The economist to the pork industry Steve Meyer, with Paragon Economics, gave attendees at the 25 anniversary of the World Pork Expo in Des Moines, Iowa an economic update. During a question and answer session Meyer noted that the industry finally has prices back to profitable for the short run, the first time in nearly two years. However, he doesn’t believe this will last unless there is a very, very good corn crop, which he says looks doubtful at this point due to all the rain.

Meyer said with a good corn crop, somewhere in the 140 bushels per acre range, he thinks the industry could see prices in the low $80s next spring. If this is the case, then the industry is set up for a profitable 2014.

During the session, Meyer addressed the possible effects of exchange rates and feedstock costs to operations as well as the impact of last summer’s drought. But he noted that producers are still doing fairly well due to better risk management techniques over the past three-four years.

Listen to Steve Meyer’s remarks here: Pork Industry Economic Update

Visit the 2013 World Pork Expo photo album.