FCC Economist Figures Livestock Expansion Will Take Time
Farm Credit Canada Economist J. P. Gervais expects it will take some time before we seen any noticeable expansion in the hog and cattle sectors.
Gervais says low interest rates and a depressed loonie would generally imply a favourable outlook for expansion.
Especially with significant improvements in both supply and demand fundamentals pushing hog and cattle prices to record levels.
But Gervais says hog and cattle margins are expected to tighten later this year.
He also feels COOL and the price volatility of the grain markets continue to be looming risks for Canadian livestock producers.
The FCC economist figures any expansion plans will hinge on the producers’ appetite for risk in an industry that has seen it’s fair share of financial challenges over the past five years.