Honored Advisor
Posts: 11,091
Registered: ‎05-13-2010

Re: We're all Chinese now....

[ Edited ]

Bruce, had the same reaction to the " good for hog farmers" comment, when I heard it on NPR yesterday. I think that speaks volumes, in direct relation to another point that the radio and the friend who broke the news to me on Wednesday both invoked as an option: " local" foods.

It is hard for anyone not in this industry to grasp thst it is not in any way realistic to think that small producers could fill the gap, if Smithfield's flow of protein got diverted elsewhere. It isn't just that environmental regulations and feed costs, not to mention just building costs and/or land costs, are cost-prohibitive for entering ag or making such a diversification today.

The infrastructure - of small packing houses and buying stations - has been virtually bought out and mostly shut down, in most cases by Smithfield itself. Even if farmers wanted to step back into hog farming, which would make next to zero sense, given current feedstuff costs and capital investment required to climb int production, where would they sell their pigs, and who would harvest them?

The state news channel is getting ready to report on this story in a few minutes. It will be interesting to hear how they spin this...meanwhile, I meant the title of this thread in more ways than one.

I cannot recall the rankng North Carolina has in feedstuff imports from outside our borders, but an NCDA staffer once quoted that if we were a country, we were would be somewhere way up the totem pole of feed importing nations. We buy more of what you guys grow than most whole countries...which means many of you will be wedded to the Chinese, too. How do you like them apples?