I believe "arbitrage" was the buzzword at the merger meetings.
There is really good money in selling/making feed, especially when most of the competition in a 100 mile radius has been merged together.
Hog buildings may eventually be the downfall of some of these "coops" that are going wild backing the building of hog barns. A quote from the local coop newsletter - "After the summer and fall seasons, we hope to have well over 60,000 new swine spaces in the system." I heard a local contractor got the bid on work for next year's addition to the "system" big enough for him to require a 7 digit earnest payment up front. Must be quite a system - I might have to look into joining in! Seems to be the thing to do lately.
|