Publication Date: May 7, 2011
Reference: Advances in Pork Production, Volume 22. 2011.
Country: Canada
Summary:
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Hog market weights have been increasing, and the trend is expected to continue. The packer’s cost are a combination of fixed and variable costs, and the per hog cost decreases with increasing volume. The fixed costs for a packer don’t change with an increase in volume, so higher weights mean an increase in profit. The profit increase is greater than the cost increase, so net profit increases with higher weights.