Hog Industry More Concentrated

WASHINGTON - Sep 16/02 - SNS -- A review of the structure of the U.S. hog industry suggests it is becoming increasingly concentrated in a smaller number of companies, with larger operations now accounting for three-quarters of the industry.

Reviewing the data, the USDA said "much of the increase in the efficiency of the U.S. hog breeding herd over the last 5 to 10 years can be attributed to the shift in size of operations to larger, more efficient operations and the decline in smaller, less efficient operations."

The USDA said for the future, it now appears that the increase in the efficiency of the U.S. breeding herd could slow some since larger, more efficient operations, those with more than 5,000 head, now account for three-fourths of the U.S. pig crop.

Also, the average annual number of pigs per breeding animal for the U.S. is now just 0.41 pigs below operations with more than 5,000 head compared with 1.26 pigs less in 1997. Likewise, the U.S. average pigs per litter is now just 0.11 pigs below operations with over 5,000 head compared with 0.31 less pigs in 1997.

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