Market Trends of north america processed pork meat Industry
Initiatives taken by the government to prevent the spread of diseases will propel the production
- The United States was the top pork producer in North America, with a 66.69% share in the region's pork production in 2022. Iowa accounted for about 23.8 million pigs in the United States in 2021. The United States produced roughly 74.77 million pigs and hogs in 2021, of which a significantly smaller number of pigs (6.18 million) in the country were used for breeding, and 68 million were market hogs. Some popular swine breeds include Berkshires, Chester Whites, Durocs, Hampshire, Landraces, Poland Chinas, and Spotted Pigs. The USDA's Animal and Plant Health Inspection Service (APHIS) is taking additional measures to stop the spread of African swine fever in the United States. The "Protect Our Pigs" campaign will provide information and tools to commercial pig producers in order to protect the swine population in the United States.
- Mexico is also a major pork producer, producing 29.4% of the region's pork. The production increased by 2.3% in 2022 compared to the previous year, owing to factors such as the highly competitive consumer prices of pork throughout 2022 compared to those of beef and chicken, thus influencing household purchasing decisions during high inflation. In addition, the growth of processed pork, which requires increasingly more pork, and the production of specialized domestic cuts that compete with imported cuts contributed to the growth in production.
- The pork industry is the 4th largest farming industry in Canada. In 2021, the country had around 7,330 farms producing 14.17 million hogs, with Quebec (31%), Ontario (26%), and Manitoba (24%) accounting for 81% of Canada’s inventory. Around 21,656,185 hogs were slaughtered in federally and provincially inspected establishments in Canada in 2021.
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Lower rate of production leading to supply shortage is leading to price spikes
- The price of pork grew 8.80% in 2022 from 2017. The second quarter of 2023 saw a price hike ranging from USD 1 per hundredweight (cwt) to USD 57 per cwt of pork, which was almost 25% lower than the price at the same time in 2022 in the US. Prices in June and July are typically 8-10% higher than average. This seasonal peak occurs throughout the US summer when consumers are more likely to purchase foods like bratwursts and pork chops for grilling. As per Farm Credit Canada, margins in the eastern region will drop for the second year due to softening prices and relatively higher feed costs compared to the western region. The margins of western farrow-to-finish will stay positive.
- A shortage of pigs and inflation are driving record-high pork prices. However, inflation is not catching up with the price of pork. Between April 2021 and 2022, inflation increased by 8.5%, while pork prices increased by 16.1%. The increased demand for bacon is a major factor responsible for increased pork prices in retail. Sliced bacon's average retail cost increased by 23.1% in March 2022, whereas the prices for boneless pork chops and boneless ham increased by just 4.5% and 7.5%, respectively. These last two cuts recorded growth at a slower rate than inflation.
- Pork prices in the region may continue to rise due to the lower-than-expected growth in pork production. The number of pigs slaughtered in 2021 decreased by 1.96% from 2020. Persistently high retail prices limit the consumption of all proteins. Consumers continue to conserve income by shifting everyday purchases to lower-value protein options, switching channels, and moving to smaller pack sizes.
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