The North American pork industry is on pace to suffer the most damaging financial year ever, even worse than 1998, when market hogs sold for less than 10 cents a pound.

"We estimate losses of $27 per head on average for 2008 for farrow-to-finish operations and those taking the market risk," Purdue University agricultural economist Chris Hurt said. "That compares with the worst previous year of 1998, where our estimates showed an average loss of $15 per hog."

In the last quarter of 2007, pork supplies were up 10 percent and the excess supplies continued into 2008, with production up 11 percent through March 1, compared to last year, Hurt said.

Hog prices in January and February of 2008 averaged near $40 per live 100 pounds, but production costs for farrow-to-finish were estimated at $54.