Producers will see sharply lower hog prices this year – down 26 percent from 2014 – due to larger livestock production, says the USDA’s Livestock, Dairy and Poultry Outlook. “Accelerating production of competing proteins – broiler and poultry production in particular, but also smaller declines in 2015 beef production – along with slowing pork exports are likely to drag hog prices down this year,” said the report. Hog prices are expected to average $54-$58 per 100 pounds, compared to 2014’s $76.03. The rising value of the dollar will constrain exports and compound pressure on prices.
Cattle, hogs and poultry dominate the U.S. livestock sector. While cattle and hog herds are expanding, so is the sheep inventory – its first upturn since 2006. The USDA says there were 5.28 million head of sheep at the start of this year, an increase of 1 percent. Colorado had the largest increase (55,000 head) while Texas, the No. 1 sheep state, had a 10,000-head decline. The USDA says lamb and mutton production in the first quarter of this year, in time for Passover and Easter holidays, will be 11-percent larger than a year ago. But it adds that the rebuilding of sheep herds will limit meat production for the year. Tight supplies will keep prices strong for slaughter lambs.