Farm Credit Canada is forecasting another strong year for the pork sector in 2026, building on the momentum seen in 2025 as favorable feed costs, strong demand, and competitive pricing continue to support producer margins.
According to Justin Shepherd, 2025 ultimately proved to be a solid year for hog producers across Canada and North America, driven by a combination of lower feed costs and strong hog prices. Those same fundamentals, he says, are expected to carry into 2026.
Feed Costs Remain Supportive
Large global supplies of grains and oilseeds are expected to keep a lid on feed prices for much of the year, helping control one of the largest cost inputs for pork producers.
With feed affordability holding steady, producers are positioned to capture margin opportunities — provided other risks are managed.
Pork Remains the Value Protein
On the pricing side, hog futures remain strong, supported in part by record-high beef prices and a historically small North American beef herd. At the retail level, pork continues to stand out as an affordable protein option for consumers, particularly as beef and poultry prices remain elevated.
That relative value position has helped sustain demand and reinforce favorable market conditions heading into 2026.
Disease Pressure a Key Wild Card
While the overall outlook is positive, Shepherd emphasized that disease remains one of the most important factors shaping outcomes for individual operations.
PED, in particular, has emerged as a significant concern. In Ontario, January marked the highest number of PED outbreaks since tracking began more than a decade ago. Outbreaks are also being reported across both Canada and the United States, limiting the supply of market-ready hogs.
That supply constraint is helping support prices — but it also underscores the importance of biosecurity.
“There are strong margin opportunities,” Shepherd noted, “provided producers have good biosecurity and a little bit of luck in keeping disease out of their barns.”
Outlook for 2026: Cautiously Optimistic
Despite the disease challenges, the overall tone of the outlook remains positive. With supportive feed costs, strong pricing, and sustained consumer demand, Farm Credit Canada expects 2026 to follow a similar trajectory to last year.
For producers able to manage health risks and maintain production, the environment presents meaningful opportunity.
