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More optimism in the pork industry for 2017

A livestock economist says there’s a little more optimism in the pork industry this year.

Purdue University’s Chris Hurt says hog prices are expected to rise – despite a projected three percent increase in pork production.  “The national production is about at the level that we can sell at a price level that covers all costs of production,” he says.  “That’s kind of a rare event in any industry it seems like.”

He tells Brownfield prices will be supported by stronger domestic demand as the US economy continues to grow and a projected 8 percent increase in exports.  “When consumers have more money in their pocket, when they are more confident as they have been early in ’17,” he says.  “They’re willing to shell out a little more of that money for meat and obviously some of that goes to pork.”

Hurt says lower input costs will also contribute to a better bottom line for pork producers.  “I’m looking at total feed costs with lower feed prices gaining efficiencies over the years – being at the lowest for feed costs in 10 years,” he says.

He says currently all signs are pointing to a good year for pork producers – but any shifts to demand, input prices, or unexpected growth could send the industry back into losses.

AUDIO: Chris Hurt, Purdue University