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Hog finishing contracts
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Kooiker
Posted 6/10/2011 08:17 (#1812225 - in reply to #1812185)
Subject: Re: Hog finishing contracts



Pat I respect your opinion a lot but around this area there are still lots of people willing to put up hog barns for the manure.  Many of these barns the owner of the barn never steps foot in the barn once it is filled with pigs.

 

One neighbor I know of had his previous contract run out in 2008 (last time corn was high) the outfit he was feeding for wanted the "latest and greatest" feeders installed and were offering less money than he had been getting.    The neighbor was not very happy.   He eventually found a different company to feed for that also wanted new feeders but they were offering the same $ that he had been getting.

 

I am very scared for the near term future of pork production.   I think there is a lot of overcapacity out there right now, there are sow units that were depopulated about a year ago that are just about getting ready to wean pigs. They depopulated when pigs were losing money, cleaned up their disease problems, got restocked because pigs were expensive and hogs were profitable and now they are about ready to start weaning pigs again.

Pigs are already cheap, they're gonna get really cheap once those depopulated units start weaning pigs and the corn situation gets worse.

Same thing about finishing buildings, once they are built they are there to be used until they are bulldozed over.    When pigs are in short supply the older buildings sit empty, when there's lots of pigs to be fed those older buildings get filled up again (at least here thats how it works).

 

 

Long term I think the future looks bright but I honestly don't think that consumers can afford to pay prices that are necessary to grow the pork industry with the current feed costs.  Something is going to give and I'm scared its going to be money flowing out of the pork producers pockets again real soon and it is going to be flowing out at a fast pace.

 

Sorry for all the rambling, maybe I'm just to independent to see everything being rosy.    With that statement I'm talking about the economy in general.

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