; Canada's surplus pork was exported. Canada is forecast to export 815,000 tonnes of pork and 6.0 million head in 2003 (USDA, FAS).

Over half the pork exported by Canada goes to the United States, and over a quarter goes to Japan (Table 13). Canada exported 366,167 tonnes of pork to the United States and 143,797 tonnes to Japan in 2001. Thus Canada exported $1,271 million of pork to the United States and $605 million of pork to Japan. The remainder of Canada's pork exports went to Australia, Mexico, Russia, Korea, China, Hong Kong and Cuba.


Figure 21. Canadian pork exports in volume ('000 tonnes) and price (million Cdn$)
Source: Statistics Canada

Table 13.
Canadian pork export (tonnes and $Cdn) in 2001
Country
Million $Cdn
%
Tonnes
%
United States
1,270.5
57.5
366,167
51.0
Japan
605.3
27.4
143,797
20.0
Australia
61.1
2.8
17,709
2.4
Mexico
50.1
2.3
38,059
5.3
Russia
47.0
2.1
32,246
4.5
Korea
30.4
1.4
25,229
3.5
China/Hong Kong
27.4
1.2
23,244
3.2
Cuba
25.3
1.1
12,301
1.7
Source: Statistics Canada

Canada exports nearly 20 per cent of its annual pig crop to the United States with about 65 per cent of the total moving as feeder pigs. In 2001, 5.3 million head of pigs were exported live to the United States; 3.17 million feeder pigs, 2.15 million market hogs, and 23,9000 head of breeding stock (Figure 22).

About 12 per cent of all pigs born in Canada were exported to the United States as feeder pigs in 2001, and the proportion is increasing. Martin Rice, executive Director of the Canadian Pork Council, forecast that 3.8 to 4.0 million Canadian feeder pigs were exported to the United States in 2002.

Canadian exports of market hogs to the United States have more than quadrupled since 1994, increasing from 0.51 million head in 1994 to 2.15 million in 2001. Since 1999, Canadian feeder pig exports have outnumbered market hog exports on a per head basis (Figure 22). But the dollar value of Canadian market hog exports still far exceeds those of feeder pigs (Figure 23). The value of Canadian market hog, feeder pig and breeding stock exports in 2001 were $386.9 million, $160.1 million, and $9.5 million, respectively.


Figure 22. Canadian live hog exports - feeder and market hogs, and breeding stock ('000 head), 1988 to 2001
Source: Canadian Pork Council


Figure 23. Canadian live animal exports - feeder and market hogs, and breeding stock (million $ Cdn), 1988 to 2001
Source: Canadian Pork Council
Canadian export of breeding hogs ('000 head and million Cdn$)
Year
'000 head
Million Cdn$
1988
4.7
1.415
1989
1.2
0.870
1990
1.8
1.180
1991
2.1
1.469
1992
1.7
0.978
1993
1.5
0.883
1994
0.8
0.890
1995
0.8
0.595
1996
1.2
0.443
1997
4.9
4.442
1998
0.9
0.681
1999
1.3
1.320
2000
5.3
1.846
2001
23.9
9.508
Most Canadian feeder pigs are exported to the United States from Manitoba. Alberta also contributes to the increase in feeder pig exports. Alberta exported 8,515 feeder pigs in 1997 and 129,268 in 2001 (Table 4). In 1997, Alberta's live hog exports were made up of 2 per cent feeder hogs, 97 per cent market hogs, and 0.5 per cent breeding stock. By 2001, Alberta's live hog exports were made up of 18 per cent feeder pigs and 82 per cent market hogs. Even so, the dollar value of Alberta's market hog exports in 2001 was 10-fold greater that feeder pig exports (Table 15).

