Cost of production
The Canadian commercial feed market grew over 20% in 2022, reaching a record $11.5 billion in sales.
U.S. milk glut keeps a lid on Canadian blended prices, but quantities are up – and should stay elevated as the race to replenish butter stocks continues.
Feed costs and demand strength lead profitability uncertainty in our 2023 Cattle and hogs outlook update.
Despite uncertainty about weather impacts and the Russia-Ukraine conflict, major crop sector profitability should remain positive over the outlook period, with continuing strength of prices and decreasing farm input prices.
The cattle sector features margin upside while Canada’s eastern hog sector deals with the Olymel plant closure.
Building an efficient potato storage facility is effective risk management and key to supporting and protecting the grower’s investment.
Dairy revenues have seen a small boost. However, input costs — particularly feed costs — will remain elevated for most of 2023.
Slowed growth in farm input prices and continued tight global supplies of major crops will offset an expected drop in crop prices to keep crop margins profitable in 2023.
The FCC 2023 dairy outlook suggests production and price increases will lift dairy revenues in 2023, but the sector faces headwinds that will challenge profitability.
Driven by the unsuppressed global demand in 2020 and 2021, the story of 2022 was one of inflation, and the interest rate hikes intended to manage it.