A study of the key factor promoting the international division of labor of the hog industry in Canada and the united states
2007
Oe, T.(Meiji Univ., Tokyo (Japan)) | Bannai, H. | Matsubara, T.
Recently the hog movement has been expanding rapidly in North America, with Canada specializing in breeding feeder-pigs for shipment to the United States, resulting in many feeder-pigs being imported from Canada to the United States. Right now Canada is one of the main suppliers of feeder-pigs and it is also the largest supplier of feeder-pigs to Iowa, which is the largest hog producing state in the United States and is also the largest state for import of feeder-pigs. Therefore Canada plays a very important role for the hog movement in the United States and Iowa. Behind the international division of labor of the hog industry, in which Canada specializes in breeding while the United States imports feeder-pigs from Canada which are supplied to US hog producers specializing in feeding with very cheap feed, we found one key factor promoting the division of labor with depreciation of Canadian dollar against US dollar and the high efficiency of breeding in Canada. That factor is a contract presented by US brokers who are involved in pig procurement. The contract contains a floor price that can make ensure profitability of feeder-pig production and has promoted its expansion in Canada.
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