U.S. pork market: Signs point to accelerating growth
U.S. Pork Production tentatively transitioned to an accelerating growth trend in February. Average production during the 12 months through February was up 1.9 percent compared with the year-ago level (most recent data). The production quarterly growth rate has passed the annual growth rate, indicating accelerating growth in production will persist during at least the near term. Expectations for rise in overall U.S. food production and in U.S. retail sales at food and beverage stores will support expanding production through at least the remainder of this year.
Leading indicators suggest that pork production will expand further this year. U.S. personal consumption expenditures for pork is up 4.6 percent compared with the year-ago level. Internal trends suggest accelerating growth in personal consumption expenditures will persist further during at least the next quarter, which bodes well for further U.S. pork production growth. U.S. pork products producer prices and U.S. prepared animal feeds producer prices are rising. Budget for increasing production costs as input prices are likely to rise further this year. NP