Supply chain concerns likely to continue through 2020
Recovery to the pork processing sector has made significant improvements in recent weeks. But will it last?
Ag economist David Miller with Decision Innovation Solutions says full recovery to pork processing industry could be just around the corner. “We’re actually, probably going to make a little headway in July on cutting into slaughter backlog,” he says. “
But, he says the relief will be short-lived, especially with sow farrowings for the second quarter of the year 1 percent higher than a year ago. “Once we get out to Labor Day we’re going to start backing up hogs again,” he says. “Probably to the tune of 100,000 to 200,000 head per week.”
And, that leaves producers battling some serious price pressure for the remainder of the year. “I think we’re going to be 20 to 25 percent under year-ago levels from a pricing standpoint as long as we’re backing up hogs,” he says.