High corn price will affect US pig production
American market experts think both pig and poultry populations will decrease as corn prices are constantly rising.
As of January 2006, corn prices have almost doubled. This is mainly due to an explosive growth of raw materials in the ethanol industry.
Economist, John Lawrence, Iowa State University, expects the total number of pigs will decrease with 10-15% should corn prices more than double.
Feed determines about 60% of US pig farmers’ production costs.