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Kerns outlines challenges for hog farmers, opportunities in 2020

One of the biggest challenges hog farmers are facing right now is low prices, according to an Iowa-based risk management consultant.

Joe Kerns with Kerns and Associates says the influence of African Swine Fever has been supportive of pork moving at higher prices. But, he says, prices are stopping at the processing level and that is a concern.

“And I don’t blame them, they are having animals fall in their lap and are able to procure those at relatively decent value and still garner the higher prices from increased demand both domestically as well as what we’ve seen with the export side of it,” he says.

Kerns says producers should hold their breath a little longer because there will be more opportunity in 2020. 

“The optimism is real that’s built into the futures market at the same time there’s a myriad of option strategies that you can employ in order to take the profitability,” he says. “We’ve got someplace in the neighborhood of $35-$40 per pig sitting on the table right now and I do believe we have to participate at some degree

He says there are some profitable opportunities ahead and producers can reduce their risk by having some structured sales goals.

Kerns spoke at the Midwest Pork Conference in Danville, Indiana.