You don’t have to spend a lot of time talking to Iowa pork producers about the supply side of the industry. We know what it takes to raise a hog and get from weening to finishing. There are a lot of feed and health programs out there, you must take your pick to find the right system that works for your operation. Beyond that, we understand the economics involved in purchasing feeder pigs to finish or farrowing out the piglets for finishing. We know what happens when that truck leaves the farm.
However, where things can get a little foggy for producers is understanding what happens when that cut meat product leaves the processor and heads to the grocery store shelves. That is where we must understand what the consumer wants as well. That is why the National Pork Board, through the Pork Checkoff, is doing all it can to help producers understand those dynamics.
Glynn Tonsor is a professor of economics at Kansas State University. He talks about his role in helping producers understand the consumer.
Tonsor says that one of the best illustrations of how the market works was how things happened during the COVID-19 pandemic. It illustrates the volatility that can sometimes happen in the supply and demand relationship.
The recent inflationary period has been causing more volatile relationships between supply and demand as well. Tonsor talks about where the challenges lie.
Tonsor says he feels optimistic about how things are shaping up going into 2025.
The pandemic did get consumers back into the kitchen, and that is something that translated into the inflationary period as well. Folks learned that they didn’t need to go to restaurants to have a good meal. This has supported all the proteins, not just pork.
Next week, we will talk more with Glynn Tonsor about what he is looking for in the coming year.
