Despite Supply Chain Disruptions, Pork Production Climbing Back

DENVER, CO – Before April, few could imagine a supply chain shock where U.S. pork production could fall by nearly half yet climb back to above prior-year levels two months later. In fact, pork production in the last week of the quarter was up more than 10 percent above the same week a year ago as the industry worked through the backlog of hogs.

According to CoBank, in a recent Quarterly Update, it is estimated that although nearly 3 million pigs were expected to be marketed in the second quarter, that projection never materialized.

As packing plants trimmed capacity amid coronavirus shutdowns and slowdowns, some animals were euthanized. Still, some pork producers found ways to hold back some of their livestock.

The second quarter’s supply chain disruptions will affect pork supplies later in 2020 CoBank analysts predict, and this could create long-term implications for producers beyond that. Second-quarter pork exports remained strong, up about 20 percent based on increased demand from China.

The Chinese are in the midst of rebuilding their hog herd after African Swine Fever wiped out more than half of its pork supply over the past 48 months.
(SOURCE: CoBank Knowledge Exchange)