2026 Hog outlook: Second consecutive year of strong margins

After an unexpectedly strong 2025, things continue to look positive for the Canadian hog sector starting off 2026. Hog futures prices are near 5-year highs and are well supported. After several years of weaker demand and oversupply globally, the hog market has become more balanced. With lower feed costs relative to a few years ago, margins look to remain well supported for producers.

Disease continues to be a concern for producers all over the world, with many pork producing regions dealing with outbreaks of African swine fever (ASF), porcine epidemic diarrhea (PED), and porcine reproductive and respiratory syndrome (PRRS). If Canada can continue to keep PED and PRRS under control, and keep ASF out of the country, producers can feel optimistic given strong hog prices and manageable feed costs. In this outlook we examine what margins are expected to look like for the year ahead and what domestic and international demand looks like for Canadian pork.

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