The substantial swings in feedgrain prices in 2008, along with prospects of only modest profits in 2009, have pork producers asking their trusted advisors a lot of serious questions about positioning their operations for better times. With the potentially conflicting opinions, it is easy for producers to become confused as they attempt to make sound business decisions. To prosper in these periods of rapid price gyrations, the successful producer is wise to rely on consensus from his advisory team. Notice that I stressed “team.” In my experience, there is much to be gained in strategic planning by producers of all sizes and types of agricultural enterprises when all of the individuals providing information and advice are involved in the discussion and decision making process. Who you select for your advisory team depends largely on the skills and talents that are missing in your daily decision-making process. Most often, this team will include: a lender who understands the financial consequences of your decisions; a nutritionist who understands your biggest cash expense – feed; a veterinarian who specializes in hogs and understands the health
implications of any change in production technology; and someone who understands your biggest fixed expense – facilities. In addition, you quite possibly will need input from your tax advisor if you are considering major investments or decisions that could have tax consequences. Together, this team can help you formulate a plan that should keep you successful in the business of pork production for many years to come.