US pork output sees downturn in next two quarters

 

 

Tough financial conditions for pork producers will continue for at least the next six months, with expected decreases in Minnesota's pork production.

 

According to the University of Minnesota Extension Service (UMES), estimates show that hog producers are losing an average of almost US$31 per animal in 2009. Thus far, 2009 is shaping up to be even worse than 2007 and 2008 - the longest period of continuous losses for the modern pork industry.

                                   

UMES expects improvements for pork producers by July 2010, adding that that some public policy responses could help pork producers weather the short-term crisis, which include:

 

Providing capital or loan guarantees to agricultural lenders to support competitive pork producers.
 

Providing mediation for pork producers. There is a real need to train and attract more professionals to serve as farm mediators.
 

Expanding educational programs in marketing and business planning. Many producers with the necessary marketing skills have done quite well. However, those who do not have had large losses.
 

Instigating pork purchasing programs for school lunch and food shelf aid. At a time of high demand for food assistance programs, it would seem natural to purchase pork to help support unprecedented needs based on 10% unemployment rates and declining personal incomes.