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More profits ahead for pork producers

A livestock market specialist says 2016 is shaping up nicely for pork producers.  Ron Plain, professor emeritus at the University of Missouri says the year started off in the red, but since then has turned positive.  “April sales showed about a $9 per head profit,” he says.  “We expect that to improve as we move on into the summer. And then, as usual profits usually get tight as we move to the end of the year.  Maybe we’ll see a little bit of red ink at the end of 2016.”

But overall, he says a positive year.  Plain anticipates profits continuing well into 2017, especially with the two new pork processing plants coming online.  “That will add to our slaughter capacity,” he says.  “That should tighten packer margins a bit and that will mean a larger share of the consumer pork dollar will likely go to the hog farmer.”

He says increased inputs costs – like feed – could cut into producers’ profits.  “Corn and soybean meal prices have been moving up,” he says.  “That adds to the cost of raising hogs.  The big thing is how summer weather, that June/July weather shapes up here in the Midwest.”

Plain says a good growing season would help to moderate feed prices.  However a hot and dry summer could drive feed prices higher, eating into pork producers’ profitability.

AUDIO: Ron Plain, University of Missouri