US is struggling with huge pig herd due to corona

According to the U.S. Department of Agriculture, there were approximately 2020 million hogs in the third quarter of 79,1. Compared to the June 1 count, the number has decreased by 0,7%. When the number is compared to last year, the level is still 1% higher.

The pig herd has increased significantly since March, when the coronavirus struck many American slaughterhouses. This resulted in the closure of slaughterhouses and declining slaughter capacity. The pig supply dwindled and many pig farmers had nowhere to put their pigs. Reportedly, millions of pigs have been forced to be culled in America, but this has not completely solved the oversupply.

Breeding
The number of breeding sows reached 6,3 million in the third quarter. Compared to the same period, this is a decrease of 2%, but compared to the June count this year, the number has increased slightly again. American pig farmers are trying to reduce the pig herd to original levels. For the fourth quarter, they plan to farrow 3,12 million sows. This is a decrease of 5% compared to the number of throws in the third quarter of 2019.

Export
The positive side of the higher inventory is that more pork can be exported. China is currently importing record stocks of pork. Now that Germany can no longer export pork internationally, America's export opportunities are increasing further. According to market reports, US pork stocks should be lower at the end of 2020 than at the end of 2019 as a result of these higher exports.

The US Meat Export Federation (USMEF) is positive about the higher domestic supply and the prospects for the second half of 2020.