Reduced supplies and increased prices 📉Aug 23, 2022
USDA economist Mildred Haley remarks that the hog market in 2022 is likely going to be characterized by reduced pork supplies with continued sharply higher pork prices.
- So far this year, slaughter numbers have been lower and have kept production below the levels of those earlier this year, while carcass weights have averaged higher.
Haley said lower seasonal production is not atypical for mid-to-late summer months but is significant from a demand perspective: consumers typically increase pork consumption during travel, vacations, and holiday events. And here are some forecasts, so you know what to look forward to:
- In 2022, Q4 pork production and hog prices will continue to support the scenario of reduced production and higher hog prices.
As for the first half of 2023, Q1 production is expected to increase and hog prices will also rise, while Q2 production is expected to be lower, and prices higher.