PRIMGHAR, Iowa — The swine industry has certainly been through a lot this year, but finally some good news is more than welcome.
Changes in exports to China because of African swine fever positive wild boars in Germany and continued strong demand domestically have pushed the price of pigs higher. Normally the hog market declines during the Fall as more pigs typically are available during this season. However, this year might be an exception.
With tight shackle space this Spring and Summer due to COVID-19-related plant slowdown, producers have been losing money in pork production, but this unexpected jump in prices is encouraging.
Right now, feed costs range in the low $70s per head and the rest of the cost is about $50 per head putting the breakeven price in the low $60s per hundredweight for most producers. Finally, market prices have risen above that breakeven.
The other good news for pork producers is the new pork marketing contract based on cutout value starting Nov. 9th.The cutout value and the lean hog index have spread apart in recent months making the cutout value worth looking at as a new risk management tool.
— Dave Stender, Swine Program Specialist
Iowa State University Extension and Outreach
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