An expansion in the U.S. pork industry has begun, driven by significantly cheaper feed supplies. As the expansion continues, it points to increasing pork supplies in the second half of 2014. According to the U.S. Department of Agriculture (USDA), there will be a 1% – 2% increase in pork production for the first half of 2014. Numbers of market hogs will be down fractionally, however weights are expected to be 2% higher. Pig litters are expected to be 1.5% bigger with higher weights leading to an increase in pork production for the second half of 2014. Pork demand should remain strong through 2014 based on limited domestic competitive meats. Chicken production will increase by 3% and turkey production by 2%, but beef production will fall by 6% and pork’s comparatively lower prices could pull consumers away from beef to pork. Live hog prices are expected to reach a high of $71 in the third quarter of 2014 and profits for 2014 are expected to be $27 per head – the most profitable year since 2005. As supplies increase profit margins will narrow, however returns will remain profitable through the fall of 2015.
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