Michigan
The Michigan Pork Industry
The Michigan pork industry adds significant value to the agricultural economy and is a major contributor to the overall Michigan economy. Although the size and structure of the Michigan pork industry has changed over time, current levels of production continue to support jobs and generate earnings in the state economy. In 2021, the sales generated from hog marketings and pork processing supported a total economic contribution of over $562.27 million in personal income, over $874.6 million in value added, and more than 10,513 jobs in the Michigan economy.
Total Economic Contribution
All direct, indirect, and induced economic activity supported by the Michigan Pork Industry.
10,513
jobs supported by the pork industry
$874M+
value added (GDP)
$562M+
personal income generated
Hog Farms and Production
There are about 1.16 million hogs in Michigan. The size of the Michigan hog herd has varied over time but has trended upward from 950,000 head in 2000 to 1.16 million head in 2021. As of December 2021, Michigan farms accounted for 1.6% of the total U.S. hog inventory.
The number of Michigan hog farms has decreased slightly in recent years. From 1997 to 2012, the number of farms decreased from 3,316 to 2,198, and by 2017 Michigan had 2,017 farms raising hogs.
Approximately 73% of Michigan hogs are on farms with 5,000 or more in inventory. 18 percent of Michigan’s hogs are on farms with 2,000 to 4,999 head, and eight percent are on farms with less than 2,000 head.
Hog Production Costs and Returns
In 2021, hog sales (including market hogs, sows, and feeder pigs) totaled $489.89 million. In addition to these farm-level effects, the pork industry supports other industries by purchasing inputs, supplies, and services. Based on long-run prices and aggregated production budgets for the Michigan pork industry, producing 2.481 million market hogs in Michigan generates over $363.5 million in feed, labor, equipment, and other production-related expenditures.
Hog Production by the Numbers
2,017
number of farms with hogs
2.481M
hogs marketed annually
$489M+
cash receipts from hog sales
Feed is the largest single expenditure category in pork production. With 2.481 million market hogs produced annually, feed costs for the Michigan industry exceed $204.1M. Other direct expenses, like energy and transportation, add over $79.76M, employee compensation totals over $36M, and facility-related expenses add over $43.6M.
Jobs Supported by the Michigan Pork Industry
The direct, indirect, and induced activity generated by the Michigan pork industry in 2021 supported a total of 10,513 jobs and over $562.27M in personal income. Michigan hog farms and pork processors directly employed 3,816 workers and paid over $215.8 million in total wages. This includes 575 full-time-equivalent workers at the farm level and an estimated 3,144 employees in the hog slaughter and processing sectors.
The purchases of input supplies and services in the pork industry indirectly supported 4,149 jobs and over $219.69 million in personal earnings for Michigan workers. Beyond this, the induced impacts stemming from employee spending included 2,548 additional jobs and over $126.735 million in personal income earned. Many of these jobs were within the agriculture and manufacturing industries, as well as industries like trucking, finance, insurance, real estate, trade, and other service sectors.