(Washington, D.C.) — While cattle prices have soared to record highs, hog producers have been facing significant challenges in recent months. Duane Stateler of McComb, Ohio, who serves as President of the National Pork Producers Council, says it’s been a difficult stretch. “The market’s been rough these past couple of years,” Stateler noted. “We thought things were bad back in 2000, but this recent period has actually been tougher than the 1998 to 2000 timeframe.”
Stateler said the market began on a strong note, and it looked like prices would remain favorable heading into summer. However, ongoing trade and tariff discussions led to a sharp decline in Lean Hog Futures at the end of February. He added that strong demand has helped keep the cash hog market competitive.
Stateler explained that while most hogs are still independently owned, the structure of the industry has evolved, becoming more specialized. Some producers focus on raising sows and piglets, while others—often contract farmers—are responsible for finishing the pigs and preparing them for market.
Stateler acknowledged that losing more than a generation’s worth of equity over the past few years could led some producers into financial distress.
Stateler says the issue now is the uncertainty. The market price is good through the summer, however, producers are anxious to see what kind of tariff deals are made, and whether there the pork industry can get through an open trade door without tariff’ barriers, then the pork producer will come out okay.
