Thursday’s hogs and pigs report confirmed continued expansion of the hog industry. But two pork industry analysts say as long as the demand for pork stays strong, the industry should be in good shape.
“What it’s telling me is that the industry is growing, but it’s growing at a measured pace,” says Altin Kalo, senior analyst with Steiner Consulting Group. “By doing that, it’s avoided some of the pitfalls of the past where we used to have very large expansions and then very large declines as well.”
University of Missouri livestock economist Ron Plain says the industry is “alive and well”.
“Profits aren’t remotely close to what they were in 2014 and we’re going to have some red ink here at the tail end of this year,” Plain says. “But, by and large, the industry is profitable and we’re growing. Demand is good and the export outlook looks good.”
Plain says increased slaughter capacity and the prospect for continued low feed prices should keep producers profitable again in 2018.
(From Brownfield Ag News)