The pork industry in Texas is a vital component of the state’s agricultural economy, contributing significantly to overall economic activity. In 2023, hog marketings generated $360.44 million in gross cash receipts, illustrating only a fraction of the total economic influence of the pork sector. Beyond direct sales, the industry supports a range of jobs and earnings, playing a crucial role in the state’s economic framework.
With approximately 7,207 jobs connected to various facets of the pork value chain—from suppliers and producers to processors and integral businesses—the industry’s reach extends far beyond the farm. These roles are essential for maintaining the $421.35 million in personal income and the $646.98 million in gross national product associated with Texas pork production in 2023.
The table below summarizes the total jobs, personal income, value-added, and sales supported by hog production and pork processing in Texas, based on 2023 levels of production.
| Jobs | Labor Income | Value Added | Output | |
| Direct | 3,605 | $191,863,633 | $247,227,512 | $1,498,049,277 |
| Indirect | 1,955 | $133,356,364 | $220,848,108 | $485,201,737 |
| Induced | 1,648 | $96,128,265 | $178,906,797 | $314,236,262 |
| Total | 7,207 | $421,348,262 | $646,982,416 | $2,297,487,277 |
The structure of the pork industry in Texas has evolved over the years, marked by fluctuations in hog inventories and changes in farm numbers. Hog inventories have increased from 920,000 head in 2000 to 1.17 million head by the end of 2023. Although the number of hog farms decreased from 7,431 in 1997 to 5,894 by 2017, there has been a slight drop to 5,837 farms by 2022. Despite fewer farms, the average inventory per farm has risen significantly, reflecting a shift towards larger-scale operations.
The value chain of the Texas pork industry is complex, encompassing not only the direct sale of hogs but also extensive backward and forward linkages. Backward linkages involve the purchase of inputs and services required for hog production, while forward linkages pertain to activities beyond the farm gate, such as slaughtering, processing, and food preparation. These linkages create additional economic impacts across various sectors within the state.
Different production systems, such as farrow-to-finish, breed-to-wean, and wean-to-finish, operate within Texas, each contributing differently to the economy. The farrow-to-finish system, in particular, benefits from economies of scale, reducing per-unit input costs as operation size increases. This structure allows for more efficient production and significant cost savings.
Estimating the labor requirements for hog production is challenging due to the variety of farm operations. Based on a full-time equivalent (FTE) standard, which accounts for 2,080 hours per worker annually, the industry requires an estimated 397 workers to maintain current production levels. Despite the relatively small number of FTE workers, the industry’s broader economic influence is substantial, involving numerous farms and associated businesses.
The total value of inputs for hog production in Texas, including feed and labor costs, amounts to $243.80 million. This figure underscores the substantial investment required to sustain the industry. Moreover, the pork sector’s indirect economic contributions through purchases and services amplify its overall impact, supporting a wide range of jobs and further economic activity.
An input-output (I-O) model was employed to capture the Texas pork industry’s full economic contribution. This model highlights the extensive inter-industry transactions and underscores the significant economic ramifications if the pork sector were to be removed from the Texas economy. The I-O model integrates data from hog marketings, production costs, and employment estimates, illustrating the comprehensive economic footprint of the pork industry in Texas.
In summary, the Texas pork industry is a cornerstone of the nation’s agricultural economy, driving significant economic activity through direct sales, extensive value chains, and substantial backward and forward linkages. Its contributions to employment, personal income, and gross national product highlight its critical role in sustaining Texas’s economic vitality and growing our repertoire among the national rankings.