Ontario Pork

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Prairie Swine Centre is an affiliate of the University of Saskatchewan


Prairie Swine Centre is grateful for the assistance of the George Morris Centre in developing the economics portion of Pork Insight.

Financial support for the Enterprise Model Project and Pork Insight has been provided by:



Author(s): Randy Duffy and Ken McEwan
Publication Date: November 8, 2007
Reference: University of Guelph, Ridgetown Campus
Country: Canada

Summary:

This paper compares the costs of production of three major North American hog producing regions. Ontario, Manitoba, and Iowa all have specific advantages and disadvantages geographically that affect hog raising, such as distance to slaughter plants, price of land, access to feed grains, exchange rates, regulations as well as other factors. The hog business has been changing for years, Canada has had better numbers when it comes to piglets per sow per year because of the remaining amount of small farms in the US, it appears these small farms will cease to exist in the future as farming becomes more industrialized. Researchers have built an economic model that considers several factors to determine which region is best suited for raising hogs in an economically efficient way. The model determined that for farrow-to-wean operations, Manitoba was the best location based on a number of factors, and that for farrow-to-finish, Iowa was the best suited region for economic profit. With trade liberalization growing, agriculture becoming more industrialized, environmental concerns increasing and consumer demand for humanly raised food growing, it appears that the lowest cost producer will survive as they will be  able to adapt to a changing market. This creates a need for  in-depth economic modeling to be able to track all costs closely to remain competitive.

 

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