MINNESOTA
PORK INDUSTRY PROFILE
Prepared by:
Su Ye
Agricultural Marketing Services Division
Minnesota Department of Agriculture
2009
www.mda.state.mn.us
MINNESOTA PORK INDUSTRY
TABLE OF CONTENTS
Minnesota ……………………………………………………………………………. Page 2-10
National Ranking
Cash Receipts
Production Growth
Hog Farms
Prices
County Ranking
Feed Use by Hog Production
Export
Economic Impact
U.S. …………………………………………………………………………………. Page 11-15
Pork Production & Consumption Trends
Outlook for Meat Production and Consumption
Long-term Projections for Meat Spending
Pork Export and Import Trends
Meat and Pork Export Projections
World ……………………………………………………………………………….. Page 16-18
Production, Export, and Import
Outlook for Global Pork Imports and Largest Importers
Consumption by Country & Per Capita Consumption
-1-
MINNESOTA PORK INDUSTRY
National Ranking
U.S. Top 10 Hog States (2008 Inventory) – Head
KS
2.6%
All other
14%
IA
29%
OH
3%
OK
3.6%
MO
4.6%
NE
4.9%
IN
5.2%
NC
14%
IL
7%
MN
11%
Source: USDA, NASS
U.S. Top 10 Hog States (1990-2008 Changes) – Million Head
20.0
1990
18.0
2008
16.0
14.0
12.0
10.0
6.9

Minnesota is the 3rd largest hog-producing state in the U.S.
In 2008, Minnesota had 7.5 million head of hogs, contributing 11% of the U.S.
total.
Minnesota is also one of the fastest growing hog production states in the U.S.,
achieving a 67% increase in hog marketing from 1990 to 2008.
8.0
6.0
4. 5


4.0
2.0
0.0
IA
NC
MN
IL
IN
Source: USDA, NASS
-2-
NE
MO
OK
OH
KS
MINNESOTA PORK INDUSTRY
Cash Receipts


Hog production ranks second among Minnesota’s agricultural sectors, following
corn, accounting for 16% of total agricultural cash receipts.
It is also Minnesota’s largest livestock sector, contributing 35% of the state’s total
livestock cash receipts.
Minnesota Livestock Cash Receipts by Sector (2007)
Sheep/lamb
0.3%
All other
1.1%
Poultry
17%
Hogs
35%
Cattle &
Calves
21%
Dairy
24%
Source: USDA, NASS
Minnesota’s Livestock Sectors by Ranking (2007)
(Million Dollars)
Livestock Sectors
Value
% of Total Ag
Hogs
Dairy
Cattle and calves
Poultry and eggs
Sheep and lamb
Other livestock products
$2,139.88
$1,475.93
$1,385.74
$1045.67
$18.73
$652.61
16.2%
11.2%
10.5%
7.9%
0.1%
5.0%
Total Livestock
Total Crops
$6,131.55
$7,048.91
46.5%
53.5%
$13,180.47
100.0%
Total Ag Production
Source: USDA, NASS
-3-
MINNESOTA PORK INDUSTRY
Production Growth
Minnesota Hog Marketing Trend – 1990-2008 (1,000 Head)
8,000
7,000
Trendline
6,000
5,000
4,000
3,000
2,000
1,000
08
07
20
20
06
05
20
04
20
02
01
03
20
20
20
00
20
20
99
98
19
97
19
95
96
19
19
94
19
92
91
93
19
19
19
19
90
0
19
Source: USDA, NASS
Hog Production Annual Growth Trends – MN & U.S. (1990-2008)
7,500
MN (1,000 head)
75,000
US (1,000 head)
7,000
70,000
MN
6,500
65,000
6,000
60,000
5,500
55,000
US

Hog production is one of the fastest growing livestock sectors in Minnesota,
averaging a growth rate of 3% annually from 1990 to 2008.
For comparison, the U.S. national average annual growth rate during the same
time period is 1%.
MN

