Marketing of Canadian Pork

Canadian hog and pork prices generally follow the four year North American price cycle, which is more volatile than in most other countries. Price and availability of product change quickly. Domestic demand exhibits distinct seasonal characteristics which influence product availability, as do buying habits of major international customers.

Canadian hog production and marketing are subject to seasonal and cyclical variability. Although Canadian hogs are virtually all raised in-doors, farrowing and growth rates are still influenced by climatic conditions which results in some seasonal patterns - generally the highest number of hogs are marketed in the first quarter of the year and the lowest on the third quarter. In recent years, the difference between those quarters, averaged around 2% which is much lower than many other warmer countries.

While no two product and price cycles are strictly alike, a North American (Canada and United States) cycle usually lasts about four years, with two years of below average slaughter and higher than average hog prices, followed by two years of higher than average slaughter and lower hog prices. Generally, loin and rib prices peak in the Summer and there is a distinct seasonal demand for legs at Christmas and Easter.

Canadian pork is usually offered for sale in the form of primal cuts, generally consisting of the butt, picnic, belly, loin and leg. It is usually leaner than U.S. pork and the Canadian style of cutting differs somewhat from the U.S., particularly in the loin and shoulder cuts. A Canadian Pork Buyers' Manual (available from Canada Pork International) should be consulted for more detailed information as to trimming, and more specialized cuts. Many variations are possible to suit the customer and while these are not listed here, Canada Pork International will gladly provide the information upon request.

Approximately 50% of all Canadian pork is further processed into cooked and cured products. Our competitive pork prices and advanced processing technology have resulted in an efficient production of bacon, ham and sausage products. In addition, Canada's rich multicultural heritage has led to the development of a wide variety of specialty pork products.

Buying pork and pork products from Canada is facilitated by a very efficient infrastructure which allows Canadian pork suppliers to serve their domestic and foreign customers well. Canadian pork products are usually sourced directly from packers or through one of a number of experienced trading houses. Product is usually offered ex East or West Coasts, which are both well serviced with refrigerated container service. For customers within the continent, product is generally offered in refrigerated truck load lots.

Normally chilled or frozen pork is offered in truck or container lots, weighing approximately 18 tonnes. The usual practice is for product to be quoted for prompt or nearby shipment in single or multiple load quantities. Long term, fixed pricing is not common and there are no export subsidy programs.

In order to increase domestic pork consumption the Canadian pork industry has implemented in recent years a very successful marketing strategy reaching consumers directly through advertising and recipe dissemination, and indirectly via programs with influences, such as the media and health professionals, the retail and the foodservice trade. The campaign stresses the leanness, wholesomeness and versatility of Canadian pork. At the retail level, programs have been developed to increase the number and variety of pork cuts, particularly new value-added cuts, and to implement new presentation and merchandising techniques which significantly increase pork sales and profitability.

While pork is the most versatile meat, too often in North American restaurants it is not exploited to its full potential. A comprehensive program which includes new product development, introduction of new and exciting recipes as well as promotion activities has significantly increased the frequency and variety of pork dishes on Canadian menus. This has given pork a new modern and exciting image.

	SUPPLY AND DISPOSITION OF PORK IN CANADA - 1985-2015
	Production (tonnesx1,000)	Exports (tonnesx1,000)	Exports as a % of production	Imports (tonnesx1,000)
1985	1,088.42	250.81	23.0%	21.23
1986	1,093.92	271.90	24.9%	17.88
1987	1,121.80	301.09	26.8%	22.08
1988	1,181.62	318.79	27.0%	14.44
1989	1,177.15	284.81	24.2%	12.44
1990	1,123.85	297.08	26.4%	11.81
1991	1,096.23	270.24	24.7%	14.91
1992	1,207.70	295.63	24.5%	15.81
1993	1,194.32	302.95	25.4%	22.14
1994	1,229.38	301.42	24.5%	27.25
1995	1,275.76	357.04	28.0%	27.19
1996	1,227.76	372.22	30.3%	38.58
1997	1,256.70	420.19	33.4%	59.63
1998	1,393.61	433.79	31.1%	63.47
1999	1,563.87	553.71	35.4%	64.61
2000	1,639.98	656.18	40.0%	65.65
2001	1,731.13	732.57	42.3%	89.38
2002	1,857.18	876.15	47.2%	91.59
2003	1,880.74	988.59	52.6%	89.63
2004	1,934.74	983.43	50.8%	100.48
2005	1,918.46	1,102.95	57.5%	134.30
2006	1,899.66	1,093.83	57.6%	142.12
2007	1,906.72	1,044.64	54.8%	168.48
2008	1,952.61	1,147.59	58.8%	192.43
2009	1,950.14	1,142.91	58.6%	179.03
2010	1,938.22	1,179.61	60.9%	185.35
2011	1,975.34	1,222.80	61.9%	206.59
2012	2,004.42	1,263.63	63.0%	242.99
2013	1,981.46	1,257.09	63.4%	220.67
2014	1,962.76	1,226.46	62.5%	211.39
2015	2,064.33	1,251.58	60.6%	205.88

	Domestic Disappearance (tonnesx1,000)	Imports as a % of domestic Disappearance	Per capita
			Carcass Weight Equivalent(kg)*	Retail Weight (kg)*
1985	748.81	2.8%	28.98	22.02
1986	728.13	2.5%	27.90	21.20
1987	726.79	3.0%	27.48	20.89
1988	751.54	1.9%	28.05	21.32
1989	783.99	1.6%	28.74	21.84
1990	723.88	1.6%	26.14	19.87
1991	724.92	2.1%	25.86	19.65
1992	804.83	2.0%	28.37	21.56
1993	792.43	2.8%	27.63	21.00
1994	823.94	3.3%	28.41	21.59
1995	814.78	3.3%	27.81	21.13
1996	769.69	5.0%	25.99	19.76
1997	760.19	7.8%	25.42	19.32
1998	865.50	7.3%	28.70	21.81
1999	914.84	7.1%	30.09	22.87
2000	880.46	7.5%	28.69	21.81
2001	897.66	10.0%	28.94	22.05
2002	871.89	10.5%	27.80	21.13
2003	794.13	11.3%	25.10	19.07
2004	857.27	11.7%	26.84	20.40
2005	743.64	18.1%	23.06	17.53
2006	762.09	18.6%	23.40	17.78
2007	826.66	20.4%	25.14	19.10
2008	794.22	24.2%	23.84	18.16
2009	792.66	22.7%	23.57	17.91
2010	750.08	24.7 %	22.06	16.76
2011	738.46	28.0%	21.50	16.34
2012	774.93	31.4%	22.30	16.95
2013	734.62	30.0%	20.90	15.88
2014	733.71	28.8%	20.64	15.69
2015	811.28	25.4%	22.63	17.20