The National Pork Producers Council recently released its quarterly economic update. Coming off of a strong year in 2022, many producers are wondering how 2023 will shape up to be. Holly Cook, a staff economist with the NPPC, explained the update and why it?s important to share that information.
?This report looks at the latest data and provides a snapshot of current challenges and opportunities in the pork industry,? Cook said. ?This information can be a resource for producers and industry stakeholders, but it’s also important to share with congressional leaders, members of the media, and other outside audiences to understand the issues impacting the industry. This quarter’s report covers several important topics, including consumer demand, pork production, labor market issues, and input costs. And it also looks at the positive ripple effect that the pork industry has on various sectors of the economy.?
As they consider retail prices and demand for U.S. pork, Cook said there are several factors they?ll look for in 2023.
?Consumer pork demand has been very strong over the past two years, and as we head into 2023, there are several important factors to watch,? Cook said. ?The first is that consumer real incomes continue to decline compared to a year ago due to rising prices for things like groceries, housing, and energy, and lower real incomes could lead to weaker demand for things like meat and pork. But, on the positive side, if pork remains a relatively affordable protein option, and if consumer preferences for pork products are sustained, that will be positive for demand this year.?
Labor constraints will also continue to impact pork production this year. Cook said wages on hog farms went up, but the number of open jobs is still high.
?So far this year, the available reports show that there’s still little slack in the national labor market, with very low unemployment and more than 11 million job openings in the U.S.,? Cook said. ?Data on hog farm employment specifically shows that average wages increased about 10 percent over the past year, while the number of employees was down two percent. So, given the long-term labor force projections and additional challenges that we have in rural areas, it seems that the solution to pork industry labor issues will need to come through agricultural visa reform.?
For more information, visit nppc.org.
