The second tender of the Hog Farm Transition Program (HFTP) was held Wednesday, December 9 and preliminary results have been approved by the Program Administrator and an independent third party scrutiniser.
In order for bids to be compared among all types of animals and facilities, a system to equitably compare bids was developed. Using this system, each total farm bid submitted was converted to a dollar per “animal unit equivalent” or AUE.
Of the total 469 bids submitted, 115 bids were accepted before the $24 million allotted to this second tender was allocated. A total of $24,504,418.15 will be issued to successful bidders under this tender. Lowest bids were accepted first, followed by successively higher bids until the funds for that tender were exhausted.
Second tender results are as follows:
Weighted average of 115 successful bids: $872.91/AUE
Low bid: $370.00/AUE
High bid: $1,034.23/AUE
The second tender removed the following inventory from production for the next three years.
Weaners to 30 kg: 99,469
Hogs from 31 kg to market weight: 123,654
Results from the first tender reported on November 9, 2009 have been adjusted slightly to reflect the outcome of appeals filed subsequently and are now as follows:
Adjusted first tender bid statistics:
Weighted average of 75 successful bids: $ 767.28/AUE
Low bid: $300.00/AUE
High bid: $997.00/AUE
Adjusted first tender Inventory statistics:
Weaners to 30 kg: 45,664
Hogs from 31 kg to market weight: 60,903
Funds of $25 million have been allocated to the third tender for the Hog Farm Transition Program to take place on January 20, 2010 at 2:00 p.m. EST. Producers that are not already registered are encouraged to submit their registration forms no later than January 13, 2010 for this tender window.
A date for the fourth and final tender offering the remaining funds of approximately $15 million has not yet been set but will be announced in January. The $75 million Hog Farm Transition Program is funded by Agriculture and Agri-Food Canada and administered by the Canadian Pork Council.
Registration forms for the Hog Farm Transition Program are available from the Canadian Pork Council at www.cpc-ccp.com. Producers need only register once to be approved for all program tendering opportunities but must submit a new bid for each tender date.