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Optimism for more growth in the pork industry

 

 

There’s still room for growth in the pork industry as new processing plants increase production.

Michigan Pork Producers Association President Bob Dykhuis raises 18,000 sows in southwest Michigan and northwestern Indiana as part of his farrow to finish farm.  He tells Brownfield there is healthy growth in the region as hog farms in the Eastern Corn Belt continue to expand with the new Clemons Food Group processing plant, “It certainly has excited the industry as far as in Michigan, Indiana, Ohio area. There is definitely growth going on.”

He says while packer margins have tightened a bit, there has been opportunity to capture good margins this year, “There’s another plant being built in Iowa and then the three plants that will be new are all talking about double shifting and so there will be quite a bit of additional slaughter capacity.”

Dykhuis says pork production could increase by as much as six percent this year and so far, consumer demand has kept prices at profitable levels.

Dykhuis spoke with Brownfield during the Michigan Pork Conference in Lansing.