Illinois pork producer profits in 2000 reached levels not seen since 1990.
Dale Lattz, University of Illinois Extension farm management specialist outlined the results from the Illinois Farm Business Management Association.
"A reduction in pork output, strong product demand and low feed costs have all contributed to better times," Lattz says. "Higher market hog prices in 2000 resulted in Illinois producer profits increasing by $3.42 per hundredweight compared to 1999."
Total returns averaged $42.65/cwt. in 2000. Total returns for farrow-to-finish hog enterprises exceeded production costs by $6.13/cwt. The 1999 returns were $2.71/cwt.
Total cost of production was $36.52/cwt., compared to $34.62 in 1999.
"Feed costs made up 55 percent of the total costs, or $19.96 in 2000, as compared to $20.17 in 1999. Feed costs have decreased every year since 1996 and were at their lowest level since 1972," Lattz says.
Profitability will continue for Illinois producers, Lattz says, citing hog prices expected to average $46.50/cwt. and current crop prospects that indicate feed costs should not increase significantly.
For more information go to www.farmdoc.uiuc.edu and click on "Illinois Farm Economics: Facts and Opinions."