The overall profitability of pork producers in South Dakota is challenged by supply chain issues. “They were expecting to sell a large volume of hogs at a relatively good price and now they’re dealing with a much lower price received in a lot of cases,” said Matt Dierson, risk and business management specialist, South Dakota State University Extension. Dierson said hog prices are 30 to 50 percent lower than other times, depending on a producer’s benchmark. “If you’ve been in the open market or trying to get hogs sold without any kind of contract, you’re looking at a large hit to overall profitability. The price they’re receiving is likely much lower than any reasonable value to cover input costs like corn and soybean meal.”
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