Dr. Steve Meyer provided a thorough economic update at World Pork Expo, while also proudly representing his alma mater Oklahoma State University.
Story by Oklahoma Pork Intern Gus Ward
This week I had the opportunity to attend the World Pork Expo for the first time. It was a great experience to attend, not only as an Oklahoma Pork Council representative, but also as an Oklahoman! To say I am proud to attend would be an understatement as I experienced many impressive things this week such as new technologies within the pork industry, networking, and character building. Although I enjoyed every second of my time at the Iowa State Fairgrounds this week, I would say that a highlight of my time in the Hawkeye State was getting the opportunity to attend the business session called An Economic Outlook for the Pork Industry.
Joe Kerns, President of the Livestock Division at Ever.Ag, opened the session by discussing the revenue side of pork production. He stated, “Good things come to those who wait, or to those that can survive just a little longer.” Although this may sound a little harsh, I think it really highlights the resilience required to be a producer within the pork industry.
Dr. Steve Meyer, the second speaker, a personal role model of mine, and the lead economist at Ever.Ag, provided his version of an economic outlook as well. Dr. Meyer stated, “2023 was not a banner year for hog producers.” He also compared it unfavorably to 1998 but pointed out that 2021 was a very strong year. He stated that the unusual trend of pork numbers falling in 2023 despite a constant pork population over the past four years, attributing productivity gains to increased pigs saved per litter.
Other key topics discussed included the impact of recent governmental policies on agriculture. Both Mr. Kerns and Dr. Meyer discussed corn and soybean production. Dr. Meyer explained the concept of inelastic demand, where consumption remains steady regardless of price changes, which is significant for essential commodities like pork. He also discussed the economic impact of COVID-19 stimulus payments on the pork industry. He stated that these checks added about $13 trillion to the money supply and temporarily boosted pork demand, which is part of the reason that 2021 was such a great year for the industry.
Dr. Meyer provided a global perspective that I found very interesting. He stated that the U.S. will be the top pork exporter in 2024, with an 8% increase so far this year. He also highlighted that since Mexico has recently become the largest exporter of goods to the U.S., the Mexican Peso has strengthened by 22%.
Overall, the economic update at World Pork Expo was very enlightening. It provided a wealth of knowledge and valuable insights from industry leaders like Joe Kerns and Dr. Steve Meyer. Their expertise shed light not only on the current state of the pork industry, but also on the future of pork production. This trip was an exceptional start to my internship this summer. It offered an opportunity to engage with key figures in the industry and understand the opportunities within all aspects of the pork industry. I am truly grateful for this experience and excited to see what lies ahead in my journey with the Oklahoma Pork team.