WASHINGTON — Following a two-year period of contraction in the US swine herd, pork supply is inching upward, according to the National Pork Producers Council’s (NPPC) second quarter report for 2023. With 66,000 pig farms, which together produce 140 million hogs annually, the United States continues as a global leader in pork production.

“The United States is a worldwide leader in pork production and a significant contributor to the US economy,” said Duane Stateler, NPPC vice president and a pork producer from Ohio. “While many factors can impact our business, especially during this period of high inflation and difficult market conditions, pork producers around the country will continue navigating the economic challenges to ensure we raise safe, wholesome, affordable food for communities here and around the world.”

The report said US pork production increased 2.3% through the first quarter. The US Department of Agriculture now estimates a 1.4% annual increase in pork production in 2023. Despite the upward trend, the US breeding herd is still around 300,000 sows smaller than the March 2020 inventory.

Retail pork prices have begun to decline after a record-high year in 2022. Reports as of March 2023 show a 1.7% drop from a year ago at $4.76 per pound. Wholesale prices are down 27%.

In 2022, pork exports totaled 6.3 billion lbs, which accounted for 23.5% of annual production. Last year, pork exports were down from 2021 levels. However, NPPC reports new momentum going into 2023. Through February 2023, pork exports were up in volume by 11.3% and up in value by 12.7% compared to the previous year.

NPPC’s report estimates that pork exports contribute to approximately $9.1 billion of income in the US economy.

“Any event — such as an outbreak of a foreign animal disease — that causes a disruption or loss in market access could result in a 40% to 50% drop in hog prices and severe impacts throughout the economy,” the report said.

The pork industry supports more than 610,000 jobs in the United States. From September 2021 to 2022, the number of workers declined by 0.4%, while the total value of wages increased by 12.1%.

“If not addressed, domestic labor shortages will continue to be a limiting factor in the pork industry even if the broader US labor market begins to see a slowdown in hirings and wage growth,” the report said.