Pork Producers Place Brakes on Expansion
US - Back during the summer when the price of corn was forecast at $3.50 per bushel, pork producers were making plans to expand, but with the price of corn much higher, Chris Hurt, Purdue University ag economist tells Brownfield the pork industry is getting some very clear signals.
21 September 2010
2 minute read
"I think the signal has been sent, particularly after the September crop report, we'd better put those plans to expand on hold," said Professor Hurt. "The message that is very clearly coming through is that corn is not going to be $3.50 and we may even struggle to keep it at $4.50."
Citing Brownfield AgNews, AgriMarketing reprts that Professor Hurt says that if expansion does take place, by late 2011, pork producers can expect to be back losing money.
"You avoid expansion at this point, you sit on your hands, keep producing the amount of pork you produced in 2010 and you're gonna be able to pay $4.50 to even $5.00 for corn all the way through 2011," Professor Hurt said.
Chris Hurt presented his outlook at the 2010 Midwest Pork Conference on Wednesday, 15 September.
