Economist Says Pork Industry Had A Profitable Year In 2017
Radio 570 WNAX (SD)
Jan 12, 2018
2017 was a profitable year for the pork industry, and that includes both processors and producers. Dr. Steve Meyer is an economist with Kerns and Associates. He says profits for pork producers in 2017 far exceeded expectations at the beginning of the year, even with record hog supplies.
Meyer says strong demand for pork, both domestically and internationally, was the main driver of the higher prices, which allowed producers to hedge at above break even levels.
He says the key for 2018 is whether that demand will continue to drive cash hog prices, since the lean hog futures are already pricing it in. And with summer futures in the low to mid-80s he suggests producers hedge at these levels...
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