Ag in the AM: Commodity Price Spike Hurts Hog Farmers
CHICAGO, Illinois – Higher commodity prices are good news for corn and soybean farmers but could be very damaging to pork producers.
Purdue University economist Chris Hurt says hog farmers can expect to see a 45-percent hike for corn and a 28-percent hike for soybean meal in the coming winter months.
Those higher feed costs, he says, will be absorbed by pig farmers who will see a much smaller profit in the months to come.
Worse yet for the hog industry: the high commodity prices could remain well into 2013.
Adding to the diminishing profit line, Hurt says the increased slaughter this summer and fall will tend to increase production, dropping prices for hog producers.