Costly corn cuts hog producer profits: economist

by 5m Editor
11 June 2007, at 9:35am

DES MOINES - A record three and a half year stretch of profit for pig producers appears to be coming to an end due to high corn costs. But a growing export market could bolster profits in coming years, says a leading agriculture economist.

"The cost of corn comes in as the number one concern among big producers," said University of Missouri agricultural economist Glenn Grimes, who was on the sidelines at the World Pork Expo industry gathering this week.

"The odds are about 90 percent that we will see some red ink for at least one or two or three months this fall."

Surging demand for corn from ethanol producers helped drive corn prices to the highest level in a decade in February. The cost of producing hogs was currently about $7 to $9 per hundredweight higher than a year ago, Grimes said.

Source: Reuters

5m Editor