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[reubenray]

Without getting into a political debate I am wondering if the price of pork will come down with the new tarriffs?  I read that they would due to excess supplies.


Note:  If this is not allowed I apologize and please delete this post.

[Bar-B-Lew]

Unless they get a government subsidy to keep price up, the law of supply and demand says when supply goes up price comes down.

[triplebq]

I don't believe price will go down. If it does you can expect a lot of pork producers to go out of business or at least reduce staff. If the demand dries up I don't see how pork farmers can afford to keep raising hogs at the same rate. For example If you are able to sell 500 hogs today @ $100 to meet the demand you will make $50,000. Now if your market dries up and you are only able to sell 250 hogs, in order for you to bring in $50,000 you have to sell each hog at $200.

Maybe in the short term you might see an abundance of hogs due to the current supply but I wouldn't expect that to last long.

[sleebus.jones]

*shrug*

Wife just bought boneless pork shoulder yesterday for $0.79/lb.

[Bar-B-Lew]

I don't believe price will go down. If it does you can expect a lot of pork producers to go out of business or at least reduce staff. If the demand dries up I don't see how pork farmers can afford to keep raising hogs at the same rate. For example If you are able to sell 500 hogs today @ $100 to meet the demand you will make $50,000. Now if your market dries up and you are only able to sell 250 hogs, in order for you to bring in $50,000 you have to sell each hog at $200.

Maybe in the short term you might see an abundance of hogs due to the current supply but I wouldn't expect that to last long.

If price goes down, you don't keep feeding the same hog.  You sell it for market price to get cash to keep running your business.  At some point, you start raising less and cut back on costs.  Eventually, prices go back up because there is not enough supply to meet demand.  Farmers start raising more and investing in their business.  Wash...Rinse...Repeat.  Happens in almost every business.  Those that run a tight ship, manage investments in their business timely and wisely, and can scale up and down the fastest stay in business the longest.

[triplebq]

*shrug*

Wife just bought boneless pork shoulder yesterday for $0.79/lb.

Do you believe this will be the norm?

[Clonesmoker]

Just got pork loins for $1.48 lb. That is a great price.

[sleebus.jones]

*shrug*

Wife just bought boneless pork shoulder yesterday for $0.79/lb.

Do you believe this will be the norm?

I've never seen them that low before.  Obviously a sale price, but still.  Even more amazing is that they are BONELESS, so pretty much zero waste.  I use them for making sausage, and it sure speeds up the process without having to bone out the shoulder.

I do see pork loin for $0.99/lb.  That's pretty common and not unusual.

[triplebq]

*shrug*

Wife just bought boneless pork shoulder yesterday for $0.79/lb.

Do you believe this will be the norm?

I've never seen them that low before.  Obviously a sale price, but still.  Even more amazing is that they are BONELESS, so pretty much zero waste.  I use them for making sausage, and it sure speeds up the process without having to bone out the shoulder.

I do see pork loin for $0.99/lb.  That's pretty common and not unusual.

I could be wrong but I think in the short term you will see low prices due to the surplus that is in the market. I don't see hog producers keep producing the same amount of product when the market can't support it.

Any business that has its market shrink has to make adjustments. Selling less product at a cheaper price is not a recipe for success.