Table 14.
Alberta pork (tonnes) and live hog (head) exports, 1997 to 2001
International live hog exports (head)
Pork exports (tonnes)
Breeding stock
Less than 50 kg
More than 50 kg
Total
1997
56,052
1,874
8,515
354,526
364,915
1998
33,042
159
18,026
665,894
684,079
1999
41,955
310
64,460
529,103
590,873
2000
56,093
123
68,539
500,724
569,386
2001
61,430
258
129,268
602,587
732,113
Source: Statistics Canada

Table 15.
Alberta live hog exports expressed in $ Cdn, 1998 to 2001
International live hog exports ($ Cdn)
Breeding stock
Less than 50 kg
More than 50 kg
Total
1998
129,367
1,175,940
84,658,568
85,963,875
1999
212,768
4,349,530
68,142,242
72,704,540
2000
96,610
5,531,468
86,773,530
92,401,608
2001
140,086
10,453,701
113,076,031
123,669,818
Source: Statistics Canada

Alberta's exports of pork and live hogs have risen over the past six years (Table 14 to 16). Alberta exported $342 million of pork and live hogs in 2001, up from $223 million in 1996. Alberta accounts for 11 to 15 per cent of Canada's pork and live hog exports (Table 16).

Table 16.
Alberta and Canadian pork and live hog exports expressed in $ Cdn, 1998 to 2001
Year, Values expressed in $’000 Cdn
1996
1997
1998
1999
2000
2001
Alberta
Pork
150,321
177,997
85,924
116,780
177,324
218,253
Live hogs
72,568
61,535
85,964
90,940
92,402
123,670
Total
222,889
239,532
171,888
207,720
269,726
341,923
% of Canadian export
14.70%
13.40%
12.00%
11.50%
12.00%
12.30%
Canada
Pork
1,163,057
1,359,022
1,118,737
1,315,415
1,797,821
2,208,704
Live hogs
383,388
444,678
425,545
337,144
447,149
556,511
Total
1,546,395
1,803,700
1,544,282
1,652,559
2,244,970
2,765,215
Source: Canada Pork International and Canada Pork Council

Most of Alberta's pork exports go to Japan and the United States. In 2001, 54 per cent of Alberta's pork export value went to Japan ($126 million) and 39 per cent ($90 million) went to the United States. But a similar tonnage of pork and pork products went to these countries (Table 17). Mexico was the number three export destination for Alberta pork and pork products; $6.6 million or 5 per cent of Alberta's export volume went to Mexico.

South Korea, Australia, Russia, Hong Kong, China and the Philippines are also important destinations for our pork.

Table 17.
Alberta pork and pork product exports (tonnes and $Cdn) in 2001
Country
$Cdn
%
Tonnes
%
Japan
125,919,050
54.0
29,495,918
43.4
United States
90,262,305
38.7
27,297,437
40.2
Mexico
6,556,227
2.8
3,467,838
5.1
Korea, South
3,569,700
1.5
2,317,851
3.4
Australia
1,821,870
0.8
706,364
1.0
Russia
1,575,662
0.7
1,234,079
1.8
Hong Kong
1,267,239
0.5
1,389,582
2.0
China
543,490
0.2
495,224
0.7
Philippines
498,274
0.2
664,879
1.0
Taiwan
87,710
0.04
113,324
0.2
Source: Statistics Canada

Almost all Alberta's live hog exports go to the United States. In 2001, all Alberta's live hog exports other than breeding stock went to the United States. About half Alberta's breeding stock went to Mexico (77,036 head) and half went to the United States (63,056 head). In the past, China and South Korea have also been the destinations of Alberta's breeding stock exports.

For further information:

Alberta Agriculture, Food and Rural Development
Ag-Info Centre 1-866-882-7677
e-mail: duke@gov.ab.ca
Website: http://www.agric.gov.ab.ca

Information supplied by:

Emma Clowes
Pork Industry Group
Alberta Agriculture, Food and Rural Development
7000 - 113 Street, Edmonton, Alberta T6H 5T6
Telephone: (780) 415-9989

Source: Agdex 440/00-1. Revised April 2003. The contents of this page are no longer available.

   


   
This document is maintained by Ada Serafinchon.
This information published to the web on April 1, 2003.