ABERDEEN, S.D. (AP) — With hog prices at or below the break-even point, some hog farmers are filing for bankruptcy, getting out of the business or are just plain losing money.
Industry official Mitch Truebenbach of Frederick said farmers are getting about 35 cents a pound for a market hog — but it takes 41 cents a pound to break even.
Truebenbach founded AgriSwine Alliance, which manages James Valley Pork Cooperative's operation in the area. He said the industry's losses the past two years compare with those of the auto industry.
But hog farmers might be at break-even or in the black by the second quarter of next year, he said.
Truebenbach said markets for U.S. pork are starting to rebound in Russia and Mexico, while reports indicate U.S. pork consumption is on the rise.
The number of hogs has been dropping as farmers sell out. Truebenbach said the number of sows going to market in mid-August was 17 percent higher than a year ago.
"Everybody has lost equity, and banks are saying 'enough is enough.' I have good friends who have had to quit the business," he said.
Jim Sperry of rural Bath, a James Valley Pork leader, said hog farmers are flooding bankruptcy court.
Canada has a federal buyout program for hog raisers. There, 35 percent of swine herds have been liquidated, Truebenbach said. The U.S. has no such program, but the federal school lunch program likely will use more pork to cut into the supply, Truebenbach said.
Even though it makes no profit now, the James Valley group keeps its operation full of hogs, he said.
"We like to keep the barns full, so we can be in position to make some money when the market does turn around."
