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Pork Margins Tight for 2016

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It looks like another year of tight margins for pork producers according to Purdue University Extension economist Chris Hurt.

2016 pork production is expected to rise by about a percent, but beef will go up four percent and poultry by three percent.

Hurt says that means there will be much more meat for consumers causing retail prices to fall. The future of the U.S. pork industry also looks grim with weak income growth from the global marketplace.

Topping it off is the strong dollar, encouraging more pork imports and competition.

Hurt predicts this year margins will be in the negative. With average losses at about four dollars a head and large differences per quarter. Losses at near $16 a head in the first and fourth quarter and profits of eight bucks a head in the second and third quarters.

He suggests any more expansion in the pork industry will lead to more losses.