Financial losses, due in large part to high feed prices, have caused both U.S.
and Canadian hog producers to reduce the number of litters they are
producing. This has led to an expected 2.5% decline in combined U.S. and
Canadian hog slaughter during 2009. Reduced hog slaughter should lift 2009
hog prices closer to breakeven levels. The biggest uncertainty is the impact
on meat demand of the developing global economic recession.