In the past, I have discussed the history, economic impact, and controversy surrounding pork production in North Carolina. However, while North Carolina is a top producer of pork, the industry across the United States plays a vital role in the economy.
Taking a look at a recent report from the National Pork Producer Council, In 2023, the U.S. pork industry made a substantial impact on the national economy, generating $27.7 billion in gross sales at the farm level. Hog marketings alone were valued at $24.4 billion. The industry’s backward and forward linkages further amplified its economic contributions, with processing and exporting pork products playing key roles.
The pork industry supports a vast network of suppliers and service providers, creating a multiplier effect that enhances economic activity across various sectors. According to an input-output (I-O) model run by the National Pork Council, it is estimated that the industry supports 573,311 jobs and contributes $62.7 billion to the national GDP.
The pork industry is a significant employer in the U.S. agricultural sector. Labor requirements vary based on the size and type of operation, with smaller farms typically requiring 3.19 full-time equivalent (FTE) workers per 10,000 hogs compared to 2.24 FTE workers per 10,000 hogs on larger farms. Overall, the industry employs over 30,000 FTE workers on the farms alone, supporting rural communities and contributing to local economies.
Feed is the largest single expenditure in hog production. The U.S. pork industry consumes substantial quantities of corn and soybean meal, supporting domestic agriculture and related industries. The interconnected nature of these sectors means that the prosperity of the pork industry directly benefits feed suppliers and the broader agricultural economy. Specifically, in 2023, the industry used $11 billion worth of feed, primarily corn and soybean meal.
Furthermore, the U.S. is a major player in the global pork market, with approximately 25 percent of production exported in 2023. These exports are vital for maintaining the industry’s profitability and supporting thousands of jobs. Export activities generated $8.2 billion in sales, reinforcing the industry’s economic relevance on a global scale.
North Carolina is one of the leading states in U.S. pork production, contributing significantly to the industry’s overall economic impact. The state’s hog farming sector is a powerhouse, driving economic activity and supporting thousands of jobs. North Carolina is the second-largest hog producer in the U.S., with approximately 9 million hogs raised annually, contributing $10 billion to the state’s economy.
The state’s pork industry also plays a crucial role in supporting local agriculture. The consumption of corn and soybean meal for feed bolsters local farming communities and enhances the value chain. Additionally, North Carolina’s pork producers are key contributors to U.S. pork exports, helping to meet global demand and generate income for the state.
Despite its successes, the U.S. pork industry faces challenges such as labor shortages, disease pressures, and market access issues. Labor shortages are particularly acute in rural areas, making it difficult to find skilled workers. Disease prevention and biosecurity remain critical to maintaining productivity and market stability. Expanding market access and removing trade barriers are essential for ensuring the industry’s continued growth and contribution to the economy.
In conclusion, the pork industry is a vital component of the U.S. economy, with significant contributions to national and local economies, particularly in states like North Carolina. Addressing challenges and leveraging opportunities will ensure the sustained growth and economic impact of the U.S. pork industry.
