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2012 will be marginally profitable for US hog producers

The year 2012 will be marginally profitable, projected Dr Steve Meyer, Paragon Economics, at the World Pork Expo, in Des Moines, IA, United States.

He forecasts that at the end of the year, US pork producers will have had an average profit of $5.60 per head sold to the market.

These results will be reached despite a disappointing second quarter, he said. Recent pink slime news reporting have had a negative impact for meat at consumers, leading to a soft demand. This will lead to some more and heavier pigs on the market.

Meyer expects carcass weight prices to come down to $80 or even lower – but later this year, especially in the fourth quarter, prices will come up again, making up for the whole year.

At the same time, he expects good crops as a result of good weather. This will positively influence feed prices.

Profits per head in 2011 were $4.

Related website:
World Pork Expo
 

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