Mark Ferguson, the general manager of Sask Pork, said Saskatchewan could go from the lowest cost region to feed pigs to the highest, as pork producers rely more heavily on imported feed this coming winter. 
Western Canada has suffered from a severe lack of rainfall this growing season, and feed prices will be high for all hog producers across the west.  
Ferguson said Saskatchewan typically has enough feed wheat and feed barley locally to satisfy the need for feed and rarely imports corn, but this is probably one of those years where that will happen. Hog farms are watching the feed situation closely, especially the feed pricing with the total quantity produced dropping.  
“We don’t know what the end quality is going to be yet but, depending on the grade, whether it ends up being feed or go into existing number one markets for food consumption, I think for what is left out there, we’re likely going to have a higher price.” 
Producers may have to import corn for the hog sector and word has it some farms are using some imported corn. 
The U.S. seems to have a decent crop on the way, so that’s the saving grace on this sector.  
“I think that the issue for hog producers will be can you live with the price the feed is available for? When you’re importing product, you’re not feeding at the lowest cost in North America anymore.” 
Often, Saskatchewan producers have the lowest cost feed sourced locally but importing from the U.S. and considering the lower Canadian dollar; it quickly shifts to the highest cost feed. So from a competitiveness standpoint, it’s certainly not going to be good for Saskatchewan producers. 
Ferguson said the drought is impacting a huge swath of Saskatchewan’s agricultural economy. 
Fortunately, hog producers had a good year in terms of price, but looking at the forward prices and what feed prices could be, the hog sector will likely be in negative margins this fall. 
In Saskatchewan, they’ve made some adjustments to the AgriStability program, going to the 75 percent advance needed this fall as farms get into negative margin territory. •
— By Harry Siemens
Mark Ferguson