Ames, Iowa – Despite international trade tariffs and a series of other challenges, Iowa livestock producers are seeing hog prices rise in recent weeks, which comes as a welcome surprise to many.
Lee Schultz, an ag economist with the Iowa State University Extension, explains the rollercoastering of pork prices on the commodities market.
That’s African Swine Fever which has reportedly spread to every region of China and several surrounding countries, dropping the hog population in China by nearly 40-million head compared to last year.
Shultz says US pork producers are also seeing the potential for significant growth in global protein demand.
We’re well into spring and the warmer weather will soon bring us to summer grilling season, Schultz says we are entering a key period of demand for pork, which should keep prices higher.
Schultz says profitability levels are higher for the pork producer than what has been seen for the last few years and he remains optimistic for the remaining months of 2019 and into 2020.