CoBank reports rising demand and strong profitability for US pork
According to a new report from Farm Credit System member CoBank, global demand and the potential for profit are creating strong incentives for US pork producers to expand capacity. While this means favorable conditions for producers, it also means intensified competition among packers and possible short-term compression in packer margins. “US pork packing capacity will increase eight to 10 percent by mid-2019, when five processing facility construction projects are complete and fully operational,” Trevor Amen, an economist with CoBank who specializes in animal protein said in a statement. [node:read-more:link]