The Manitoba hog and pork industry is an agricultural success from any economic perspective including growth, jobs, incomes and trade. The Manitoba and, in fact, the entire industry in Canada has undergone a period of three years in which it has suffered disproportionate losses relative to US competitors. As a result, the industry now finds itself in a period of rationalization of packing plants and more rapid attrition in producer numbers. The summer 2007 announcement by Olymel that it would reduce its pricing structure in Red Deer will accelerate the attrition in producer numbers on the prairies. Furthermore, the prospects for packing plant closures on the prairies and in Ontario are factors that, again, will involve massive challenges for producers. Lastly, the pending US legislation regarding Country of Origin Labeling has the potential to further reduce pricing in Canada relative to the US. There will be a period of two to three years of industry pressure and reduced production in much of the prairies and the hog regions of Eastern Canada. At the same time, however, Manitoba is in a strong position on two key fronts. First, and most importantly, the province has enormous production capability in feed grains and land available for hog production. Fundamental factors that made the province the number one growth area in North America are still in place and are at the forefront for the future. The key problems that Manitoba faces in feed grain competitiveness are policy related not natural disadvantages. These policy issues can, and likely will, be addressed. Key among the non-feed grain policy issues relates to environmental legislation. Manitoba must ensure that its regulations address real environmental issues in a way that does not unfairly burden the industry relative to competing jurisdictions. In addition, the packing sector has determined that Manitoba is a place of growth for the future. The packing sector is expanding in Manitoba and new entrants are hoping for the opportunity to participate in the market. Just as importantly, producers have ready access to packers in the United States. Manitoba producers will not escape the coming difficulties but they are in a good position to endure it, compared to other areas of Canada. Furthermore, when the difficulties pass, Manitoba’s model has proven it to be the best place to grow and move forward.