USDA projections for US hog farming confuse the industry

Published 2023년 1월 18일

Tridge summary

The USDA's Dec. 1 hog report shows a 2% year-over-year decline in market hog inventory, but predicts a 2% increase in pork production in 2023, which has raised skepticism. The USDA also expects the average price of red meat to increase in 2023, while hog slaughter numbers and weights have varied recently due to holiday closures and weather conditions. The swine industry is considering ways to compete with beef and raise prices, with Genesus focusing on producing better-tasting pork. The article also discusses the potential challenges of genetically modified pigs, such as consumer resistance, and highlights the price discrepancy between beef and pork carcasses, suggesting that a better-tasting pork product could increase demand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The US Department of Agriculture (USDA) Dec. 1 hog report indicated that hog inventory on the market is 66.96 million, compared to 68.32 million last year. A 2% year-over-year decline. After seeing the 2% reduction in inventory, it came as a surprise to us to read the US Government's Quarterly Animal Protein Production report released last week. With inventory 2% lower than last year, the USDA production report predicts 2% more pork in 2023. You really wonder if the USDA has internal communication. There is no way that the United States will produce 4% more pork in the fourth quarter of 2023 compared to 2022. There is no scenario in the economy of this market that makes us believe that there will be a 4% growth. Negative producer margins, construction costs, feed prices, labor issues and the maintenance and disposal model were all negative. We hear about capital injections to cover embedded losses for growers and packers. This by no means leads to more pigs. Now that we've ...

Source: Suinoculturaindustrial