Wednesday, December 11, 2019

Pork packers enjoying profits

Pork packers are making a lot of money this December.

Export demand, mainly from China, has allowed packers to increase pork prices.

On the supply side, there are so many hogs coming to market that there is barely enough capacity to slaughter them all.

Normally that would depress hog prices, but packers are making such good margins that they are willing to buy all the hogs farmers are shipping. Margins now are more than 13 per cent better than a year ago.

The United States has been a major beneficiary so far with pork exports increasing by 12 per cent in November. Canada is poised to start catching up now that China has lifted its ban on Canadian beef and pork.

That ban went into effect when more than 170 falsified export certificates were identified.