Did you know that the pork industry supports 613,000 jobs, $36 billion in personal incomes and $57 billion in value added based on 2021 levels of production?
“The economic contributions of pig farming reach well beyond the farm,” the National Pork Producers Council (NPPC) reports in the NPPC Economic Update Q1 2023 which summarizes key pork industry market indicators through January 2023. “These numbers represent the ripple effect that hog production has on the U.S. economy through its backward and forward linkages to other industries. Backward linkages include the purchase of inputs, supplies, trucking and other services, while forward linkages are tied to hog slaughter and pork processing.”
Of the 613,000 jobs supported by pork production:
• 28% are in the service industry
• 26% are jobs in manufacturing
• 20% are within agriculture
• 10% are in wholesale and retail businesses
• 8% are transportation and utility jobs
• 7% are accounted for in finance, insurance, real estate, construction and other industries
The chart above shows the pork industry’s contribution at an eight-sector level of detail. The number of jobs in each sector represent what could be lost if the pork industry was removed from the U.S. economy, NPPC said.
Other takeaways highlighted in the report include:
- After declining 2.5% in 2022, USDA projects growth in pork production for 2023.
- Domestic pork demand has been exceptionally strong over the past two years, which has helped support hog values at the farm level. Continued strength in 2023 will depend on several factors.
- Retail pork prices increased by 1.5% from December 2021 to 2022.
- The cost of raising pigs was record high in 2022, increasing 21% from the previous year. NPPC said it will likely remain elevated in 2023.
- Labor market conditions and changing demographics are exacerbating the rural labor shortage.
“The U.S. pork industry is a pillar of the U.S. economy, supporting jobs, sales, and value-added activity throughout the pork supply chain,” Lori Stevermer, NPPC vice president and pork producer from Easton, Minn., said in a release. “It is important to raise awareness of the economic contributions made by pork production and highlight the current economic and policy issues impacting producer success.”
Editor’s Note: NPPC released a national and 22 state-level economic reports last year. These reports highlight how the pork industry contributes at a grassroots level and illustrate the breadth of the industry producing affordable, safe, and nutritious pork for consumers worldwide.
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