Summer's Drought Impacts Pork Supply
In this April 30, 2002, file photo a commercial market hog stands in a pen in a hog lot near Panora, Iowa. (AP Photo/Charlie Neibergall, File)
By
KCRG Intern
Story Created:
Sep 25, 2012 at 9:40 PM CDT
Story Updated:
Sep 25, 2012 at 11:03 PM CDT
DES MOINES, Iowa - A British trade industry group is raising concern worldwide Tuesday by saying a pork and bacon shortage is "unavoidable," but Iowa farmers and experts said it wouldn't be as bad here.
The National Pig Association said the worldwide shortage will happen next year. The group blames the drought's impact on corn and soybean crops and how that increases feed costs for animals.
Kerns said the situation here in the U.S. is not as bad as in some European countries that claim a shortage is unavoidable. Producers there are dealing with changes in regulations and production that Kerns said is influencing supply.
In the U.S., the cost and supply is related to the drought, and the impact of the higher prices is not just being felt by the pork industry.
"All of agriculture production, no matter what that production is, is going to see an impact but the consumer most likely will be paying a little bit higher price," said Kerns.
Producers, like Struthers, hope consumers won't stop buying pork because of the higher prices. He's optimistic that next year's crop will be better to help lower his cost and the cost for consumers, but that will depend a lot on the weather.
"If we have another dry year things could get really ugly," said Struthers.
Kerns said by next summer you could be paying 10-percent more for pork, which is why he recommends stocking the freezer now. Many producers are selling hogs at lighter weights to cut their losses, so there's a healthy supply of pork.
Consumers won't see the higher prices until next year.
The group said farmers worldwide are cutting their herds "at a significant rate" that could double pork prices in Europe in the second half of next year.
The U.S. Department of Agriculture has documented changing trends here in the U.S. Farmers are cutting their herds as feed prices increase.
The National Pig Association is calling on consumers to choose local products to help boost prices to help farmers.
The drought is affecting Iowa pork producers who are facing a losing proposition with corn. They need to feed their hogs at more than $7 a bushel.
"If I were purchasing all my grain to feed my hogs, I'd probably be closing out right now," said David Struthers.
Instead of calling it quits, Story County farmer David Struthers said he's trimming the size of his herd to reduce his losses.
While a shortage may be in the works for Europe, producers here say Iowa's situation won't be that bad.
"You will be able to eat BLTs next year. You just might be paying a little bit more for the bacon than what you did this year, but we will not run out," said Joe Kerns.
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