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Chinese demand forecast down for soybeans and up for pork
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Kooiker
Posted 4/14/2019 21:15 (#7439846 - in reply to #7439739)
Subject: RE: You can raise hogs perfectly fine in any old dairy barn.



jocoshar23 - 4/14/2019 20:45 Not to disagree, but desperate times call for desperate measures. And we arent hitting a home run on the grain farming by any means. Low overhead to get started and cash in while going is good, cash out when it gets tough without a multimillion dollar facility as overhead. If it gets really good it will happen some, no permitting on a few sows vs large facility. The guys with established infrastructure and sow units will do really well just like the landlords from 2008-2013. The guys jumping in will be too late.





Thing is, if you're gonna do like Numbers and go buy bred sows/gilts you're already going to pay an inflated price for them.    Any close up bred females have ~$500 worth of pigs in them.     

You're gonna have to pay to get them, kind of like trying to rent more acres after corn went over $5.


Breed some open gilts today and you'll be selling hogs in ~10 months.    Which puts you in Feb which the board is at $85.    Not a bad price but not a "home run" by any means.    With good production and low costs that's roughly $40/head profit.







Edited by Kooiker 4/14/2019 21:18
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