Ag Economist Updates Producers at World Pork Expo

Leading Ag Economist Glenn Grimes gave pork producers at World Pork Expo an update on pork production economics - saying hog producers face at least another year of financial loses. He says the hog industry needs a cutback of five to ten-percent in the country’s sow herd to boost hog prices. Grimes told producers they aren’t getting the hog price increase they normally do this time of year - attributing some of that to the non-swine flu that has impacted consumer demand for pork.

This is making it rough on producers who have to downsize the hog herd and – according to Grimes – break-even prices for this summer will probably be in the low 50-dollar per hundredweight range. He says hog producers would be in better shape if corn would be two-dollars per bushel instead of four.

Grimes says the U.S. hog industry has to downsize. Producers hoped prices could get to around 80-dollars per hundredweight by now - but the market isn’t going above 60 - with the June futures price contract closing down on Wednesday at roughly 57-dollars in trading. But Grimes does believe the industry will be looking at financial recovery in a year and hopes hog prices will be profitable at that time.