Profit, affordable feed and new packing plants all contribute to expanding supply
By Kaitlynn Anderson
Hog supplies are plentiful in the U.S., according to the most recent USDA Quarterly Hogs and Pigs report.
As of September 1, there was an inventory of 73.5 million head for all hogs and pigs in the country. This number is an increase of 3 per cent from June 1 of this year, according to the report.
Source: USDA Quarterly Hogs and Pigs report, September 28, 2017
For the first three quarters of 2017 – March 1, June 1 and September 1 – hog and pig inventories have increased from 2016 levels, both for those kept for breeding and for those sent to market, according to the report.
Analysts believe that this high inventory is due to strong profit levels, more affordable feed and the use of several new pork packing plants, according to a Thursday article by Reuters.
Of the five new packing plants, four are already in operation.
While current supplies show growth in the sector, analysts warn that there will need to be a strong level of demand, both domestically and internationally, to accommodate these record numbers, according to the article.
Regardless of whether this demand is met, consumers could have access to lower pork prices throughout the beginning of 2018, according to the article.
Farms.com has reached out to AMS for comment.