The nation's pork producers are largely holding back on
expansion even though the industry returned to profitability in the spring of
2011. However, higher feed prices in the past few months as a result of crop
damage in South America has increased costs and reduced the profit outlook for
2012.
The breeding herd is only 0.6 percent larger than a
year ago according to the latest USDA Hogs and Pigs report based on
surveys conducted in early March. While sow numbers are basically stable, the
market herd was reported to be two percent larger. The greater increase in
market hogs versus the breeding herd is the result of continued increases in the
number of pigs per litter. Producers also indicate they will modestly reduce the
number of sows farrowing in coming months. Farrowing intentions are down about
one percent for the spring quarter and down two percent for the summer quarter.
If intentions materialize, pork supplies will only increase by about one percent
in the fall of 2012 and early 2013. <Read More>
