January 13, 2006

US pork industry expects lower prices

Higher US pork production in the fall and winter quarters of 2005 put downward pressure on pork prices, according to USDA.

USDA expects fourth-quarter 2005 pork production to reach 2.54 million tonnes, up by about 2 percent from the same period in 2004.

Lower US consumer demand for pork products and seasonally higher hog numbers caused slaughter pig prices to fall year-on-year.

USDA said that wholesalers, reflecting weaker consumer demand, made lower bids to packers for pork products. In turn, packers responded by lowering prices paid for their hogs.