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Bacon shortage? Analyst says not anytime soon

A market analyst tells Brownfield consumers should not worry about a bacon shortage. Christine McCracken is the Executive Director for Animal Protein with Rabobank. She says, “Certainly, no time soon. We have plenty of pork available today. I think the concern might be as we head into 2020 and we see greater export demand out of China.”

McCracken tells Brownfield there has been a concern since a Smithfield Foods official told Bloomberg higher exports to China might impact the U.S. pork market. “I think their statements were really more to reassure the market that in fact, they’ll take care of their domestic partners first and not to worry, but there will be greater demand and that might come at a higher price.”

She says many of the pork products sent to China are not popular in the U.S. including snouts and ears.

McCracken tells Brownfield she expects healthy prices for hogs with solid producer margins next year but says the 4^th quarter now has a lot of hogs coming to market. “This is a big production part of the year as we head into the fourth quarter and things tighten up a bit, you’ll get a little bit of that back, so it’s always a little give and take. Right now, it’s working in the packer’s favor, but it will certainly reverse as we head through the year.”

McCracken says she expects bacon supplies to be plentiful now and into next year, but with prices likely to climb in 2020, consumers would be wise to stock up if they can.