Hoosier Ag Today by: Cayla McLeland
Outlook Good for the Pork Industry in 2016
Pig farmers from all across the Midwest gathered in Danville, Indiana yesterday to discuss the latest industry topics.
The outlook for the pork industry is positive and that was the message at the Midwest Pork Conference in Danville on Monday. Joseph Kerns, President of Kerns and Associates in Ames, Iowa, says another large corn crop means a more stabilized cost of production for pork producers.
“I do see 2016 as being a favorable year for the pork production community based on the price of corn and the price of inputs. That probably perpetuates itself out here for the next few years. I would use $3.75 as my inflection point under normal weather conditions. We can probably get down to $3.30, $3.40. We can run up to $4.40, $4.50 without a severe drought. But we kind of stay locked around the cost of production moving forward.”
Kerns says contrary to popular belief, the pork industry is growing and will continue to do so.
“We are, from a global perspective, very much in demand. And what we do is respected by the world and more importantly, needed by the world on a daily basis. That trend doesn’t look to be flattening out whatsoever. If anything, it is growing for the next ten years and that’s about as far as my crystal ball can go.”
With economic growth in China, Kerns says U.S. pork producers have a great opportunity ahead of them.
“If you take a look at world protein accretion and where the consumption is occurring, you’ve got to take a look at China for the pork industry. I shared that 1.4 billion people, they enjoy pork as a meat. They don’t have any religious restrictions that would prevent them from continuing to grow their consumption. Economic growth continues to roll through China. I just see it as a very fluid bed of opportunity for the American pork producer to engage in.”
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