The nation’s pork producers are trying to heal after a couple of years of the worst financial losses in history.
Hog prices hit historic lows starting in 2023 causing massive losses and only moved to profitable levels the second half of 2024.
While hog prices have been improving, especially in back month futures, producers are still facing headwinds like possible tariffs, the effects of Prop 12 and disease.
Terry Wolters, is a pork producer from Pipestone, Minnesota and past president of the National Pork Producers Council.
He says optimism is returning to the industry.
“Yeah, so I think without question, lower grain inputs are a significant help to the livestock producer right now. You see the board is trading higher, cutouts been good, demand, Pork demand in general has been good and trade exports have been good. So a lot of positive things on the meat side of the industry.
In fact, U.S. pork exports have been a true bright spot.
Chase Adams, Assistant Vice President of Domestic Policy, National Pork Producers Council, says, “We’re on pace to break another record here in 2024 once the final data comes out. But $8 billion in pork exports, adding $66 to every head of hogs marketed.”
And domestic demand has also remained solid says Brett Kaysen, Senior Vice President of Producer and State Engagement, for the National Pork Board.
“We’ve been holding about that 50 to 52 pounds per capita consumption annually on pork for two decades,” he explains.
Yet, even with higher hog prices and lower feed costs, restoring the financial health of the industry takes time according to Craig Andersen, a pork producer from Centerville, South Dakota.
“I mean there were a lot of losses that to be covered before we actually start seeing profit. The pigs are profitable right now but to make up for the losses It’s going to take a while to recover from some of that,” he says.
Wolters says one of the immediate barriers to recovery is disease
“Definitely there’s been some PRRS activity in the industry. I would say, you know, the numbers that are reported to the University of Minnesota are definitely trending higher.”
Kaysen says the same trends are true nationally.
“The narrative has really shifted over the last I would say six months that PRRS and PEDV are still a challenge force and those endemic diseases continue to be a drain on the profitability curve of our farmers.”
Even though there are concerns about tariffs and trade, producers and industry leaders are still optimistic about the year ahead.
Glenn Muller, executive director of the South Dakota Pork Producers Council says,
“One thing about our producers is they’re so resilient.They’re going to come back, they’re going to find a way to survive in the meantime and this is going to give them some opportunity to back fill some of those holes created due to the poor economy.”
