Why pig farming became more profitable in 1982
Some farmers were giving hogs the heave-ho, but others were buying in
The old financial adage of "buy low, sell high" proved to be solid advice in 1982 when it came to the purchase of pigs.
"It's only a year ago that Canada's pig farmers were going out of business," said newsreader George McLean on CBC's The National on Sept. 4, 1982.
A combination of low prices and high interest rates had combined to make raising hogs a losing proposition.
But now, operating a pig farm was like having a real-life piggy bank, as reporter Paul Workman found out.
'Cheap' buy-in
Barbara Schuweiler's friends had told her she was "crazy" to go into the pig business, said Workman. But she had done it anyway.
"For the price of pigs, it was as low as it's ever been," she told Workman on her farm near Regina. "I figured that was the best time to get into it, because I got my pigs real cheap."
Pork prices had been low for three years, coupled with high fuel costs and high interest rates. Some farmers had stayed afloat only with the help of "stabilization programs," said the reporter.
Farmer Frank Mycock explained the economics of pork production
Previously pricey production
"It takes six months to produce a market hog," he said. "And then you lose $30 on it when you're finished."
"Nobody can afford to stay in business like that for very long."
That equation had forced a lot of American farmers to "cut their herds," said Workman, and that in turn had forced a hike in the price of pork at the consumer level. That's why pigs were worth the investment.
Meanwhile, the beef industry and grain farmers were now beset by the same forces that had previously plagued pigs.
"These days, that makes pigs the sweethearts of agriculture," said Workman.
