Bacon Crisis 2017: US Pork Reserves Are The Lowest They've Been In 50 Years

It’s no secret Americans love their bacon, but as demands for the breakfast favorite continues to rise across the U.S., supplies are starting to dwindle. A U.S. Department of Agriculture (USDA) report released Thursday said 2016 bacon inventories only accounted for 17.8 million pounds of frozen pork belly, where bacon comes from.

The amount is the lowest number of bacon inventory in 50 years, the report said, with bacon reserves decreasing by 35.6 million pounds in 2016. Pork reserves dropped by roughly 41 million pounds between November and December 2016. In 2015, 53.4 million pounds of bacon were listed in inventory reports, the USDA said.

Although inventories are running lower than ever, Ohio Pork Council (OPC) President Rich Deaton said in a statement Tuesday that the pork industry would not run out of bacon.

“Today’s pig farmers are setting historic records by producing more pigs than ever. Yet our reserves are still depleting,” he said. “While bacon may become more expensive for consumers, rest assured pork industry will not run out of supply. Ohio farmers will continue to work hard to ensure consumers receive the products they crave.”

The USDA forecast pork production would increase by 5.1 percent throughout 2017 to meet demands.

Due to the shortage of the fatty breakfast delicacy, bacon eaters might see another rise in pork belly prices. OPC officials said along with American’s demand for bacon, growing foreign interest in the meat could also be to blame for the bacon deficiency, which could lead to rising prices.

A USDA report said pork belly demands skyrocketed by 174 percent in August 2015, resulting in wholesale prices rising to $1.6968 a pound that year.

“It’s really demand that’s driving this,” Ryan Turner, a risk management consultant at FEStone Group in Kansas City, Missouri, told Bloomberg at the time. “People are putting bacon on anything.”

The 2015 price rise came following the biggest bacon price increase in 2014, which led to grocery store prices reaching as high as $6.11 per pound.