PEDV, Profits Soaring, Temperatures Rising, Weights Falling (Maybe Not So Much!)
Current pig market weights are through the roof and at all-time highs for the modern period of meat pig production. We should be noticing a big decline shortly but…
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Feed Conversion Ratio: the new economics
The next time you hear someone over lunch tell you the value of a tenth improvement in FCR, unless they are drawing a distribution on your napkin, tell them you don’t run an average pig business so you are not interested in their average values.
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Feed Conversion Ratio: critically important but often misused
Feed efficiency as it is measured by the feed conversion ratio (FCR) is basically an engineering concept. There are a lot of misconceptions about feed efficiency and even more surrounding the economics associated with it.
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Meatless Monday as an economic survival strategy rather than an ethical choice?
Increased prices for pork will lead to decreases in quantity demanded by the vast majority of consumers, export and domestic. This is especially the case in the current structurally high unemployment situation which has seen inflation-adjusted per capita personal income fall steadily since the market crash of 2007.
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Smithfield Foods purchase by Shuanghui International just a piece of a much bigger strategy
Shuanghui International’s goal is the Chinese government’s goal, to acquire long-term, low cost sources of China’s favorite meat by forming long term, low risk, globally coherent pork and agricultural resources chains and they are well on way to that goal.
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Any takers for $100 weaned pigs?
Time will tell if PEDV is the cause but weaned pig and feeder pig prices began to turn up in June, a couple of months ahead of their traditional seasonal bottoming with the turn toward seasonal highs which peak usually in February or March.
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29-Mar-2016Brian.J.McDonaldI'm 39 and been around the pigs all my life.
A celebration of the business goal of pork production: maximization of profits
When you earn a profit, you have created more tangible value than the cost of the scarce global resources used to create your final product.
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How to budget feed costs in the presence of high price variation?
This is done by moving from single most likely value to ranges of possible outcomes with an assigned probability
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Political policy, a source of price, cost and profit variability
Political decisions in the form of new laws, regulations, permitting requirements, etc. are extra-market forces which can cause market costs and revenues to swing significantly from the pathway set down by fundamental forces, like supply and demand.
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Understanding the market dynamics of feed ingredient costs
Understanding the market dynamics of feed ingredient costs is crucial not only to manage overall costs of production but to ensure effective strategies in purchasing, margin hedging, peak line of credit acquisition and liquidity or financial risk management.
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