US hog industry struggles

The US industry continues to struggle. Hog prices below cost of production is putting a major financial stress on much of the Pork sector. There will be significantly fewer pigs year over year by the end of 2023 and even fewer in 2024.

Our Observations

• Major sow liquidation is underway which will decrease the U.S. sow herd by 4% – 200,000 – 250,000 sows in our opinion. A reflection of the economic conditions but also the ongoing health issue problems that over and over lead to decreased production and spikes in cost of production.
• There is a challenge to get sows marketed currently a combination of large numbers and pork market conditions with sow mortality industrywide of 14 -15% slowed gilt placement due to market in itself will cut the sow herd.
• We have seen many hog price debacles in the time we have been in business. The scenario today seems somewhat different. Why?
• In other price collapses we dealt usually with spiked hog production. Year to date the U.S. has produced 1% more Pork than a year ago. With Beef production down 4.9% year to date total Red Meat production is down 2.0%. Certainly not significantly more Pork and a lot less Beef.