Hog Inventory Breaks a Record

Lee Schulz

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: From 2011 through 2014, the lean hog price needed to cover production costs averaged $83 per cwt, as calculated by Iowa State University’s Estimated Livestock Returns. Lower feed costs trimmed the 2015 breakeven price for farrow-to-finish operations to about $66 per cwt. It goes without saying that the market wants to buy more hogs at $66 per cwt than it did at $83. Lower costs let producers increase the herd to get quantity supplied closer to demand.

Date: 2015-11-01
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