Strong Growth of Farm Cash Receipts from Livestock Projected

CANADA - Farm Credit Canada reports, based on projected farm cash receipts over the next 12 months, the livestock sector will be the hottest sector in Canadian agriculture with the hog industry expected to lead the way, according to Bruce Cochrane.
calendar icon 30 August 2017
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Farm Credit Canada's agriculture sector snapshot, released yesterday, considers various factors that will influence cash receipts for agriculture commodities over the next year, including prices, production, demand and export opportunities.

J.P. Gervais, Farm Credit Canada's Chief Agricultural Economist, says cash receipts for hogs are forecast to climb by 12 per cent over the next 12 months, for cattle by eight per cent and for poultry by seven per cent, the result of higher production and pricing that is better than what we'd seen in 2016 influenced by strong global demand for proteins.

J.P. Gervais-Farm Credit Canada

Projections for hog cash receipts are up 12 per cent over 2017 and 2018, so the next 12 to 18 months, and I would say basically driven by both stronger prices as well as stronger production.

We've had strong production growth because of the demand that keeps on climbing in the pork market, especially outside of our borders where we recorded strong demand for Canadian pork projected to continue and the limited availability of hogs in the North American market actually sort of signals that we can expect higher prices than what the five year average has been recently.

Over all better pricing compared to what the five average has been over the next 12 to 18 months as well as continued growth in production should actually result in about a 12 per cent increase in the next 18 months.

Mr Gervais observes the demand for protein continues to climb, populations continue to grow and the world economy is rebounding.

He says income is growing and the global middle continues to expand and at a higher rate and has not yet peaked and all of that is creating real demand for animal proteins.

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