High On the Hog

By Lynn Stillwell
Adapted from The Southeast Farm Press

Hog and pork prices are expected to rise to new record highs in the coming months due to higher demand, rapidly increasing feed cost, and smaller herds across the state and Nation. Corn prices have increased as much as 43% in 2010 and soybean prices have increased as much as 27%. Increased feed costs are expected to drive up live weight cost of hog and pork prices.

Hog exports are supposed to increase by as much as 10% in 2011 while the amount of hogs in the country just last year were reduced by 7%. North Carolina alone had a reduction of 90,000 head. Hog prices are only expected to increase by 14% by May of this year.

Don’t be fooled however, just because prices are going up does not mean that the farmers who took the time to grow the hog are making anymore than they were before. Most farrow to finish operations only saw a profit of $12 per head in 2010 and the industry is looking at a $11 per head loss in the first quarter of 2011 anything more farmers will be looking to sell as high feed costs are driving up the break-even point that some farms just can’t reach. We as consumers of pork products are becoming more and more conscious of what we are spending, we need to remember to support our farmers that grow the food for us and the world.