September 11, 2012

High feed prices hurt Missouri pork producers

A surplus of hog sales and the increasing feed prices are about to bring depressing times for Missouri pork producers.

This summer's drought has caused a domino effect, increasing the cost of corn and other feed for hogs and, consequently, causing farmers to sell more animals so they don't have to feed them. As a result, hog producers are facing losses higher than they've experienced since 1998, according to experts.

The industry is set to see losses in the near term, with a Purdue University Extension economist putting the figure at US$60 a head by the fourth quarter. But cuts in production eventually will help boost hog prices and stabilise the market.