Skyrocketing costs derailing expansion plans for U.S. pork producers

Jul 31, 2023

U.S. pork producers are facing an increasingly challenging economic environment that is likely to persist through the remainder of 2023. The combination of elevated operating costs and depressed hog values are evaporating producer returns and limiting overall industry growth. While hog prices have risen this summer, they have not kept pace with skyrocketing costs for feed, labor, construction, and other expenses, a new report from CoBank’s Knowledge Exchange notes.

According to the report, feed costs in 2022 alone were up 19% year over year, but hog values were up just 14% and came under pressure during the first six months of 2023. Over the long run, the disparity between hog prices and feed costs is even larger. The report pointed out that during the 12 months ended June 2023, live basis negotiated purchases of barrows and gilts averaged $67.00/cwt., up 45% from the average from 2016-2020. Comparatively, corn and soybean prices were up 78%.

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Video: Inside the National Swine Health Strategy - Dr. Dustin Oedekoven

In this episode of The Swine it Podcast Show, Dr. Dustin Oedekoven, Chief Veterinarian at the National Pork Board, explains the producer-led National Swine Health Strategy and why it is essential for improving U.S. swine health. He discussed industry collaboration, the strategy's initial priorities, why PEDV is the first focus for elimination, research initiatives, and the long-term vision for healthier herds. Listen now on all major platforms.

"The National Swine Health Strategy creates a coordinated approach that moves the entire industry toward common health goals."

Meet the guest: Dr. Dustin Oedekoven / dusty-oedekoven-bb0bb7110 is Chief Veterinarian at the National Pork Board, where he leads initiatives to strengthen U.S. swine health through disease prevention, producer collaboration, and the National Swine Health Strategy. With more than 20 years of experience in veterinary public health and regulatory animal health, his work focuses on protecting the U.S. herd from endemic and foreign animal diseases. Listen to Dr. Dustin Oedekoven on The Swine it Podcast Show, available on all major platforms.