Picture For Pork Producers Improves

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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAn analysis from a Purdue University agricultural economist says pork producers could see modest profits in 2016. Chris Hurt says smaller hog breeding herds and lower production costs could lead to better results for producers.
Hurt’s analysis of the U.S. Department of Agriculture’s March Hogs and Pigs report forecasts a slight slowdown in pork production after two years of expansion. He says the USDA report shows pork producers intend to reduce the number of sows farrowed by one percent this spring and three percent this summer.
"For right now, the industry seems to have supply in alignment with pork demand such that prices cover the full cost of production," said Hurt. "If they follow through on these intentions, then pork supplies will be smaller than previously anticipated next fall and winter. Smaller anticipated supplies will likely boost price prospects."
Hurt is projecting live hog prices to cost about $1 higher than last year, in the $49 to $54 per hundredweight range. Average production costs are expected to drop to about $50 per hundredweight in 2016, which would be their lowest levels in nine years, according to Hurt.
Hurt adds that feed prices could increase if the weather is harmful to growing crops in the U.S. You can read Hurt’s full analysis by clicking here.