Pork producers have had a very tough year when it comes to the prices they’ve been getting paid for their products. The oversupply issue we saw come out of the 2020 pandemic really hasn’t settled down too much. Recently, Rabobank looked at some data that shows we could be looking at an upcoming decline in pork production. Productivity gains have offset herd reduction efforts while margins remained under pressure, according to their Q4 report.
Christine McCracken is the senior animal protein analyst at Rabobank, and she highlights some of the facts found in the report.
McCracken says that the oversupply of pork is pressuring producers to start cutting back on their production.
Just like with any other commodity and business, inflation has become a high factor in the pork industry. The products’ cost at the meat counter is much higher in proportion to the price being paid to the producers.
McCracken says that based on the data that Rabobank has analyzed, they’re predicting smaller pork herds going into 2024.
