June 28, 2007

Larger US hog herd expected thanks to disease control measures
 

Successful control of swine diseases which has plagued the industry for more than a year has probably resulted in a slightly larger US hog herd, analysts said.

Livestock analysts expect USDA Hogs and Pigs report, to be releases later this week, to indicate a larger hog herd than a year ago.

The US swine industry has been hit by circovirus, for the most part of a year but thanks to vaccines, the disease appears to have come under control.

Smithfield Foods Inc the largest US hog producer, has announced it was using vaccines after the disease reduced its hog available to the market by 6 percent during its fiscal year ended April 29.

Although profits were decent in the past quarter, most farmers would have had to use the extra money to pay for corn, which are getting pricier. Farmers would have to practice better herd and disease management if their herd is to grow.

Analysts also expect profits to continue the rest of the year, despite high corn prices.

Higher hog prices also attracted more feeder pigs from Canada to be brought into the US.

Better herd management are also expected to increase the size of average pig litters.

Still, others have their doubts over farmers willingness to raise hogs at a time of high corn prices. With current high corn prices, the average producer can be expected to be losing money in the fourth quarter, said Glenn Grimes, a University of Missouri agricultural economist.

Pig producers who also grow corn would likely cut production and sell whichever is more profitable later in the year, Grimes said.