Hog farmers who were hoping for a rebound after years of poor prices have seen prices drop even further, and they are blaming bad publicity from the H1N1 swine flu virus.

There are only about 30 hog farmers left on P.E.I.There are only about 30 hog farmers left on P.E.I. CBC)

Prices for the month of June were 15 per cent lower than last June, and they were below the cost of production last year. Despite the fact there is no chance of contracting flu by eating pork, hog farmers believe people are avoiding the meat because of that fear.

"The H1N1 virus has undermined any potential for near future gains. The situation on farms right now is, the best terminology I could use, is that it's desperate," Tim Seeber, executive director of the P.E.I. Hog Commodity Marketing Board, told CBC News Friday.

"If there is nothing forthcoming from the federal government or the provincial governments in the very near future, then there is going to be a lot of farm closures and people being forced to close their operations and likely lose everything."

Seeber said there are only about 30 hog producers left on Prince Edward Island. There were 400 in 2002.

The situation is bad across the country, but Seeber said Island farmers feel the impact of a poor market first because of the higher cost of production.

He does not expect to see any improvement in price before next year.