October 29, 2010

Rising feed costs may lower US hog slaughter in 2011

University of Missouri livestock economist Ron Plain reduced his forecast for the US hog slaughter in 2011 because of rising feed costs.

Meatpackers will process 110.2 million hogs next year, up 0.5% from an estimated 109.6 million in 2010, Plain said, adding that he had forecast a 1.1% increase.

He noted that corn is getting expensive, as the cost of the grain has surged 38% this year. Hog kills will still increase because the sector remains profitable, he added.

Hogs in Iowa and Minnesota will range from US$73-76 per carcass hundredweight, Plain said. The negotiated base price will be US$73 per carcass hundredweight in 2010, he said.