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Demand remains crucial to pork industry recovery

Ag economists are in agreement that recovery to the overall US economy will continue to play a significant role in the ability for the pork industry to rebound.

But, University of Missouri livestock economist Scott Brown says the slower than anticipated recovery to the overall economy is becoming increasingly more worrisome.  “As I think about the report it’s a bad combination of more hogs than we would have anticipated and frankly not that much adjustment in breeding inventory relative to what we would have thought,” he says. “Now against what could be a softer demand picture as we continue to go through the remainder of 2020.”

Iowa State University economist Lee Schulz says demand has been relatively strong so far.  “But it’s really just what that recovery demand-pull will be out of it,” he says.  “And looking at futures prices, I think looking further out there is a bit of optimism there.”