Livestock receipts rose 9.8 per cent in 2023: Statistics Canada

Both livestock and crop receipts experienced an increase from January to December 2023, according to Statistics Canada (StatsCan).

Livestock receipts experienced a 9.8 per cent increase in 2023, reaching $37.3 billion, while total crop receipts saw a 2.0 per cent increase, reaching $54.9 billion compared to the previous year.

The cattle industry accounted for over 80 per cent of the total rise in livestock receipts. The $2.7 billion growth was influenced by two critical factors:

• Cattle prices: Both slaughter and exports witnessed an upwards trajectory. The demand for Canadian beef remained robust in both domestic and U.S. markets. Consumers’ appetite for high-quality beef drove prices higher.
• Rising input costs: This put pressure on producers’ margins. Despite these challenges, the cattle industry contributed significantly to the overall livestock receipts.

The supply managed sectors also played a role, accounting for 40 per cent of the total livestock receipts.

Receipts from dairy producers experienced a 3.9 per cent increase, reaching $8.6 billion. Both marketings and prices worked in tandem to boost receipts for chickens used in meat production. A $292.9 million increase pushed the total to $4.1 billion.

Reflecting the reality of higher production costs, price increases across supply managed sectors contributed to their overall growth.

While cattle and supply managed sectors saw gains, hog receipts faced headwinds. In a stark contrast, hog receipts fell by 10.3 per cent, settling at $5.9 billion in 2023. Both domestic and international demand for Canadian pork waned. Consumers’ preferences shifted, impacting the hog industry significantly. The price of pork also dropped by 11.5 per cent.

On the cropping side, wheat (excluding durum) took the spotlight.

An upwards trend of $922.4 million moved the wheat (excluding durum) category forward. The driving forces behind this growth included:

• Marketed volumes: Both wheat (excluding durum) and durum wheat experienced an increase in marketings. According to StatsCan, this was a consequence of a return to normal production levels in 2022, following the severe drought that plagued Western Canada in 2021.
• Price trends: Despite a decline in prices (11.4 per cent for wheat excluding durum, and 9.4 per cent for durum wheat), they remained higher than the five-year average. This contributed significantly to the overall crop receipts.

Corn faced a decline, with receipts dropping by $469.4 million. According to StatsCan, the decline was due to domestic and international market demand for Canadian corn waning, leading to a drop in marketings, combined with an increased supply of corn from the U.S. market.

Similarly, soybeans experienced a decline, with receipts falling by $308.7 million. The dual impact of reduced marketings and lower prices contributed to this setback as well.