Hog farmers in the U.S. have been slaughtering the animal more rapidly than anytime in the past three years as hog futures are forecast to climb, according to Bloomberg.
Feed costs have surged the most in 14 years as a result of the past summer's drought, the worst one in more than 50 years. Next year is projected to have herds that are smaller and the U.S. Department of Agriculture projects the supply of pork next year will fall to its lowest per capita since 1975.
"We're going to see more consolidation in the industry," vice president Mark Greenwood with AgStar Financial Services Inc. in Mankato, Minnesota, told the news source. "It's only going to get worse on the higher feed prices."
At 2:51 p.m. on Tuesday, hog futures fell 0.7 percent, a 0.00525 loss to 0.74825 per pound.
The issue is global as well, as European farmers are dealing with higher prices for feed, which is prompting them to increasingly cull pig herds, The Financial Times reports. The National Pig Association of Britain is warning of the "unavoidable" shortage.