Special Report

Pork producers could see profits in 2014

At the Midwest Pork Conference earlier this week, Steve Meyer, president of Paragon Economics provided pork producers and outlook for their industry in 2014.  “It’s a very positive outlook,” he says.  “Obviously that’s getting dampened some by the death losses due to PEDv, but still a very positive outlook for the financial performance of the business next year.”

Meyer says the death loss from the Porcine Epidemic Diarrhea virus will be a positive for the markets in 2014.  “There’s no question about that,” he says.  “I mean if we take 3-4 percent off of the production and the multiplier there is usually 2-3 percent.  That’s 6-12 percent higher prices, so from the market standpoint it’s a positive thing.  We’re not in the business to lose pigs though, we’re in the business to raise pigs and keep them healthy.  Every producer wants to get a solution to this thing.”

As of Tuesday – Meyer estimates the PED virus has killed in the range of 2.1 to 2.2 million pigs.

AUDIO: Steve Meyer, Paragon Economics (3:00mp3)