Drastic cuts in the size of the U.S. hog herd have created some optimism for the coming months, says a Purdue University ag economist. Quoted on the Agriculture Online web site, Chris Hurt says U.S. producers lost an average of about $20 per hog produced over the past two years, which totaled nearly $5 billion. But 2010 looks better. “The improving prospects are a result of both reductions in U.S. pork supplies and improving demand,” Hurt says. Hurt says the cutbacks could bring big demographic changes in the overall industry. “In the 1990s and early in the 2000s, hog production tended to grow in areas away from the traditional corn/hog belt,” he says. “There is some indication that the pork industry is consolidating back to the Midwest.” That’s because states like North Carolina, Texas and Utah made the biggest cuts in the herds. Even California, a relatively small production state, experienced a 65 per cent reduction in hog numbers, Hurt adds. Unfortunately productivity gains have negated some of the benefits, including a four per cent increase in the number of pigs per litter. Still, Hurt believes prices will get better through the next year, Hurt adds, largely because of tightening supplies. Pork production in 2010 is expected to be down two to three per cent but, domestic availability on a per capita basis will drop by nearly six per cent, he says.