U.S. pork outlook addresses production challenges, labor issues

Published 2023년 2월 15일

Tridge summary

The National Pork Producers Council (NPPC) report indicates that the US pork industry is experiencing a decline in production due to high costs, labor shortages, and animal health issues, leading to increased pork prices and reduced availability. Despite these challenges, demand for pork remains strong, driven by consumer preferences and the price of other proteins. However, high inflation, unemployment, and housing costs could impact demand in 2023. The shrinking hog herd is expected to cause a slight increase in production in 2023, but high costs and market volatility are expected to keep breakeven prices elevated. The industry also faces challenges in finding labor, with the median age of rural workers increasing and the rural workforce declining. The NPPC is advocating for ag visa reform to address these labor shortages.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With domestic demand for pork continuing to demonstrate positive growth for the past two years, on-farm hog values have remained positive, but that continued momentum hinges on inflation rates, job creation and hourly wages, pork price trends and domestic consumption. Based on US pork production declining after a record-breaking 2020, pork prices and domestic availability for pork resulted in lower demand at the end of 2022, although still strong when considering five-year averages. “Going into 2023, factors like rising interest rates and high prices for housing, groceries and other items could further reduce real and disposable incomes for consumers, which could contribute to weaker pork demand,” the NPPC report said. “Factors that may support pork demand include the price and availability of other proteins and consumer preferences for pork products.” According to statistics from the US Department of Agriculture (USDA), US pork production was just over 27 billion lbs in 2022, the ...
Source: Meat+Poultry

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