North Central Iowa | maxflex540 - 1/30/2019 13:14
Have a question about hog market and didn't want to derail the thread below.
Do the Smithfield's and Seaboards and Triumph's of the world sell hogs according to futures prices, or do they negotiate live hog contracts (with their COP in mind) with Packers and/or Retailers?
The reason I ask is sometimes these low cycles seem to last quite awhile and if they truly are losing on every hog that goes out the door for months and months, or even a couple years, it makes me wonder how they survive.
Smithfield and Seaboard both own their own packing, so there is a very good chance they won't lose money as they are vertically integrated. They will make it on the packing side if they don't on the live side.
Triumph is made up of several integrators from fairly large players to smaller. Those members, just like with Seaboard and Smithfield, will have a better chance to be profitable than someone that has no packer ownership.
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