Farms.com Home   News

COVID-19 Creates Unprecedented Gap Between Live Hog and Retail Pork Prices

HAMS Marketing Services says reduced U.S. pork processing capacity due to COVID-19 has resulted in an unprecedented spread between the value of live hogs and the price of processed pork. As the result of COVID-19 the price of live hogs has crashed while wholesale pork prices are skyrocketing.
 
Tyler Fulton, the Director of Risk Management with HAMS Marketing Services, says, with roughly 25 to 30 percent of U.S. slaughter capacity lost due to slowdowns or shutdowns of U.S. processing plants, the capacity is so short we simply can't get all of the market hogs slaughtered and processed, resulting in a market failure.
 
Clip-Tyler Fulton- HAMS Marketing Services:
 
Thankfully the Canadian market has not seen the same influence of COVID related shutdowns and slowdowns on the pork side. Of course we know that the beef side is a very different situation but, especially in western Canada, there haven't been any of the major plants that have shut down as a result of the COVID crisis so that's a great positive thing.
 
I think that those companies are taking great measures to ensure that they are able to maintain some high levels of processing capacity. Unfortunately, because of the way that the hogs are priced, we are seeing a direct influence of the U.S. market and that direct impact of that capacity reduction.
 
What's happening effectively is Canadian packers are paying based on a U.S. pricing point and the U.S. pricing point is significantly lower because of the lack of ability to slaughter the hogs.
Source : Farmscape

Trending Video

Better Farming Ontario - Proudly Serving the World's Best Farmers for Over 25 Years

Video: Better Farming Ontario - Proudly Serving the World's Best Farmers for Over 25 Years


For over 25 years, Ontario Federation of Agriculture members have trusted Better Farming as a source for information to help them farm profitably, with insights and best practices for cash cropping, soil health, pest and weed control, livestock, and farm business management.

Watch this video to learn more about Better Farming and its relationship with producers across Ontario.

Message from Better Farming:

To our OFA farming readers, thank you for your time and your trust, for 25 years now. We look forward to continuing the journey with you.