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| We currently feed pigs for a "small guy" who has been great work with. Pays a month ahead, very flexible, not strict on building set up, pays same as the "big guys", and we have had very good luck with the quality of pigs that we are getting. We are currently feeder to finish, have about 1,000 head at a time that we feed.
We have been approached by some of the bigger players in our area about putting up a new 2,500 head building either wean to finish, or feeder to finish. Most everyone knows how these work. 12 year contract, and the building is paid off, working for the s*** until then and equity in the building.
We can also expand with the "small guy" that we currently work with and build a new building, either 1,200 or 2,400. My question is: What do you think is a better option if we are going to make a large capital investment? To go with a bigger outfit that has less risk of going under if something happens to the market, or stick with what we currently have which has worked well but with his size there is the risk that a market down turn could hurt them a little more? Also what are your thoughts on the size of the building?
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