Hog Producers Should Break Even in 2010

U.S. hog producers should break even in 2010 as both the average price received and the total cost of production are expected be around $50 per hundredweight, according to Purdue University Extension Economist Chris Hurt. In a report, Hurt forecast first-quarter live hog prices “in the higher $40s per hundredweight” followed by “the low $50s” in the second quarter, “nearly $50” in the third quarter and “in the mid-to-higher $40s” in the fourth quarter. He put total costs of production, including feed, labor and full depreciation of buildings and equipment at $50 to $51 per hundredweight. “The bottom line is that hog producers are not expected to go backwards financially in 2010,” said Hurt.

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