Industry
Drought and the impact on feed prices may be on the verge of creating a financial disaster for the pork industry and other livestock species.
In a survey of 70 large hog firms, with a total of 3.6 million sows, 17% of sows are currently housed in open pen gestation.
This should help counter a bearish Cattle on Feed Report.
But increase in pigs-per-litter rate keeps total hog numbers above year-ago.
In terms of value, beef and pork exports climb in first quarter of 2012 compared to last year.
Higher than expected slaughter, heavy carcass weights and soft demand has dampened the normal spring hog price rally.
A combination of factors has resulted in a disappointing period of financial losses this spring and summer for hog producers.
Importantly, index remains above 100 -- which still reflects expansion.
Yesterday the food super chain announced it would phase out supplier use of gestation stalls by 2022.
Says such decisions will have impacts on American farm families.
Group says food companies haven’t thought through the complexities or implications of their requests.
Says its producers are already working with animal health professionals to assure safe meat supply.
Margin changes effective August 5, 2012.
USDA says that 69,100 farms raised hogs last year, the same number as in 2010.
Says restaurant owners increasing staff in the months ahead.
Cereal supplies improve in spite of tight coarse grains.
Retail pork prices averaged $3.495 per pound last month, up 3.4¢ from December and 25.4¢ from January 2011.
Index signals growth in the industry continues.
Researchers look at how to balance pork quality with feed economics.
Says U.S. HRW wheat area also in need of more precip.
Meanwhile, Consumer Confidence Index retreats.
Total pork exports of 2.255 MMT and beef exports total 1.287 MMT in 2011.
Hog production returned to profitability in 2011, but producers remain cautious about the future.
The decline was driven by sharp falls in international prices of cereals, sugar and oils.
Outside markets supportive for commodity buying to start new year.