NPPC Q1 Economic Update

Here is a brief summary of each section in the NPPC Q1 report:

• Consumer Pork Demand: Strength of domestic demand in 2023 will depend on many factors, including how rising interest rates and high prices for household necessities impact consumers, the price and availability of other meat proteins, and consumer preferences for pork products.
• Production/Supply: After declining 2.5% in 2022, USDA projects growth in pork production for 2023.
• Labor: Labor market conditions and changing demographics are exacerbating the rural labor shortage. From June 2021 to 2022, average weekly wages on hog farms increased nearly 10% while employment dropped 2.6%.
• Production Costs: The cost of raising pigs was a record high in 2022, increasing 21% from the previous year. Current hog prices are below the estimated breakeven level, which is likely to remain elevated in 2023. However, the U.S. continues to be one of the most cost-efficient producers in the world.
• Economic Contribution: The pork industry supports significant jobs and value-added within agriculture and other industries, including the trucking, manufacturing, construction, finance, and service industries.

NPPC Q1 Full Report