News

Pork profitability turns a corner

An animal protein analyst says pork producers’ profits may have changed course.

Brian Earnest, at CoBank, tells Brownfield after 17 straight months…

“Producers are back in the black after being in the red for several periods, so you know, maybe some room for optimism as we’re thinking about 2024,” he says.

Earnest says declining feed costs have been a major factor, but so has the uptick in domestic demand.

“I think in 2022 prices for the belly were just too high and it was difficult for promoters to really get behind that item.”  He says, “So, the marketing plans seem to be improving there. I think the falling belly prices have encouraged some promotional activity at foodservice.”

He says increased export demand, specifically a 7.5% increase is U.S. pork products to Mexico, has also contributed to the turnaround.

“Another thing motivating that is the strength of the peso.”  He says, “Whereas other currencies are struggling versus the dollar.”

Earnest says reports of supply moderation through much of 2024 suggests plenty of potential for improved pork profitability. 

AUDIO: Brian Earnest – lead animal proteins analyst with The Knowledge Exchange at CoBank