Past economic analysis of the market predicted that the Canadian pork industry was in a uniquely positive position for expansion and profit, yet the market fell and many producers were not able to make any profit. Examining past analysis from a financial point will hopefully provide some insight for why the market behaved as it did. The Canadian industry usually goes through a four year cycle, but after the low point in 2006 profits failed to rise again. Equity had been increasing 2001-2006, and then after 2006 declined back to around 2001 values. Because of this, producers’ borrowing capacity was vulnerable in 2012. As well, after 2006 both working capital, and earnings before interest taxes, depreciation, and amortization (EBITDA) declined. General economic analysis does not look at differences between farms, but those with an integrated crop enterprise would have had an advantage. They would be able to transfer input at cost, keep feed prices lower, and contribute to hog returns. However, these operations tend to be smaller, and there are economies of scale within the pork industry. Larger facilities tend to be more specialized, and are more exposed to risk when feed and hog prices are volatile. Overall, these contributions to the profit loss in 2012 should be considered mainly financial ones, and not economic.