US
5,000
50,000
4,500
45,000
4,000
40,000
3,500
35,000
3,000
1990
30,000
1992
1994
1996
1998
2000
Source: MDA/AMS
-4-
2002
2004
2006
2008
MINNESOTA PORK INDUSTRY
Hog Farms
Minnesota Hog Farms and Hog Inventory (1990-2007)
Farm #
8,000
Hogs (1,000 head)
14,000
7,000
12,000
6,000
10,000
5,000
8,000
4,000
6,000
3,000
4,000
2,000
2,000
1,000
0
0
Source: USDA, NASS
Minnesota Hog Inventories by Farm Size (1,000 head)
7,500
7,000
6,500
6,000
<1,000 head
>1,000 head
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1992
1997
2002
Source: Ag Census
-5-
2007
Hogs
16,000
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07

There are 4,700 hog farms in Minnesota, or 6% of the state’s 79,000 farms.
The number of hog farms in Minnesota has declined annually to 4,700 in 2007,
with mostly stable numbers in the past 4 years.
The average size of hog operations has increased, from 146 head of hogs to
1,600-plus head of hogs.
Farm #


MINNESOTA PORK INDUSTRY
County Ranking
Minnesota Top Hog Counties- 2007 (1,000 head)
900
800
79
0
700
17
1
16
0
200
21
5
19
4
23
0
23
5
24
0
24
5
25
0
27
5
300
28
0
400
33
5
500
35
5
600
49
0
100
0
W Lyo
at
on n
w
R an
en
vi
Ye
ll
llo Ste e
v
w
M e ns
ed
ic
in
e

Martin County is the largest hog producing county in Minnesota, followed by Blue
Earth, Nobles, Brown, and Mower.
The fastest growing hog production counties (ranked by the rate of growth) are:
Martin, Blue Earth, Waseca, Cottonwood, and Brown.
M
B art
lu
in
e
Ea
rt
N h
ob
le
B s
ro
w
M n
o
Fr wer
ee
b
F a orn
rib
au
lt
W
as
ec
a
C
ot Ro
c
to
nw k
oo
d

Source: USDA, NASS
Minnesota Hog Production: Top 10 Counties (1,000 Head)
2008
Rank
1
2
3
4
5
6
7
8
9
10
County
2008
Martin
Blue Earth
Nobles
Brown
Mower
Freeborn
Faribault
Waseca
Rock
Cottonwood
790
490
355
335
280
275
250
245
240
235
2000
589
365
240
230
173
201
180
157
151
154
1990
1990-2008
Growth (%)
240
171
240
153
132
182
135
77
102
91
229%
187%
48%
119%
112%
51%
85%
218%
135%
158%
All other counties
4,205
3,360 2,977
41%
State total
7,700
5,800 4,500
71%
Source: USDA, NASS
-6-
1990
Rank
1
4
5
13
7
2
6
24
17
20
MINNESOTA PORK INDUSTRY
Feed Use by Hog Production

Hog production supports crop farming through feed utilization, a significant
market for Minnesota’s corn and soybean crops.
In 2008, hog production consumed 97 million bushels of corn, about 9% of
Minnesota’s total corn crop.
Hog production also consumed 400,000 tons of soybean meal in 2008, about
41% of total soybean meal fed to all livestock.
Hogs are the largest feed users of both corn and soybean meal in Minnesota.



MN Corn Utilization (2008)
Corn: Feed Use by Hogs (2008)
Residual*
7%
Beef
15%
Other
1%
Export
42%
Processing
34%
Hogs
46%
Poultry
17%
Dairy
21%
Feed Use
17%
*Residual: all other uses
Source: PRX and MDA/AMS
Soybean Meal: Feed Use by Hogs (2008)
MN Soybean Utilization (2008)
Residual*
4%
Beef
9%
Dairy
15%
Other
0.5%
Hogs
41%
Export
40%
Crush
56%
Poultry
35%
*Residual: all other uses
Source: PRX and MDA/AMS
-7-
MINNESOTA PORK INDUSTRY
Prices
 In 2008, hog prices received by Minnesota growers averaged $49.50/cwt.
 Hog prices fluctuated from a low of $38.40/cwt. in January 2008 to a high of
$65.00/cwt. in August 2008.
 Minnesota hogs prices are generally higher than the U.S. national average.
 Retail pork prices has increased 31% from 1990 to 2008, compared to a -10%
decrease in grower prices.
MN and US: Hog Prices Received by Growers - 1990-2008 ($/cwt)
US
$58.0
$56.0
$54.0
$52.0
$50.0
$48.0
$46.0
$44.0
$42.0
$40.0
$38.0
$36.0
$34.0
$32.0
$30.0
$28.0
MN
MN
US
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Source: USDA, NASS
U.S. Retail Pork Prices - 1990-2009 (Dollar/lb.)
$3.0
$2.9
$2.8
$2.7
$2.6
$2.5
$2.4
$2.3
$2.2
$2.1
19
90
19
91
19
9
19 2
93
19
95
19
96
19
97
19
9
19 8
99
20
00
20
01
20
0
20 2
03
20
04
20
05
20
06
20
0
20 7
0
20 8
09
*
$2.0
*2009: Jan-Mar
Source: USDA, NASS
-9-
MINNESOTA PORK INDUSTRY
Export
Minnesota Live Hogs and Pork Exports (Million $)
$4.5
Live Hogs
$350
Pork
$4.0
$300
$3.5
$250
$3.0
$2.5
$200
$2.0
$150
Pork

