There will be plenty of meat and poultry for consumers
Hurt says there will be plenty of meat and poultry for consumers and retail prices will likely fall, encouraging them to buy more.
The global marketplace is also casting shadows on the U.S. pork industry, with weak income growth in some countries that buy U.S. pork and a strong U.S. dollar that encourages more pork imports and stimulates pork production in competitive countries.
For 2016, Hurt predicted that margins are expected to be negative for the year with an average loss of about $4 per head. He suggests that there will be large differences by quarter with losses near $16 per head in the first and the fourth quarters and profits of about $8 per head in the second and third quarters.
Hurt said that any further expansion in the pork industry at this time will likely lead to even larger losses. ■