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Future Looking Up for Hog Producers


In June – according to Iowa State University’s profitability index – hog producers had their first profitable month since July of 2012 – turning a profit of $10.92 per hog. University of Missouri Economist Ron Plain calculates the U.S. hog industry lost three-billion dollars last year – based on an average loss of $31.08 per hog over the 10 months ending in May. Many expect a brighter year and more profit due to a change on the cost side of the business. Despite a slightly smaller corn harvest number than traders expected in USDA’s latest Crop Production report – the department still forecasts a record crop.


Purdue University Livestock Economist Chris Hurt says hog producers can see the promised land in corn prices that are going to come down sharply in the next 30 to 60 days. He estimates the total input costs to finish pigs to market weight will drop to about 55-dollars per hundredweight in the fourth quarter of this year – down from about 69-dollars during the second quarter. Barring any unforeseen weather interruptions – Hurt notes that would be the largest drop on record.


Source: NAFB News Service