Minnesota is the third largest pork exporter among all U.S. states.
In 2007, about 14 percent of Minnesota’s total pork production was exported.
Ten years ago, 7 percent was exported.
From 1997 to 2007, Minnesota pork exports were increasing at an annual
average rate of 15 percent, higher than the 11 percent U.S. national average.
Live hogs


$1.5
$100
$1.0
$50
$0.5
$0.0
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: MDA/AMS
Minnesota Total Livestock Exports vs. Hogs/Pork (Million $)
$1,000
$900
All livestock*
Live hogs & pork
$800
$700
$600
$500
$400
$300
$200
$100
$0
1997 1998
1999 2000
2001 2002 2003
2004 2005
*All livestock: live animals, red meat, dairy, poultry, and hides/skins.
- 10 -
2006 2007
Source: MDA/AMS
MINNESOTA PORK INDUSTRY
Economic Impact

In Minnesota, every dollar from hog production generates a total of $1.8 in statewide economic activities.
The multiplier effect of hog production to the state economy:
- Total economic output: $3.9 billion
- Total employment: 55,134 jobs.

Hog Production Impact: $3.9 billion
Economic
activities
generated by
increased
income
$0.5 billion
Additional
production
activities
$1.2 billion
Hog production
$2.1 billion
Source: MDA/AMS
Output Impact (Million $)
Employment Impact (# of jobs)
3,893
55,134
60,000
$4,000
$3,500
50,000
42,268
$3,000
$2,500
40,000
2,140
30,000
$2,000
1,241
$1,500
20,000
8,416
511
$1,000
4,450
10,000
$500
0
$0
Direct
Indirect
Induced
Direct
Total
Indirect
Induced
Total
Source: MDA/AMS
Note: Economic impacts include Direct, Indirect, and Induced impacts. Direct Impact represents hog production at
farm-level. Indirect Impact represents the production activities of all other economic sectors related to hog
production. Induced Impact represents the additional economic activities generated by the expenditures of new
income from the direct and indirect impacts. Total Impact is the sum of direct, indirect and induced impacts.
- 11 -
U.S. PORK INDUSTRY
U.S. Pork Production and Consumption



U.S. production increase by 50% from 1990 to 2008, while consumption
increased by 27%.
Pork consumption in the U.S. averages 67 pounds per person per year, which is
about 42 percent of all red meat consumption on a per capita basis.
Per capita consumption of pork has been declining in the U.S.
U.S. Pork Production & Consumption (1990-2008) – Billion Pounds
24.0
Production
23.0
Consumption
Production
22.0
21.0
20.0
19.0
18.0
Consumption
17.0
16.0
15.0
14.0
13.0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Source: USDA, ERS
U.S. Per Capita Pork Consumption (1990-2008) – Pounds
69.0
68.0
Trendline
67.0
66.0
65.0
64.0
63.0
62.0
61.0
60.0
1990
1992
1994
1996
1998
Source: USDA, ERS
- 12 -
2000
2002
2004
2006
2008
U.S. PORK INDUSTRY
Long-term Projections for U.S. Meat Production and Consumption


