The increase packing capacity in the USA is cutting out profits
Prices on lean hogs and pork cut-outs are slightly declining but the trend is going to last longe, as mentioned in a Genesus Inc. report. According to the data offered by the market, 53 to 54 percent of lean hogs sold last week registered a decrease of prices from 74.25c / lb to 71.63c / lb. At the same time, pork cut-outs have slid from 82-83c/lb range to 77-79c/lb.
"The 5c/lb spread is in the range we should expect in the coming months, considering the current level of hog production and packing plant capacity. Meaning - for producers to get higher hog prices, cut-outs must go higher. We expect they will, over the coming weeks, as hog supply decreases seasonally", explained Jim Long, President-CEO Genesus Inc.
Nevertheless, not even a rebound in prices will bring back the big profits in this sector. "The days of Packer Gross Margins records in the $30 to $50 range per head is over. The increased packing capacity has ended the era of Christmas every day", comments Jim Long.
(Photo source: Pixabay)
The data, analysed by Meat & Livestock Australia (MLA), shows that the last quarter was the l...
The partnership aims to facilitate access to Pronaf Mais Alimentos credit for 1,500 family farmer...
The European Commission proposed the delay in early October in response to concerns raised by mem...
