For quite some time the pork industry was less than an ideal place to be. More barns closed than opened as demand waned and environmental regulations increased.
It is a different time on the pork industry in 2017. Similar to beef, demand has been very strong, which has prices pushed higher and producers making money.
“I think its phenomenal,” says Kevin Grier, a long time pork analyst when asked about the state of the industry.
Grier continues, “We have seen 3-4 percent more kill per week and yet our prices are very high. 2015, ’16 and ’17 have been very good years and it all is because of great demand. In the last four years we have producer profitability and expansion.”
In terms of processing capacity, there is expansion in Canada and the United States that is keeping inventory current and giving producers a reason to consider expansion.
The two plants that have been built in Iowa have many analysts seeing a bright future ahead for the North American pork industry.
Completing a trade agreement like the Trans Pacific Partnership would be further positive news for the long term viability of the sector in Canada.
As shown in the table above, both NAFTA and TPP countries are very important markets for the Canadian pork sector.
Hear Shaun Haney talk to Kevin Grier of Kevin Grier Consulting about the state of the pork industry and what has brought on this turn around for the producers and processors: