Changes in agricultural policy throughout North America have seen a significant shift in the production and consumption of traditional feed grains. In particular the development of the ethanol industry will create significant challenges for the feeding sectors, especially in years when grain supplies may be limiting. Within the past 12 months pork producers within western Canada have experienced an increase in feed prices of between $10 – $16 per hog marketed.

Historically low feed grain prices through the previous two years have resulted in a higher finished hog weight, simply put, because pork producers generated a higher net income due to the low cost per kg gain. In addition, packers within western Canada have also taken this lead, through grid and loin premium enhancements that encouraged pork producers to increase market hog weight. Rising feed costs and fluctuating market hog prices are generating tight profit margins. Does marketing hogs at heavier weights continue to generate the greatest profit potential?