Economics

Swine Industry Update: Producers are Nervous


 
 

Mark Greenwood
February 2008

Producers are Nervous – I attended both the Minnesota and Iowa Pork shows this month and there are a lot of producers that are nervous about the future of the Pork industry. I spoke to several groups and outlined what I am currently seeing in the countryside. There are very few systems that locked in 4th quarter and 1st quarter of 2008 margins. I have been asked to give an estimate on margins that were covered and I would say 30-35% have feed coverage and hog coverage through that time period. These producers that locked in that amount of coverage are still losing over $20 per head. Even if you locked in the futures on hogs, the basis widened dramatically because of the large slaughter numbers. In summary, swine economics are ugly and people are hoping that we will see some liquidation.

SwineCast 0286 for March 14 2008

SwineCast 0286 Show Notes:

  • "We estimate losses of $27 per head on average for 2008 for farrow-to-finish operations and those taking the market risk" - Chris Hurt
  • Ron Plain looks at feed price support elements
  • Belstra Milling's Jon Hoek explains why his organization bends over backwards to engage the local citizenry
  • Dr Dennis DiPietre stops by to look at impact of outside influencers on our markets... today we discuss stagflation and the importance of world markets
  • PCVAD update with Dr Lisa Tokach speaking at Pigski in Colorado

SwineCast 0281 for February 26 2008

SwineCast 0281 Show Notes:

  • Paul Jeske at Pigski reports his experience with the new upper midwest strain of PRRS his practice is investigating
  • Iowa Select's Joe Kerns shares important pricing knowledge and the possibility of another marketing opportunity
  • Iowa State's fuels and feeding info
  • Exploring feedstock alternatives in Canada
  • Manager's minute with Sarah Fogelman... more than filling an opening
  • USDA says the next decade should be plenty positive for ag 

SwineCast 0279 for February 19 2008

SwineCast 0279 Show Notes:

Swine Industry Update: Bad As I Have Ever Seen

Mark Greenwood
January 2008

Bad As I Have Ever Seen - The current economics of the pork industry makes me look back at 1998 and 1999 and that seems not as bad. With most producers in the last 60 days getting maybe a $100 for their hogs on the open market and with cost of production on close outs at $140 a head producers are losing money quickly. The other part of this equation is that cost of production keeps going up with corn in Southern MN at $4.75 a bushel and soybean meal at $330 a ton. In looking at cost per head on a farrow to finish operation we are over $90 per head! We were almost at a point where feed costs were not being covered by what the producer was receiving for revenue. The mood of the industry is one of almost disbelief and fear.

2008 Iowa Pork Congress: Profit Drivers for Small Herd Niche Operations

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Profit Drivers for Small Herd Niche Operations WMV File

In this session, Dave Stender will provide information from on farm data summarized for over 40 niche swine producers, including cost and performance measures. Benchmarking critical management areas and outlining the relationship of cost structure and performance in the data set will also be discussed.

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By Dave Stender, Iowa State University Extension

2008 Iowa Pork Congress: Occupational Health and Safety for Pork Producers and Employees

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Occupational Health and Safety for Pork Producers and Employees WMV File

Kelley Donham is the Director of the Iowa's Center for Agricultural Safety & Health (ICASH) which is dedicated to helping keep Iowa's producers alive and well in agriculture.

This seminar will provide an overview of the potential illnesses and injuries that may result from working with pigs and in the buildings. New information will be presented on a comprehensive program called Certified Safe Farm. Results of the program will shared such as cost savings in lowered medical care costs, increased use of personal protective equipment, and decreased respiratory illnesses. They will also introduce an initiative to educate workers via a web-based distance learning program that will include materials produced by the National Pork Board.

Powerpoint file attached below, right click on link and download to your computer.

By Kelley Donham & Risto Rautiainen, University of Iowa

2008 Iowa Pork Congress: Managing Input Costs: Are There Any Good Options?

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Managing Input Costs: Are There Any Good Options? WMV File

Feed ingredient costs have reached new highs and new levels of volatility. This session will address reasons for the changes, the prospects for future cost levels and some idea about what producers can do to optimize input costs.

Powerpoint file attached below, right click on link and download to your computer.

By Steve Meyer, Paragon Economics

2008 Iowa Pork Congress: Minimizing Feed Costs for Improved Profitability

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Minimizing Feed Costs for Improved Profitability WMV File

Joel DeRouchey's presentation will focus on minimizing feed costs by discussing management and formulation practices to increase feed efficiency and how to evaluate alternative feed ingredients.

Powerpoint file attached below, right click on link and download to your computer.

By Joel DeRouchey, Kansas State University

2008 Iowa Pork Congress: Road Trip - Lessening the stress of transportation

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Road Trip - Lessening the stress of transportation WMV File

Understanding the leading causes of stress during transport and how to decrease them can not only improve animal well being, but also decrease economic losses. This session will focus on transportation and how to reduce stress on the animal.

Transportation is one of the most overlooked areas in animal production, yet one of our most vital and visible.

Powerpoint file attached below, right click on link and download to your computer.

By Jennifer Woods, Reflected J Livestock
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