| Boone & Crockett - 10/4/2017 03:36 Unfortunatly, Kooiker, nobody HAS to do anything. And not everyone is going to stay in business. The strong will survive, flourish, and prosper. The weak will get trampled. I'm sorry, but I don't have much sympathy because of the endless (and I might as well say mindless) building of confinement buildings. When is enough going to be enough in the hog industry? At least in grains, there is a point where it's pretty hard to exceed. The hog industry needs another bloodbath to stop this senseless continued expansion.
You know after I wrote that I knew that someone would point out exactly what you just said and I agree, we are not guaranteed a profitable price anymore than the grain guys are.
But I still stand by the fact that someone has to pay a price that is profitable for everyone that is involved in the raising of the hog and processing the hog otherwise the industry will contract in size triggering the bloodbath (where guys sell assets for dimes/$ and contracts on new finishing buildings are void because the guy that owned the hogs went bankrupt).
I disagree about there being a point in grains that is hard to exceed, yields will continue to go up. In another decade 200 bpa corn on good ground in Iowa will be looked upon as a poor crop just like 150 bpa is now.
My brother and I had a discussion recently that was triggered by the threads about the checkoff programs and all of the complaints about them.
He said that its a never ending cycle where the checkoff groups garner more demand and producers produce more so prices never go up.
My contention is that we are going to produce more grains through increased yields (and that will flow through to increased ethanol/livestock production) and we need more demand just to maintain prices never mind increasing price.
Edited by Kooiker 10/4/2017 07:26
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What is the market telling us to raise?
