Consumers Are Paying Record-High Bacon Costs, but Pork Producers Aren’t Seeing the Profits

With world food prices at a 10-year high, consumers in the U.S. are now paying on average about $7 per pound of bacon, the highest prices ever paid since data collection began in 1947. Consumer demand and a rise in exports are driving the price jumps, but producers aren’t seeing the same increase in profits. Lean hog futures, for example, are sitting in the high $70’s, a distant memory from the $120 price in June.

So where is the extra profit going? Some believe it’s being offset by the supply chain disruptions, along with packers needing to spend more time and money maintaining operations and keeping employees. With demand expected to continue and prices climbing, producer profitability will continue to be a topic of conversation. Read more on pork production and bacon costs here.