McEwan’s study followed producers in Ontario, Manitoba
and Iowa since 2002. Profitability was very dependent on
feed costs, although he found that all costs have increased
during the period. Producers need to be going through their input costs
line by line, he says. Alternative feeds, such as bakery products
and wheat shorts, may help to reduce the cost of feed.
While there may be a slight productivity trade-off, most
people are willing to sacrifice some performance to bring
the cost of feed down. Utility and labour costs are also areas
where producers may find ways to reduce costs. Perhaps the biggest impact is the depreciation of the American dollar, which has had the effect of lowering prices
for Canadian hogs by 30 to 40 per cent – a difference of
$54.17 per pig between 2002 and 2007. “That is a huge
obstacle to overcome,” says McEwan.
Nonetheless, McEwan remains optimistic about the
future of Ontario pork. “We learn how quickly these things
can change,” he notes. When all production inputs were
compared in farrow-to-wean operations between 2002 and
2006, it was estimated that Ontario producers realized a
profit of $2.66 per pig, Manitoba producers $2.90 per pig and
Iowa producers $2.16 per pig.
“When margins are that close, differences can be overcome
by improved productivity,” McEwan says.