Hog Administrative Marketing Services or h@ms held three producer meetings, one each in Manitoba, Saskatchewan and Alberta recently. General manager Bill Alford said in general, independent producers are in good shape noting the most significant factor in Western Canada is a decent average crop. Most producers h@ms represent – get their inputs to feed their hogs from their grain farms. Compared to the 2021 drought which caused much uncertainty in finding the grain for feed and at what cost.   
“Prices are higher than a year ago, which need to be with inputs up even if you raise it yourself.” 
H@ms markets on behalf of independent producers in the three prairie provinces and packers play a vital role in a cyclical market. Sometimes, the packer and producer make money or both lose money, but typically one makes money. And so 2016 to 2020, the packers had a good run with excellent packer margins with abundant hogs available for the market. For 25 years, packers enjoyed a similar advantage but with hog production shrinking on the farm margins and shackle space tightened.   
Alford said various factors led to that high cost of production, slowing production on the prairies and worldwide. The pandemic sometimes threw prices to all-time lows and created much uncertainty.  
“There are fewer pigs than a year ago and the year before. So, that typically put a strain on the packer margins.” 
Alford said that the economic challenges in Japan with their lower yen and the looming recession could affect hog prices and in turn, hog producer’s packers and ultimately the consumer.  
“The biggest part about the uncertainty moving forward is the recession, affecting pork and other meats across the board. We eat less meat when having tough times with our wallets.” 
While pork is generally well positioned, it keeps supplies in check when the demand side is uncertain. There’s really no expansion because of the costs of building especially new hog barns or expanding barns.  
“Producers with any thoughts of expansion have kicked that can down the road. But inflation and a pending recession are looming in the economy.” 
It hurts when the Japanese yen drops and as in a significant Manitoba pork market. But, at the same time, the US dollar keeps rallying against most world currencies.   
“When we export so much and Japan being a key market, that’s what the packers would tell you; it’s tough this year moving meat into Japan.” •
— By Harry Siemens