According to the latest USDA projections, pork production will decline between
2009 and 2011 in response to higher feed prices.
Per capita pork consumption will also decline through 2012.
- 13 -
U.S. PORK INDUSTRY
Long-term Projections for U.S. Meat Spending


With higher pork prices and rising income in the U.S., consumer meat spending
will increase.
However, overall meat expenditures represent a declining proportion of the U.S.
disposable income in the long term,
U.S. Per Capita Spending on Pork (1990-2008) – Dollars
$200
$190
$180
$170
$160
$150
$140
$130
1990
1992
1994
1996
1998
Source: USDA, MDA/AMS
- 14 -
2000
2002
2004
2006
2008
U.S. PORK INDUSTRY
Largest Export Markets and U.S. Pork Trades



U.S. pork is exported to 107 countries in the world.
The top six markets - Japan, Canada, Mexico, China, Russia, and Korea –
account for 87 percent of the total U.S. pork exports.
The U.S. is also importing pork and pork products from 16 countries, among
which, the largest suppliers are Canada, Denmark, Italy, Poland, and Mexico.
Canada is the major supplier of live hogs imported by the U.S.
Before 1995, the U.S. was a net pork importer.
U.S. Largest Pork Export Markets (2008)
Philippines
1.1%
Taiwan All other
0.9%
9%
Australia
2%
Korea
6%
Japan
36%
Russia
8%
Mexico
11.8%
Canada
13%
China
12%
Source: USDA-FATUS
U.S. Pork Export and Import: 1990-2008 (Million $)
$4,500
$4,000
$3,500
Exports
$3,000
$2,500
$2,000
$1,500
$1,000
Imports
$500
$0
19
90
19
91
19
9
19 2
93
19
94
19
9
19 5
96
19
97
19
98
19
9
20 9
00
20
01
20
02
20
0
20 3
04
20
05
20
06
20
07
20
08


Source: USDA-FATUS
- 15 -
U.S. PORK INDUSTRY
U.S. Meat and Pork Export Projections
U.S. Pork Export Trends: Largest Regional Markets ($1,000)
2,500,000
Asia
North America
Latin America
Russia
EU-27
Caribbean
2,000,000
1,500,000
1,000,000
500,000
Source: USDA-FATUS
- 16 -
20
08
20
06
20
04
20
02
20
00
19
98
19
96
19
94
0
19
92


Although the domestic market remains the dominant source of total meat
demand, exports account for a growing share of U.S. meat use.
The weak US. dollar will be a contributor for the near-term export growth.
Pacific Rim nations and Mexico are key markets for long-term growth of U.S.
pork exports.
19
90

WORLD PORK SITUATION
World Pork Production, Export, and Import






The U.S. is world’s No. 2 pork producer and exporter, and No. 3 importer.
The U.S. accounts for 9% of the world’s pork production, 19% of the world’s pork
export, and 10% of the world’s pork import.
China is the largest pork producer in the world, accounting for 53% of the total
production.
China's pork production and exports have declined since 2006 due to swine
disease and other problems.
China became a net pork importer in 2008.
In the long term, China is projected to resume growth in pork production and
export.
World’s Top Pork Producers, Exporters, and Importers (2007)
Ranking
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Top
Producers
China
U.S.
Germany
Spain
Brazil
Viet Nam
Poland
France
Canada
Russia
Denmark
Italy
Philippines
Netherlands
Taiwan
Mexico
Japan
Belgium
Korea
Thailand
UK
Ukraine
Indonesia
Serbia
Romania
Production
(MT)
61,150,000
9,952,709
4,670,000
3,221,700
3,130,000
2,500,000
2,100,000
1,982,000
1,894,380
1,788,000
1,750,000
1,600,000
1,501,000
1,295,600
1,215,000
1,200,000
1,164,500
1,000,100
915,000
700,000
700,000
650,000
597,000
560,000
525,571
Top
Exporters
Denmark
U.S.
Germany
Belgium
Spain
France
Netherlands
Poland
Canada
Brazil
Austria
Hungary
UK
Chile
Ireland
Australia
Finland
China
Belarus
Italy
China
Viet Nam
Czech Republic
Sweden
Slovakia
Source: FAO and MDA/AMS
- 17 -
Export
(MT)
1,154,908
906,508
471,124
351,195
286,769
285,598
247,967
187,249
165,507
134,687
67,917
56,723
55,582
53,991
50,869
44,853
38,313
37,441
36,034
32,542
19,582
15,966
15,356
11,868
7,586
Top
Importers
Import
(MT)
Germany
553,447
Russia
U.S.
515,991
342,256
Mexico
Italy
China
Greece
UK
Romania
France
Poland
Netherlands
Austria
Czech
Portugal
Denmark
Hungary
Australia
Slovakia
Ukraine
Spain
Belgium
Sweden
Lithuania
Belarus
238,812
229,830
178,890
168,226
142,080
135,988
101,756
89,242
83,672
69,702
64,109
63,564
51,450
51,236
45,208
37,253
33,327
30,539
27,500
26,166
26,118
25,405
WORLD PORK SITUATION
Outlook for Global Pork Imports


