Canada's exports of live pigs have collapsed by 43% and 1,000 farms have shut up shop in the latest twist of what has been called the industry's worst ever financial crisis. 

Shipments fell to 1.7m pigs in the first three months of the year - ahead of this week's swine flu outbreak - from about 2.9m a year before, Statistics Canada said.

The fall in exports reflects in part a surge to a record high a year before, when Canadian farmers flooded the US market to beat the introduction of America's so-called Cool regulations which mandate produce labels to show country of origin.

However, Statistics Canada also highlighted "high feed costs" and "soft slaughter prices", which have prompted farmers to downsize herds or quit.

The national pig herd shrank to 11.9m animals, down 8.6% year on year and more than 20% below a 2005 high, the report said.

Hog farm numbers fell to 8,300, with "several hundred producers" signing up to a government subsidy scheme to quit.

Prices slump

Analysts trace the start of Canada's pig-farming woes to 2006, when the race for Canada's mining resources sent the Canadian dollar soaring, so reducing the competitiveness of its exports. Historically, Canadians have consumed less than half the country's pork production.

Rising feed and energy prices from 2007 provided a second blow to farmers, with last year's economic downturn adding further pressure.

Slaughter prices in Manitoba fell by one quarter between August and December last year.