The U.S. pork industry started 2025 on a strong note, with increased production and higher hog prices driven by robust consumer demand. According to the latest USDA Livestock, Dairy, and Poultry Outlook, estimated federally inspected (FI) pork production in January 2025 reached approximately 2.5 billion pounds, reflecting a 1% increase compared to January 2024.
This growth was primarily fueled by a higher number of slaughter-ready animals—about 11.4 million head, nearly 1% more than the previous year—combined with slightly heavier average dressed weights. Despite this increase in supply, consumer demand for pork remained high, allowing processors to command higher sale prices for pork cuts at the wholesale level.
January 2025 saw a significant increase in hog prices, with processors paying $80.19 per hundredweight (cwt)—a 19% jump from January 2024. At the same time, the wholesale pork carcass cutout averaged $91.07 per cwt, 4.7% higher than the same period last year.
While the gross processor spread (the margin between the price paid for hogs and the wholesale value of pork) remains below 2024 levels and the three-year average, its positive trajectory in 2025 indicates strong consumer demand. Unlike past years, where spreads tended to decline early in the year, 2025 is showing an upward trend, with wholesale carcass values rising faster than hog prices.