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Hog Profits in 2002 and 2003

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After three profitable years, total economic costs exceeded total returns for hog producers in 2002. Lower market hog prices, especially during the last three quarters of the year, were the main factor for the negative profit margin. Feed costs did increase some in 2002 but were still at relatively low levels. Projections for decreased pork production resulting in higher hog prices along with lower feed costs during the second half of the year could result in a narrow but positive profit margin for producers in 2003.

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