Pork Prices to Rise and Fall
Hog prices are expected to rise slightly this year but only temporarily according to numbers out from the USDA.
The Agriculture Department said the average price will be $1.50 per hundredweight higher than what its economists were projecting in early spring.
“Hog prices are high and we expect that to encourage more production into 2022.”
USDA Outlook Chairman Mark Jekanowski told the department’s news agency that right now projections have national production at 28.2 billion pounds with an additional 320 million expected next year. And he says prices are expected to recede about 17% next year from this year’s average $16.18 per hundredweight.
“ We have it down by about $11.43 Larger supplies into next year and maybe some softening of demand.”
Demand over the period of the pandemic was very strong according to the USDA.
Tyson Foods recently reported that labor challenges are challenging the company’s pork business. The company's COO recently told reporters it is looking at boosting wages and also investing in terms of automation and technology to try to alleviate these more difficult and higher-turnover jobs.
The company has 4 meat plants in Georgia, 2 in Alabama, and 1 in Florida.