Released: January 07, 2003

Pork Producer Returns Seen Improving

MANHATTAN, Kan. – Pork producers, like cattle feeders, can welcome the new year with a little more optimism about their financial returns, according to a Kansas State University agricultural economist.

After seeing an average loss of about $14 per head on hogs leaving Kansas segregated-early-weaning [SEW] nursery-to-finishing operations in October, and $11 losses in November, returns looked somewhat better, but were likely still negative in December, said Rodney Jones, who is a livestock production specialist with K-State Research and Extension.

"Returns should continue to improve into early 2003, as lean hog prices recover from their fall lows," Jones said. "Break-evens for average nursery-to-finish producers will average in the upper $30s per hundredweight [cwt] on a live-weight basis for the next several months, before increasing to the low $40s as higher-priced weaned pigs work their way through the system by March and April of 2003."

Average farrow-to-finish producers currently are seeing break-even prices in the low $40s [per cwt] on a live-weight basis and futures-based price forecasts suggest that producers will see positive net returns early in 2003, as well, he said.

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K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.

Story by:
Mary Lou Peter, Communications Specialist
mlpeter@oznet.ksu.edu
K-State Research& Extension News