While lower grain prices aren’t a welcomed sight for grain farmers, livestock producers welcome the sight. This is especially after coming out of a year like 2023, which Mike Borgic with the Illinois Pork Producers says was statistically the worst year for pork production in terms of profit.
“It was even worse than ‘98, ‘99 when we saw a lot of producers get out of the industry because of how bad it was.”
Borgic adds that since COVID, the pork industry hasn’t seen much expansion.
“We have seen a reduction in sow numbers across the country, but we’re also seeing higher pigs per sow per litter throughout the year. So we’re getting rid of some of our sows, but still increasing our production. But for us on the marketing side,” says Borgic, “the price of corn and beans, it’s helping us out, because we’re now starting to get into the black a little bit for the last couple of months because of those prices being lower.”
With lower grain prices, producers can feed pigs a little longer to higher weights, reaching 285 to 290 pounds on live weight. Another ‘lifesaver’ for the pork industry is exports, says Borgic, with 25 to 30 percent of pork raised being exported.
Listen to more from Borgic from the 2024 FS Fall Ag Roundtable:
