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Low pork profits could lead to more consolidation

The Vice President of the National Pork Producers Council says he’s concerned about how producers will manage negative margins this year.

Duane Stateler tells Brownfield the situation is not good.

“Unfortunately, I think there’s going to be some producers that are really hurting here before the end of the year,” he shares.  “We’ve stayed negative for almost 12 months out of the last 18.”

He says the current price situation is comparable to 1998 when hog prices hit their lowest levels since the mid-60s.

“I hope we don’t have a liquidation like we did back in ‘98, but the sad part of it is, when something like this happens those that we lose are the smaller ones,” he says.

Stateler says market recovery during the summer has not been strong enough to offset loses but he’s still optimistic prices can turn around by the first of the year.

Stateler contract raises 7,200 pigs in northwest Ohio.