Economists Glenn Grimes, professor emeritus at the University of Missouri, and Steve Meyer, president of Paragon Economics, forecast mixed results for the pork industry for the reminder of this year and next.
At a World Pork Expo press conference, they predicted continued growth in productivity and exports, but weak domestic demand. They contend profits will be modest for 2006 and that the industry probably will be in the red next year, particularly if feed prices rise because of drought or competition from ethanol for corn.
Grimes forecasts producers will average $45-$48 per live hundredweight for the second quarter in 2006, $42-$45 cwt in the third quarter and $37-$40 cwt in the fourth quarter. This averages out to $41-$44 cwt for the year.
NPPC, Glenn Grimes presentation