News

Pork producers expected to make a profit in ’19, ’20

A Purdue University ag economist projects margins for pork producers to improve this year.

Chris Hurt says pork prices increased after the first quarter.

“We went form about $12 a head of loss, on my estimate last year, $12 dollars of loss; to what looks like would be a little bit of profit or maybe a zero to two, three dollars of profit this year,” Hurt says.

Hurt expects stronger exports next year leading to increased profits for hog producers.

“We’ve got some profits next year,” Hurt says. “At this point, we think, might be around $10 a head. So, I think that’s encouraging. We have a good economy here in the United States to provide household income to buy pork, and of course those exports are going to be key.”

Hurt says exports will increase due to African Swine Fever in China and growth in markets such as Australia. He says pork production will likely see a moderate growth of two to three percent heading into next year.