Falling Pork Prices Good News For Consumers
Recent trends leading into the initial weeks of 2015 have seen a significant increase in the growth of the pork industry. This upward shift is a reversal from last year, when an epidemic virus claimed the lives of many piglets in hog herds nationwide. The health of farm-based herds has since rebounded, and this resurgence, combined with cheaper feed prices triggered by recent bumper crops of soybeans and corn, is translating into both more and larger pigs. In fact, the average size of pigs raised for pork is up this year by some eight pounds per pig.
This is all very good news for the pork industry and bacon fans, with all indicators pointing to an increase in pork supply and falling costs for buyers. After dealing with record high pork prices in 2014 due to the epidemic-related drop in supply, large-scale buyers such as Hormel and Dominoes Pizza are now enjoying lower prices, and prices may continue to drop.
Indicators pointing to a sustained increase in pork supply are currently looking very favorable. On December 23, the government revealed that the hog population reached its largest numbers in five years, up 2 percent over the year before. Additionally, pork production is up substantially by 4.6 percent, and demand is up as well. In the face of record high beef prices, consumer demand for pork is outpacing beef and is projected to soon surpass beef in the production category. It is estimated that pork production this year will reach a record of nearly 24 billion pounds, while beef will drop in production some 1.7 percent.
The overall trend in production has brought pork prices significantly lower, dropping them by 11 percent in January on the Chicago Mercantile Exchange. Overall, wholesale pork prices are down by over 40 percent since last July. These tumbling prices on the trading markets will likely translate into significantly lower consumer pork prices in the grocery store throughout 2015.
While market experts aren’t sure how long the lower prices can be sustained, what is certain is that pork products are enjoying greater appeal across America, and this trend is encouraging to hog farmers, some of whom are responding by continuing to expand their operations. For the foreseeable future during 2015, pork looks to continue its run of good fortune.
Tags: 2015, commodities, consumers, decrease, decreased, demand, falling, farmers, hogs, industry, lower, market, pork, prices, supply, trend
This post was written by Bacon Babe