Ag News Links
More Ag News
 
Ag News
Feed Costs Force Cutbacks
Published Wednesday, May 07, 2008 at 04:57 AM
Purdue Agricultural economist Chris Hurt says our nation’s pork producers will lose as much as 3.8 billion dollars this year, due mainly to higher feed costs. He says the pork industry is – a financial disaster in progress. As pork producers cut back production, the flood of more pork to the marketplace will add more pressure to the prices they receive. But, soon, prices should begin to rise to levels that will provide producers with more of a chance to earn a profit.

Corporate farmers are also cutting back. Fieldale Farms Corporation, a privately held chicken producer, is cutting its production by 5 percent starting in the middle of the month. Tom Hinsley, senior vice president, said he expects higher chicken prices by midsummer. Pilgrim's Pride said it plans to reduce weekly chicken processing by 5 percent in the second half of the year, and keep production down until margins improve. Smithfield said in February that it would slaughter 4 percent to 5 percent of its breeding sows.

The U.S. Department of Agriculture predicts overall food prices could increase another 4 percent to 5 percent in 2008.

© 2008 The Nebraska Rural Radio Association. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.
Page Sponsors
Central Nebraska Bobcat
Sales, Service and Rentals!
Nebraska Pork Producers Association
Encouraging the profitability and sustainability of Nebraska's producers of pork.
KTIC Dodge Mfg Co Husker Ag Sales, Inc. Pathway Bank Phelps Memorial Health Center 08 Teammate Tailgate