Livestock, Dairy, and Poultry Outlook No. (LDPM-12501) 26 pp

November 2004

Market Integration in the North American Hog Industries

by Mildred Haley

About 8 percent of the hogs slaughtered in the United States in 2004 will originate in Canada-many more than 10 years ago. Canadian hogs have flowed into the United States in response to significant structural changes in the U.S. pork industry, concurrent with policy changes in Canada. This, combined with a strong U.S./Canadian dollar exchange rate, created incentives to expand hog operations in Ontario and to start production in Manitoba. In 15 years, an open border and pronounced breeding herd efficiencies helped to increase Canadian hog exports to the United States by more than eight-fold.

Keywords: hogs, pigs, pork, hog industry, imports, trade, Canada, market integration, structural change, policy change

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