The US Department of Agriculture (USDA) has released a new analytical report examining structural changes in the country's hog industry over the past 40 years.
According to the report, between 1982 and 2022, the US hog and pig inventory increased by 37%, while the number of farms with at least one hog or pig declined by 82%. This reflects the continuing concentration of production in larger-scale operations.
The average production volume per farm has also increased significantly. In 1998, farms producing feeder pigs sold or transferred an average of 1,049 pigs per operation. By 2020, this figure had risen to 3,701 pigs. A similar trend was observed for market hog operations, where average sales increased from 1,540 to 5,433 hogs per farm over the same period.
Between 2002 and 2022, the strongest production growth was recorded among farrow-to-wean operations, where the number of pigs sold increased by 80.3%, as well as among finishing farms. In contrast, farrow-to-feeder operations declined by 79% during the same period.
Another major trend has been the expansion of contract production. According to USDA, the inventory of hogs and pigs raised under production contracts increased from 31.3 million head in 2002 to 48.2 million head in 2022, representing a 54% increase.
Meanwhile, the inventory managed by independent producers declined from 31.2 million to 25.6 million head, an 18% decrease. As a result, the share of the national hog inventory accounted for by contractors and contract growers increased from 50% to 65% over the two decades.
USDA also reports a growing level of farm specialisation. Between 1998 and 2020, the average share of total farm production value generated by hog production increased from 56% to 80%.
At the same time, fewer hog farms continue to grow their own corn, soybeans, or small grains, indicating a shift toward greater production specialisation and increased reliance on purchased feed rather than home-grown feed.
According to industry analysts, the transformation of the US pork sector reflects a broader global trend toward greater production concentration, increased specialisation, and vertical integration. While these changes have improved production efficiency, they have also increased producers' dependence on large integrated companies and contract production systems.
PigUA.info, based on 3tres3.com