Strong Demand Keeping Pork Supplies Current

Strong demand is helping the pork industry push through high production. An outlook published by the Department of Agriculture’s Economic Research Service shows that though fourth-quarter pork production is on track to reach a record high of more than seven billion pounds, up 3.5 percent from a year ago, the ending stocks-to-production ratio is projected to drop to its lowest level since 1990. Meat industry publication Meatingplace says that means domestic demand is outpacing production because U.S. consumers are likely responding to lower prices by buying more pork at a time when disposable personal incomes are rising. Fourth-quarter hog price forecasts reflect heavy supplies, almost nine percent lower than prices during the same period last year. For the full year, commercial pork production is projected at a record 26 billion pounds.