February 13, 2006

High slaughter numbers drags down live hog prices in US
 

High hog slaughter numbers, coupled with low chicken prices in the US have caused live hog prices to tumble over the past two weeks.

Livestock Economist Brad Marceniuk estimates that at current prices, producers are losing US$10 to US$20 with each hog they sell.

More hogs had been slaughtered than expected with slaughter numbers over the last four weeks about 2.8 percent higher than over the same period in 2005.

Slaughter weights have also been higher than in 2005 which, when combined with higher slaughter numbers, have increased total pork production and supply by about 4.5 percent over the last four weeks compared to the same period in 2005.

Demand for pork has also fallen due to increased competition from lower chicken prices. US chicken stocks have increased significantly over the last year and current chicken prices are priced way below market value.

A rebound in hog prices is expected in spring as US hog production and slaughter numbers are reduced, Marceniuk said.