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Inflation, consumer demand factor into higher retail pork prices

Despite a more than 30 percent increase in retail pork prices over the last couple of years, demand for pork has remained steady.

Jayson Lusk is the distinguished professor and head of the ag economics department at Purdue University.

He says inflation is driving prices higher.

“More money floating around in the economy is reducing the value of each dollar and that probably explains about half of that 31 percent price increase,” he says.

And, Lusk says there is still strong consumer demand for pork and that’s helping support prices for producers.

“The data suggests consumers are willing and able to pay more for pork,” he says. “That’s probably also contributing about half of that remaining price rise.”

He tells Brownfield the higher prices received help offset increased production costs.  

“Feed costs for pork producers have risen dramatically over the last couple of years and that’s factored into higher pork prices for consumers,” he says.

Brownfield interviewed Lusk during the Midwest Pork Conference in Lebanon, Indiana today.

Audio: Jayson Lusk