DES MOINES, Iowa — High production costs and decreasing demand likely will translate into a rough year for pork producers.
Several other factors will also take their toll on profits, said Steve Meyer, lead economist for Partners for Production Agriculture based in Ames, Iowa. He spoke to producers at the World Pork Expo here June 7.
“Production costs are likely not going back. I’d be surprised to see anything starting with a 7,” Meyer said.
Hog numbers will also be an issue. Meyer said packing capacity this fall “is going to be snug.”
Proposition 12 will go into effect in California on July 2, meaning pork sold there must be compliant with the new guidelines. He said roughly 5 to 8% of pork previously sold into that market will have to find another destination.
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