FINAL REPORT by Larry Martin, Kevin Grier, Al Mussell and Kate Stiefelmeyer

The purpose of this paper is to examine the profitability of hog production in Western Canada and the US Midwest.

Studies on international competitiveness in hog production completed by the George Morris Centre in 1994 and 1999 found that Western Canada had the lowest overall cost of the regions evaluated.  To determine whether that was currently the case, the model used in the previous studies was updated with monthly data 1999 to May 2001 representing the Western Canadian Prairies (Eastern Alberta), the Eastern Canadian Prairies (Southwestern Manitoba) and Southern Minnesota.  The model was used to evaluate competitiveness in hog production based on variable production costs, gross margins, and net profit for a 1200 sow farrow to finish operation and for a 1200 sow farrowing unit.