January 8, 2007

US pork association concerned about 2008 pork profitability

Corn demand has resulted in pork profitability concerns for 2008 and beyond, according to the US National Pork Board (NPB).

The orgnisation fears that the increased demand to corn as a result of ethanol legislation would increase corn prices, and eventually US pig prices too.

Steve Meyer of Paragon Economics said that the roughly US$1.50 per bushel increase in maize prices in recent months has increased pig production by roughly $20 for each 115 kg market pig.

2008 is a year of concern as most pigs to be harvested in 2007 is already available.

The "food vs fuel" issue would be an issue the NPB would be taking up at its first meeting of 2007.