Hog Prices Fall From Record Highs (Will Bacon Prices Drop Too?)

Photo courtesy of greybrucepork.com

Hog prices have dropped sharply since hitting record highs in the middle of July.

It turns out PED (porcine epidemic diarrhea) virus took a smaller toll on U.S. hog supplies than was expected, explains Tyler Fulton, director of risk management for Manitoba-based Hams Marketing Services, in the interview below.

Fulton says traders were expecting an 8-10 percent drop in supplies due to PED, but heavier hog weights limited the impact.

Russia’s ban on North American pork has also contributed to the price slide, but only in a small way — maybe accounting for 2-3 per cent of the drop in pork prices, he says.

So what does this mean for the consumer price of pork? Fulton says there could be some sales on bacon in the grocery store in the near future, but the long-term impact of PED will continue to support higher pork prices.

If you can’t see the embedded audio player, click here.

Related: PED Crisis Underlines Need for Rural Vets

 

Kelvin Heppner

Kelvin Heppner is a field editor and radio host for RealAgriculture and RealAg Radio. He's been reporting on agriculture on the prairies and across Canada since 2008(ish). He farms with his family near Altona, Manitoba, and is on Twitter at @realag_kelvin. @realag_kelvin

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