Canada-Decline in livestock numbers.

CANADA-DECREASE IN LIVESTOCK ALARMING FOR THE FUTURE OF FARMING.

Statistics Canada reported Tuesday that on farm numbers of cattle, hogs and sheep were all down on January 1 from year earlier levels.

The federal agency said this reflected "market uncertainty and rising input costs." Hog inventories were down 10.2% to 12.4 million. Cattle producers reported 13.2 million head as of January 1 this year, down 5.1% compared with same period a year earlier. Sheep and lamb numbers fell 2.1% to 808,200 head, Statistics Canada reported.

"Rising input costs, due in part to increased feed grain prices and market uncertainty, had an impact on producers in all three sectors, and exerted downward pressure on profits," the Ottawa based agency added. The agency also blamed other factors for driving down animal numbers across Canada. Among those other factors is the flirting with tougher country of origin labeling (COOL) by the previous and current U.S. Administration. This issue has taken on new life in recent days.

In the case of hogs, the Canadian government put the Cull Breeding Swine Program in place to help hog producers reduce the size of their herds. Last year’s smaller hog numbers continue a three year trend. The breeding herd was off 7.1% last year to 1.4 million head.

"Despite the recent decline in the Canadian dollar, hog producers are still facing financial pressures. Lower prices drove down revenues for hogs sold for domestic slaughter and for export," the agency said. "Over the last decade, hog production has evolved toward complete market integration in North America. American hog finishing operations took advantage of an ample local corn supply and fed it to weaners born from the breeding and farrowing operations in Canada. In addition, a shortage or a loss of slaughter capacity on one side of the border has been offset by sufficient capacity on the other side."