Butter and Lard: Factors Associated with the Current Downtrend in Production

Excerpts from the report: Monthly lard production has dropped sharply since early 1965. The situation for butter is similar since mid-1965. During October-February 1965-66, output of these 2 food fats was a fourth below a year earlier. The drop in lard output, to the lowest point since World War II, reflects reduced hog slaughter and a lower lard yield per hog. The drop in butter production, to the lowest point since 1951, reflects the decline in milk cows and increased competition among dairy products for reduced milk supplies. In sharp contrast, soybean oil production since last fall has been record-high due in part to an unusually strong domestic demand. The remainder of this paper briefly examines some of the main underlying factors associated with the current downturn in butter and lard production in the United States. The analysis is concerned with only creamery butter and commercial lard as farm output of both commodities has trended downward steadily since World War II.