Feed costs to set pace of expansion

摘要

VOLATILITY in feed and hog prices has driven huge swings in pork profits. No one in the pork industry wants to be out of position with limited inventory during the next profit surge. That's one reason pork producers are slowly rebuilding the breedingherd in the face of a very uncertain financial outlook. Another factor is that hog prices cover variable costs, leaving dollars to apply to fixed costs, so producers have no economic reason to cut back.