The pork industry in the United States has seen an increase in pig farming since the 2000s for commercial and domestic purposes. The pork farming sector has seen a boost in production since the market has been acceptable in recent years. For instance, commercial pork production in the U.S. hit 27.7 billion pounds of retail pork. This fact has seen the pork industry gain value in terms of market worth since the gross national production was valued at 57.20 billion. These past and recent trends make the forecast of the following year’s market possible to make predictions and arrangements for the pug farming process. Forecasting 2023’s pork farming industry involves an analysis of local and global trends, pork prices, imports and exports, and production.
Current Trends
Pork has been proven to be the world’s most consumed meat; specifically, in the United States, pork is a leading market in the commercial meat sector. Nationally, the gross output annually amounted to 23.4 billion, with 26% of pork meat and other pork products exported to other countries. The pork market is well demanding since the exports are increasingly profitable with time. Over the past five years, commodities prices have fluctuated due to the high demand for pork and pork products. There has been productivity, structural growth, expanded exports, and increased output in the pork industry, and the trend is good for business to be undertaken (Davis et al., 2022).
Pork Price and Production Forecast
For 2023, we are forecasted to average $91.19/cwt in the first business quarter and then experience a seasonal rise to $99.41/cwt and $101.28/cwt in the other consecutive quarters. In 2022, pork prices increased by 27.3%. Market specialists say that the market growth for 2023 is expected to gain yet another rise in growth. Additionally, with this increased anticipation of market prices, there is expected to be a 2% drop in the market for pig and pug products in the same year. This increase in the market is for both the price and production of the product because they go hand in hand. Globally, pork is in high demand, and with the U.S is a leading producer and exporter, it is expected that pig farming will increase in production to sustain the market demand (Welch, 2022).
Pork Export and Import Forecast
The U.S. pork market is characterized by many exports more than imports. Being a local business, exports of pork meat and pork products are expected to increase by 3% due to the high market demand. This demand is considered for local and international exports since most Americans are pork consumers. Areas that are expected to give more demand than normal include the U.K., where imports in the country are expected to rise by 7%. However, after this steady rise, the pork industry is expected to have a drop n production which will also lead to an increase in pork prices. When the product becomes scarce, its price shoots due to the imbalance in supply and demand. This decline is caused by the high production rate that will leave a minimum number of pig farmers that can sustain the market. This will also need the pork industry to have some time before scaling back to its previous successes unless farmers take note of this and make plans adequately (Davis et al., 2022). Just like the national scale, global pork production trends in the U.S. will increase due to the high demand, making the global and national trends of the U.S. have similar trajectories (Queck-Matzie, 2019).
Conclusion
Conclusively, pork farming can be a good investment in the U.S. for farmers seeking to venture into pork farming. The previous market trends have proven to forecast a promising market for 2023, making it good news for farmers intending to make good money. Aside from previous trends, the current trends are also promising since pork and pork products have a ready market as demands for these products continue to increase. This will further lead to an increase in production an increase in prices, and an increase in exports and imports.
References
Davis, C. G., Dimitri, C., Nehring, R., Collins, L. A., Harley, M., Ha, K. A., & Gillepsie, J. (2022, August 16). U.S. hog production: Rising output and changing trends in productivity growth. Retrieved December 8, 2022, from https://www.ers.usda.gov/publications/pub-details/?pubid=104436
Queck-Matzie, T. (2019, October 2). An overview of pork production in the U.S. Retrieved December 8, 2022, from https://www.agriculture.com/livestock/hogs/an-overview-of-pork-production-in-the-us
Welch, J. (2022, November 2). Commodity insight: A shortage of beef and pork in 2023. Retrieved December 8, 2022, from https://www.agrinews-pubs.com/opinion/columnists/2022/11/02/commodity-insight-a-shortage-of-beef-and-pork-in-2023/
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