By Farms.com
As we step into 2024, hog producers find themselves navigating the aftermath of a challenging 2023, with cautious optimism for slightly improved conditions. However, the resilience of the industry is tested as economic headwinds continue to prevail, according to warnings from Iowa State University Extension economist Lee Schulz. Projections indicate the possibility of the industry undergoing its least profitable two-year period.
While 2024 holds a promise of being less dire than its predecessor, the looming presence of financial strain remains undeniable. Schulz raises pertinent questions about the wisdom of national hog herd expansion, hinting at the potential for contraction. The recent USDA Hogs and Pigs report unveils a marginal increase in inventory, but a worrisome 3.3% decline in the breeding herd sparks concern. Schulz, however, identifies a potential silver lining, suggesting that this reduction may provide market support, especially with record pig numbers per litter sustaining overall production.
Jason Franken, representing Western Illinois University, sheds light on an unexpected decline in the breeding herd and a simultaneous rise in pigs per litter, effectively offsetting reductions in farrowing intentions. Market conditions are currently discouraging aggressive expansion, with producers exercising caution following substantial losses in 2023 and recent investments in facilities.