Thursday, December 28, 2006

Register Foresees Decline In Hog Prices

Today's Des Moines Register foresees that there is an increase in pork production in the state that may push prices down in the not too distant future. Agricultural economist John Lawrence of Iowa State University gives figures that suggest that although pork producers have made money in the last three years, increases in the cost of feed and new productive capacity coming on line will produce red ink for hog farmers in the near future.

It's sobering reading. Although it is not known what effect this might have on niche producers, certainly the price they receive for product that is spun back into commodity pork will net them no more than the industrial operators will get, and that's going to hurt.

Stay tuned.


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