Economics

 Industry Partners


Prairie Swine Centre is an affiliate of the University of Saskatchewan


Prairie Swine Centre is grateful for the assistance of the George Morris Centre in developing the economics portion of Pork Insight.

Financial support for the Enterprise Model Project and Pork Insight has been provided by:



Author(s): Dale Miller
Publication Date: January 1, 2009
Reference: National Hog Farmer, July 15, 2009
Country: USA

Summary:

There were a few wisps of optimism — a fractionalized resiliency that often accompanies pork producers attending trade
shows. Clearly, many were on the lookout for new ways of squeezing a little more efficiency out of their already tightened down production units. The more seasoned in the crowd reassured others that the pork industry had been through tough times hefore — perhaps not this tough — hut tough nonetheless. Pork producers and allied industry representatives often spoke in somber tones as economists delivered less than- good news about the prospects
for a return to profitability. One universal point gained consensus — the U.S. sow herd is too big
and too productive for the current domestic and global economic conditions and per capita pork consumption
trends. As feed costs climbed, pressure to save more pigs increased. A move to later weaning nudged the pigs weaned per litter average upward, those pigs were finished at heavier weights, and the percentage of pork exported to
foreign customers climbed. The march toward greater productivity and efficiency has been steady, but this lockstep advancement has bumped into a wall made up of a global economic downturn, a wrongly named influenza virus, and a backlash that will likely be felt well into the New Year. Those committed to staying in the pork industry must look for strategic partners who will help develop a risk management/survival plan that will help carry them through this year and into the next. Those who step forward to stand with business-minded pork producers will build trust and loyalty that will serve them well when profitability returns — and it will. Many difficult decisions will be
made in the coming months. Some will be made slowly, deliberately. Some will be made out of necessity.
All will likely carry emotional and economic price tags that will linger.

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