At the start of 2012 Steve Meyer of Paragon Economics said his model showed profits of close the $20 a head in the pork industry.
But, following this year’s drought pork producer’s input costs were forced to record highs. “Now if you’re looking at buying cash grain and selling cash hogs you’re looking at losses of $30 to $40 a head in the fourth quarter,” he says. “It’s been a disappointing year from that standpoint.”
Meyer tells Brownfield as he looks ahead to 2013 – things are starting to look better. “But it all depends on how much it rains next year,” he says. “We’ve had some improvement in dry conditions in the Eastern Corn Belt, the Western Corn Belt is still pretty dry. Everything we’re hearing is more normal weather next year and that should be pretty good for producers.”
Meyer made his comments last week during the National Association of Farm Broadcasting annual meeting in Kansas City.