Hog prices raised on strong demand

The U.S. pork industry kicked off the year with a boost to production. More slaughter-ready hogs resulted in 2.5 billion pounds of pork in January, a 1% increase from the year prior. However, processors paid much more for hogs this year than last, notes USDA ERS Agricultural Economist Mildred Haley.

“Processors paid considerably higher prices for hogs in January—$80.19 per cwt, which was more than 19% higher than in January 2024—but that at the same time they received higher sale prices for pork cuts from wholesalers. The January 2025 wholesale pork carcass cutout averaged $91.07, almost 4.7% higher than a year ago,” Haley reports. “Although the gross processors’ spread remains below both the levels of 2024 and the three-year average, it is notable that to date the slope of the 2025 spread is strongly positive, while those of prior years’ trends were negative. This is due to 2025 wholesale carcass values increasing faster than hog prices.”

According to the USDA Economic Research Service Livestock, Dairy, and Poultry Outlook for February 2025, the key variable last month and this month is robust consumer demand pulling more pork through food supply chains and distribution systems at higher prices than a year ago. With demand expected to continue, along with tight slaughter hog supplies, producers have bid up prices for early weans and feeder pigs, Haley points out.