The world major pork importers are projected to increase purchase by about
500,000 tons (11 percent) between 2009 and 2018.
China’s increasing income boosts per capita pork consumption and raise imports
in the coming years. It will remain a small net exporter until 2018.
World’s Top Pork Importers (2007)
Germany
15%
All other
27%
Russia
14%
France
3%
Romania
3.8%
U.S.
10%
UK
4%
Greece
4.7%
China
5%
Italy
6%
Source: FAO
- 18 -
Mexico
7%
WORLD PORK SITUATION
World Pork Consumption


Pork is the most widely eaten meat in the world.
The U.S. ranks No. 2 in total consumption and No. 28 in per capita consumption.
World’s Top Pork Consumers
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Consumer Market
China
U.S.
Germany
Spain
Italy
Brazil
Japan
Russian
France
Poland
Viet Nam
UK
Philippines
Mexico
Korea,
Taiwan
Canada
Romania
Ukraine
Thailand
Austria
Serbia
Netherlands
Hungary
Indonesia
India
Czech Republic
Portugal
Australia
Belgium
Total
Consumption (MT)
46,309,933
8,848,957
4,465,638
2,730,713
2,503,801
2,424,229
2,421,029
2,316,756
2,298,887
1,933,040
1,790,735
1,545,677
1,425,830
1,328,995
1,291,181
916,000
862,390
633,723
626,135
613,414
603,538
589,630
582,435
514,203
503,728
489,419
443,136
426,206
415,461
367,450
Source: FAO and MDA/AMS
- 19 -
Consumer Market
Per Capita
Consumption
(Kilograms/Year)
Austria
74.00
Spain
Denmark
Serbia
Germany
Hungary
Poland
Cyprus
Ireland
Czech
Italy
Portugal
Taiwan
Slovenia
France
Sweden
Netherlands
Belgium
Bulgaria
China
Switzerland
Finland
Lithuania
Malta
Slovakia
Belarus
Estonia
U.S.
66.00
63.00
56.00
54.00
52.00
50.00
45.00
44.00
43.00
43.00
42.00
42.00
39.00
38.00
37.00
36.00
35.00
35.00
35.00
35.00
33.00
33.00
32.00
32.00
30.00
30.00
30.00
Bahamas
Romania
28.00
28.00
Minnesota Department of Agriculture (MDA)
Our mission is to enhance Minnesotans' quality of life by ensuring the integrity of our food supply, the
health of our environment, and the strength of our agricultural economy.
Our three general areas of responsibility include:
 Protecting our food supply;
 Protecting our natural resources; and
 Cultivating our agricultural economy.
The MDA’s Agricultural Marketing Services Division (AMS) works to develop and diversify Minnesota's
agricultural industries, markets and products through market research, market promotion, education and
technical assistance. Division programs focus on developing domestic and international market
opportunities for Minnesota producers and marketers.
For more information, please contact:
Agricultural Marketing Services Division
Minnesota Department of Agriculture
625 North Robert Street
St. Paul, MN 55155
Tel: 651-201-6384
Fax: 651-201-6114
E-mail: [email protected]
Web: www.mda.state.mn.us
April 2009
IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES’ ACT, AN ALTERNATIVE FORM OF COMMUNICATION
IS AVAILABLE UPON REQUEST. TTY: 1-800-627-3529
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