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Pork demand expected to remain strong

America’s pig farmers will produce a record-breaking number of market hogs this year, resulting in ample supplies of pork hitting grocery stores and restaurants. And it’s anticipated the high level of production will continue well into 2017.

Fortunately, consumer demand for pork is also expected to remain strong. Pork industry economist Len Steiner says a growing U.S. economy should bolster meat demand.

“Some positive indicators include a stock market that has hit all-time record highs in the last few weeks—and consumer confidence that remained good during a brutal presidential election,” Steiner says. “Now that we know who the next president will be, we expect consumer confidence to further increase. The American public likes certainty and dislikes unknowns.  With certainty should come good meat demand.”

Another positive, Steiner says, is the declining unemployment rate.

“Unemployment is now at 4.9 percent. The U.S. economy is at or very near full employment at this time,” he says.

Steiner added that total meat production continues to increase, moving from 90.9 billion pounds in 2014 with expectations for meat output to exceed 101 billion pounds this year. Not since the mid-1990s has meat production increased so quickly.

“We estimate that 2016 U.S. pork production will set an all-time record just shy of 25 billion pounds, with even more pork expected to be produced in 2017,” Steiner said. “The good news is that retailers and foodservice operators feel more secure about the growing meat supply, which can translate into falling meat prices and more promotional activity.”

Steiner is a principal in Steiner Consulting Group, an international economic consulting firm.  He made his comments during a recent Pork Checkoff teleconference with ag reporters.

AUDIO: Len Steiner