Environment, Education, Energy: Policy to People

Bacon Inflation: What You Need to Know

Sidereal / Flickr

The Oklahoma Pork Council has issued a dire warning:

“Pork prices are going to rise in 2013, there’s just no way around it,” executive director Ron Lindsey tells the Shawnee News-Star‘s Carmen Bourlon.

Bacon will be most affected by the porcine price hike, though customers in the United States probably won’t suffer any pork shortages, Lindsey tells the paper. The United Kingdom might not be so lucky, he says.

So what’s driving up pork prices? It’s all about corn, which is a primary component of hog feed.

Corn crops across the country were wrecked by the drought, which is tightening supplies. Short corn supplies drove the price of corn futures to a “nominal all-time high” in August. But the prices are starting to fall because traders are worried that high prices could strangle demand, the Wall Street Journal reports:

Traders now are waiting for a final U.S. government estimate of the size of the country’s corn harvest, and for further signs of how much demand has been eliminated.

High corn prices mean more expensive feed, and “many producers are cutting back on hog production,” the Pork Council’s Lindsey tells the Shawnee paper.

StateImpact Oklahoma is a partnership among Oklahoma’s public radio stations and relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online.


About StateImpact

StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.
Learn More »