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Veteran Advisor

Hog & Poultry talk

Yesterday, I heard a stat that maybe I knew but must have forgotten. It really is mind-boggling when you hear it. The U.S. has about 5.0 million sows. China has upwards of 50.0 million sows!! And China wants to increase their heard by 2-3.0 million more this year. And the talk is China still can't get enough pork to feed their population. So, they will need to import hogs or pork from the U.S.

 

Now to poultry. This industry is really struggling with the high feed costs. I know, that is the understatement of the year. Friday, there is a report that Pilgrim's Pride is shutting down a plant and is having trouble keeping up with sharply higher feed bills. How will anybody survive these higher feed costs that don't seem to be going away anytime soon?   Mike

 

See the story on the Dow Jones Newswire

 

 

 

 

 

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2 Replies
Senior Contributor

Re: Hog & Poultry talk

Mike, there are two ways to stay in business, cut costs or raise prices. Look at the beef industry and their reducing cow herd. Heifers aren't retained at the rates needed for growth. Sow herd is staying flat to slight reduction. The chicken industry can decide their broiler numbers within 3 months of laying. Pilgrim's Pride had the same problem 3 years ago, so didn't they learn? Rising meat prices (due to exploding export demand) are turning it into a luxury product. Hopefully we do not turn our own citizens into vegetarians in the process of currency devaluation.

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Veteran Advisor

Re: Hog & Poultry talk

Some more of the "free trade policy" liquidating equity in our country to build it internationally-----"cheap" can be the highest price word in the dictionary----kinda like the eastern cattle debacle with years of hard earned money vanishes with one wrong sale to a bad client---excellent points ""wt""  

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