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Hog Industry Seeing High Production; Low Profits

by 5m Editor
18 April 2008, at 8:11am

US - Pork producers are going to find 2008 a tough year on profits - production is increasing faster than expected and taking prices down.

Two factors are erasing profit, says a report in Farm Future. First high feed costs, but now also a huge increase in pork production.

Gerry Bange, Chairman of World Agriculture Outlook Board is increasing his production forecast for pork in 2008 by 400 million pounds to more than 23.5 billion pounds, and increase of 7.3 per cent increase.

"What we've seen of late is an increased pigs per litter, which we believe relates to the success of the circovirus vaccine," Bange says. "Not realizing or not knowing that the circovirus vaccine would be so effective, producers actually increased their farrowings, so all of this is resulting in a fairly sharp increase in pork production in 2008."

View the Farm Futures story by clicking here.

5m Editor