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Senior Contributor

Demand destruction?

We keep hearing about 'demand destruction'.

So are these examples?

Big Sky, Saskatchewan

Puratone, Manitoba

Of course all those barns tend to keep producing under a new entity but there has to be some pressure for production to be reduced.

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Senior Advisor

Maybe not

The hog unit was already in trouble financially. The loss per hog was  'their' loss as I've seen other figurres that indicate almost break even. Wouldn't be the first time hogs, milk or even grain were sold at a loss. However, it sounds as if the hogs are still in the unit - and if it is sold it will likely be at a lower price than the original value (who knows what financial mistakes these guys had). That would lower the cost of production immediately. It's also possible the strong hands might get quite a deal on interest.


In the end there may be no demand destruction that makes much difference. Having a shorter cycle is both a curse and blessing for hogs.

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