U.S. hog producers increase slaughter weights to counter PEDv effects
U.S. hog producers are responding to inventory losses associated with the spread of the Porcine Epidemic Diarrhea virus (PEDv) by increasing the average slaughter weights of their remaining inventory, thus mitigating the likely impacts of PEDv on 2014 pork production. The PEDv outbreak reduced the average litter rates for the December 2013-February 2014 and March-May 2014 pig crops by about 5.5 percent and 5.1 percent, respectively, contributing to a 5 percent decline in the June 2014 U.S. hog inventory compared with a year earlier. However, lower U.S. corn prices, combined with excess barn space created by the PEDv losses have allowed producers to respond by holding surviving animals longer on cheaper corn-based rations, thus boosting average dressed weights. During January-May 2014, dressed weights averaged 3.7 percent higher than the same period in 2013. The heavier animals continue to partially offset production losses from PEDv-related deaths. For 2014, USDA forecasts a 5.2 percent drop in hog slaughter, but only a 1.9 percent reduction in pork production. Dressed weights are expected to average more than 214 pounds this year, more than 7 pounds greater than in 2013. Find this chart and additional analysis in Livestock, Dairy, and Poultry Outlook: July 2014.
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