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Profitability plunges as supply prices continue climbing

From new vaccine mandates for truck drivers crossing the Canada-U.S. border, to rail cars and cargo ships delayed by the B.C. flood recovery, to COVID-19 labour shortages, supply chain challenges in the agri-food sector have dominated news headlines in recent months. Combined with increasing inflation, cost of production for Alberta’s hog farmers is sharply on the rise.

“The past year has presented quite a few disruptions at every stage of the value chain,” said Bijon Brown, Production Economist, Alberta Pork. “Feed represents the greatest proportion of farm costs, and the price of other on-farm requirements can also have a harmful impact on producers’ businesses.”

Most recently, the price of certain pharmaceuticals has shocked producers who rely on these medicines to improve the health of their pigs.

“When we placed our last order to fill a certain prescription, the bill was nearly 50 per cent higher than when we ordered it just a while back, amounting to a few hundred dollars extra,” said Steven Waldner, who manages a medium-sized farrow-to-finish operation southeast of Lethbridge. “We have also noticed other products doubling in price by weight.”

In addition to feed and pharmaceuticals, other inputs have also become noticeably more expensive. By now, the world has been living with COVID-19 for nearly two years, and many wrinkles related to the pandemic have since been ironed out. Besides obstacles like worker absenteeism in meat processing plants or fewer goods moving across the international border, are other factors behind cost increases?

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CEOs of the Industry – International Edition Michael Agerley | Partner, IQinAbox

Video: CEOs of the Industry – International Edition Michael Agerley | Partner, IQinAbox

In this CEOs of the Industry – International Edition, we sit down with Michael Agerley, Partner at IQinAbox, to explore how data is reshaping the future of pig production.

After more than 20 years as a veterinarian, Michael shares his unique perspective on the shift from hands-on animal care to data-driven decision making across the pork value chain.

We dive into:

• How better data is improving real on-farm decisions

• The biggest opportunities still untapped in pig production

• How Europe is leading (and where it’s still lagging) in tech adoption

• The role of AI and smart systems in the next 5–10 years

• Why trust, leadership, and practical application matter more than ever

This conversation bridges veterinary insight, technology, and real-world farming, offering a clear look at where the industry is headed—and what it will take to get there.