The U.S. hog inventory is 2-percent larger than a year ago, an indicator that pork supplies will expand in the year ahead, according to USDA’s quarterly Hogs and Pigs report. “Consumers want pork. America’s pig farmers are delivering with excellent production performance,” says National Hog Farmer, a trade publication, citing an analysis that the low unemployment rate will mean higher earnings for American in 2018 and drive up meat prices.
During 2017, U.S. pork production rose 2.5 percent, while strong demand allowed the farm-gate price for hogs to rise 10 percent. Purdue economist Chris Hurt says the same factors will prevail in the new year: “[A] lot of demand is helping us to market more pork and even see stronger prices maybe for next year (2018).” Beef and poultry production also are forecast to rise in 2018.
Hurt cautioned, “As we get back to 220 pounds per capita [consumption] … we are going to have to match our supply increases with what the world is going to eat,” reported National Hog Farmer. The Purdue economist estimated farmers will see higher profits per hog in 2018 than in 2017.
The report said there are 73.2 million hogs on U.S. farms, with 67.1 million being raised for slaughter. Iowa continues to be the largest hog state by far, with 22.8 million head. North Carolina is second with 9 million head, followed by Minnesota with 8.5 million head.