A Market Analyst with KG Market Analysis and Consulting says, despite the challenges, the outlook for the prairie hog industry looks very positive in the coming years.
“Structural Change and Competition on the Prairies” was among the topics discussed last week in Winnipeg as Manitoba Pork hosted its 2016 Annual General Meeting.
Kevin Grier, a Market Analyst with KG Market Analysis and Consulting, says, when sourcing hogs, western Canada’s pork processors have to think about the competitive impact of pricing and whether setting higher prices will stimulate production and increase available supply or simply result in moving hogs from one processor to another and, at the same time, they must be aware of their larger lower cost U.S. competitors.
One thing we have to get across about ourselves is that we are a global powerhouse in the world of pork. We are the third largest exporter in the world, we’re the sixth largest producer and we have been gaining and enhancing our market share in global markets, we have been gaining and enhancing market share in our own market against the Americans. Not only that, we have an environment where the domestic demand for pork has been improving and global demand for pork has been improving.
You’ve also got a positive picture in terms of our overall cost of production at the producer level compared to global competitors so I want to convey a positive message in terms of Canada’s role, Canada’s ability to compete and producers should consider that it’s going to continue to be positive from a global perspective. ~ Kevin Grier – KG Market Analysis and Consulting
Grier acknowledges there are challenges, such as high construction costs and pending new regulations, that are constraining growth but improved demand globally and domestically is positive and Canada is a very competitive so if you think about the big picture the scenario for the prairie hog industry is very positive in the coming years.
