Save the bacon: Revenue is declining due to falling prices of inputs and other meats

The Hog and Pig Farming industry, like other livestock industries, is enduring hard times for many reasons, one of which is the impact of commodity prices. In particular, industry revenue is determined by the price of feed, which has been highly volatile over the five years to 2018. Feed is the largest input cost for industry operators, so the price of feed is correlated with the price of pork. If the price of pork falls, industry production will likely increase, but total revenue will fall. Over the next five years, demand for hogs and pigs is also projected to fall further. The price of red meat is projected to fall, while the price of poultry meat is projected to rise. In addition, per capita pork consumption is projected to remain relatively stable...purchase to read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 13-18
-5.4%
Forecast Growth 18-23
Profit
Employment
73,555
Businesses
22,848
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Falling feed prices have led to declining pork prices and sales
  • The industry has declined as many operators have left due to low profit margins
  • The price of feed is one of the biggest determinates of the price of pork
  • Industry Report - Industry Key Buyers Chapter

    Concentration in the Hog and Pig Farming industry is low compared with other US economic sectors; however, the large number of corporate hog and pig farms makes the industry more concentrated than most other US livestock industries. The top three companies in the industry are expected to account for 8.4% of industry revenue in 2018. Concentration has been rising over the past five years as independently operated farms decrease in numbers; according to a report for the United States Department of Agriculture (USDA), the number of hog farms has declined by more than 70.0% over the past 15 years. The...purchase to read more.

    Additional Insights for the Hog & Pig Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hog & Pig Farming Industry are

  • Use of specialist equipment or facilities
  • Proximity to key suppliers
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Price of red meat and Demand from meat, beef and poultry processing in the Hog & Pig Farming industry impact industry performance..

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    What's in this report

    What is the Hog & Pig Farming Industry?

    Establishments in this industry farm hogs and pigs in operations that include breeding, farrowing, weaning and raising feeder pigs or market-size hogs. The term pig usually refers to the domestic mammal when it is young or small, while hog is the name typically given to domesticated pigs that weigh more than 120 pounds. While hog feedlots are included in the industry, the transportation of the livestock is excluded.

    Industry Products
  • Market hogs
  • Feeder pigs
  • Cull stock
  • Breeding stock
  • Industry Activities
  • Farrow-to-finish operations
  • Feeder pig farming
  • Hog feedlots (except stockyards for transportation)
  • Hog and pig farms (including breeding, farrowing, nursery and finishing activities)
  • Weaning pig operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of red meat
  • Demand from meat, beef and poultry processing
  • Per capita pork consumption
  • Price of poultry meat
  • Price of feed

  • Current Performance
  • Plummeting prices
  • More meat
  • Live hog trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Price competition
  • Slowed company growth
  • Minimal trade
  • Table: Hog & Pig Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hog & Pig Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hog & Pig Farming
  • Meat, Beef & Poultry Processing
  • Beef & Pork Wholesaling
  • Cattle & Hog Wholesaling

  • Key Selling Industries
  • Animal Food Production
  • Cattle & Hog Wholesaling
  • Corn, Wheat & Soybean Wholesaling
  • Farm Supplies Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Hog & Pig Farming
  • Livestock Production Support Services
  • Veterinary Services

  • Products & Services
  • Market hogs
  • Feeder pigs
  • Breeding stock
  • Cull stock
  • Chart: Hog & Pig Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Price points
  • Supply and demand
  • Health concerns

  • Major Markets
  • Pig and hog processors
  • Other pig farmers
  • Export and other
  • Chart: Major Market Segmentation for the Hog & Pig Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Hog & Pig Farming

  • Basis of Competition
  • Major operators
  • Independent contractors
  • Animal welfare
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hog & Pig Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hog & Pig Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hog & Pig Farming Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Red Meat (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Farrowing
  • The act of breeding and raising pigs for sale.
  • Feeder Pig
  • A weaned female swine or male hog castrated before sexual maturity and sold to be finished for slaughter.
  • H1n1
  • A new strain of swine-origin influenza that was discovered in 2009 and caused a subsequent pandemic in the United States.
  • Hazard Analysis And Critical Control Points
  • A safety system for food and pharmaceuticals that addresses physical, chemical and biological hazards as a means of prevention; also known as HACCP.
  • Sow
  • A female pig that has given birth to a litter of piglets.
  • What Our Customers Say

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    This report on Hog & Pig Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hog & Pig Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hog & Pig Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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