cropsey, il 61731 | Suey - 9/10/2009 18:31
We sure hope that none of our neighbors that are contract finishers get caught by the biggie in our area that is filling all of the buildings in our area. So far there are no rumors of any problems at all.
They are having tougher times than usual, but seem in a good spot with mother cargill. I don't think they have slowed down anything and stand a strong chance of growing when this is all done.
From what I can see it's all kinds of operations that are getting taken out. A lot of it depends on your equity position when this all started. The rantoul packer stiffing growers hurt pretty bad as well - not a good time to not get paid. If I were to establish a 'pecking order', it appears the guys that just buy weaners/feeders and corn got/are getting hammered first since they have very little flexibility. I expected the super bigs to be shutting down more since they buy all their feed, but maybe they did a better job marketing than the ethanol guys did. Next would be anyone buying significant amounts of corn the past 2 years - tends to empty even deep pockets. Sure you could talk about the lost of opportunity cost of selling the corn, but cash and survival trumps that. The h1n1 price decline pretty much got everyone, so everyone's problems just got amplified.
It's likely the 300 sow farrow to finish using their own corn stays in, but the market doesn't care about that volume anyway. The biggest problem those operations have is having future generations interested in keeping it going.
Thanks,
Pat
Ps: but hey oct hogs are $53 lean ($39.75 live - closer to $44) |
hog farms liquidating in ur areas??
