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Slightly higher pork supplies in 2016

An ag economist says the pork industry will see slightly higher supplies in 2016.

Purdue’s Chris Hurt says the industry is estimating a 1 percent increase for next year.  “The Porcine Epidemic Diarrhea virus was the big event for pork supplies a year ago in 2014 but we’ve largely worked through that and returned largely to normal production,” he says.

Hurt tells Brownfield there was concern that record profits in 2014 would spur rapid expansion in the pork industry.  “We have not seen that and I think that bodes well for prices and for at least reasonable profitability,” he says.

He says cost of production also factors in to profits in the pork industry.  “Feed represents 55 to 65 percent of the total cost of production,” he says.  “What we’re anticipating is actually starting to see corn prices move up a little bit for 2016.  Where we’re going to get advantages in lower soybean meal prices.”

Hurt says cost of production is projected in the low $50-range – a price not seen by producers since the late 2000’s.