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Jeff_a_Caldwell
Posts: 979
Registered: ‎04-29-2010
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Livestock merger, citing 'more demand on the horizon'

Big news in the hog/poultry sectors, with The Maschhoffs buying GNP Company. Interesting development that could affect a lot of folks in the Midwest. 

 

The reasoning given for the transaction is that they see demand for their products increasing, and it sounds like scaling up can expose and create some new efficiencies and get more out of what they're raising. The CEO of GNP says "For the past year, our facilities have been running at capacity with more demand on the horizon." 

 

So, is this enough to prop up corn prices? Anybody out there sell corn directly to either of these companies? Think it'll move your prices higher?

 

On the flip side, what sort of precedent do you think this sets for the livestock sector? 

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Jeff Caldwell
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jrsiajdranch
Posts: 2,119
Registered: ‎05-03-2010
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Re: Livestock merger, citing 'more demand on the horizon'

This isn't bringing more animals to the trough just a new ownership structure. Those guys runs tight ship. They can see the need to corner the protein MKT. They tried to buy m2p2 but got outbid. Obviously they needed to get rid of some money.
Senior Contributor
bruce MN
Posts: 6,919
Registered: ‎05-13-2010
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Re: Livestock merger, citing 'more demand on the horizon'

[ Edited ]

It's simply the logical progression along a course that was started out upon 30 plus years ago.  Why does somebody always have to sound suprised or alalrmed when a next step is taken?

 

Remindful of the crowd at the meeting in the pld city hall when we were informed that our long time local Farmers Cooperative elevator had been sold to the "big Co-op" in the nearby bigger town.  That co-op, of course,  was eaten up by a regional cooperative formation venture less than 15 years later and now that cooperative is in the stages of merging numerous operations with another large cooperative. Onr that was built by merging of a number of locals also, one of which we were patrons/cooperators in also. 

 

Oh yeah...that town hall is also gone.  Torn down and replaced by a first class town hall/fire station in a community of less than 200, paid for with a 9/11 inspired Homeland Security grant. What a country,

 

But yeah....just the same (flexible) number of mushy fleshed white hogs raised over the fumes of their own excrement going into a global market that has no discerning demands or tastes for pork.  Just that there is some, or enough, of whatever it is that  they are calling pork presently. 

Senior Contributor
k-289
Posts: 1,756
Registered: ‎05-13-2010
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Re: Livestock merger, citing 'more demand on the horizon'

Bruce  -  " now  " these groups have add's on radio about  " we "  need to buy locally  - how brilliant  ---  

Frequent Contributor
tOTALED
Posts: 43
Registered: ‎07-11-2010
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Re: Livestock merger, citing 'more demand on the horizon'

according to ag express sow placements were a new record last quarter, its just me but eventually affect feed demand . However I also understand exports are no longer important if they are bullish #s but are if they are bearish. Please continue to change direction on this site , I need to lose weight.