"Hog prices are expected to have averaged about $47.85 per
hundredweight in 2008," said Dale Lattz, a U of I Extension farm
financial management specialist. "The sharp increase in corn and
soybean prices early in the year is likely to result in
significantly higher feed costs for 2008. Feed costs are
expected to come in about $38.75 per hundredweight and non-feed
costs at $19.70 in 2008.
"Total costs of production would be
$58.45 per hundredweight, or significantly above the average
price received. If these projections materialize, 2008 will
result in substantial red ink for hog producers."
Lattz's complete report, "More Red Ink Expected for Hog
Producers in 2008 after Experiencing Losses in 2007," can be
read online at U of I Extension's farmdoc site. (Report)
Lattz noted that higher total costs in 2007, due mainly to
higher feed costs, resulted in hog producer profits decreasing
by $9.72 per hundredweight over 2006.
[to top of second column]
"The 2007 profit margins were the lowest since 1998," he noted.
On the good news front, Lattz said that hog prices might increase
in 2009 due to a decrease in pork production.
"Hog producers might experience near-break-even levels in 2009,
depending on corn and soybean price levels," he said.
[Text from file received from