Bravo to Domino’s for Sow Stall Stance
I don’t know about your house, but the Meyer household will be eating Domino’s pizza for the foreseeable future -- if not for the pizza (which is pretty good), then to reward the courage shown by Domino’s shareholders in rejecting a “request to study ending the use of pork from suppliers who confine pregnant pigs in crates.” The shareholders’ decision wasn’t a questionable one as 80% voted against the “request” and only 4% supported it. Sixteen percent of votes abstained. The company’s board of directors had also recommended that the request be rejected, saying that the issue should be settled between the company and producers and processors.
Is It Too Late for a Seasonal Hog Market Rally?
It is no secret that we are running out of time for a seasonal rally in cash hog and lean hogs futures prices. The price doldrums have continued long enough to steal the usual beginning of our annual summer rally. Is there enough time to even see one in 2012?
Pig Inventory Projections Still on the Mark
Was last week the first step in running completely out of market hogs this summer? That is a bit too much hyperbole, I know, but I always engage producers and analysts in the “PRRS-has-killed-millions-of-pigs-there-can’t-be-many-left” discussions every year. This year those discussions – and they are discussions, not arguments – have been intense at times
Pork in Cold Storage Climbing
Last week’s Cold Storage report is causing a degree of concern in the pork industry. February 29 stocks of frozen pork cuts were significantly higher than last year. A total of 624.7 million pounds of pork were in freezers at the end of last month – 8.8% larger than last month and 6.7% higher than last year. It is also the largest freezer inventory for pork figure since April 2008
PRRS Challenge Again Dominates Winter News
Perhaps the hottest debate topic in the pork industry this winter has been the extent of PRRS-driven death losses. There is really nothing new about that statement. It could have been made each of the past 10, 15, perhaps 20 years. This disease and its amazing and depressing ability to mutate and gain new levels of virulence has defied many, many good minds and undermined some very good planning and efforts. To say the least, it has been a challenge
Why the Hog Farm Count has Stabilized
The number of total hog operations held steady at 69,100 in 2011, marking the first year without a decrease since 2007 – the year USDA changed the way it counts farms. That change resulted in the first annual increase in hog operations since 1988. Omitting the 2007 counting change, 2011 is only the second year since 1980 in which total hog operation numbers have not fallen
Pork Producers’ Moods Optimistic but Cautious
I was privileged once again to be involved in last week’s National Pork Industry Forum. The meeting, held in Denver, could be classified as boring in that there were very few points of controversy. Therefore, I would characterize the events as “cautiously comfortable” due to that factor, general profitability and a clear understanding that a lot of things can go wrong if the industry is not vigilant
Understanding How Ethanol Impacts Food Prices
I’ve been forced to examine my biases over the past few weeks. The examination of conscience was driven by an invitation to speak to the Renewable Fuels Association’s National Ethanol Conference last week as part of a food vs. fuel debate
Year-End Consumption Data is Good News for Pork
The export data highlighted in last week’s report was the last piece of data needed to compute actual domestic per capita consumption and, thus, the demand indexes for December and for 2011
New Pork Export Records Set in 2011
Perhaps the worst-kept secret in recent memory – U.S. pork and pork variety meat exports set new records in 2011. New records were actually reached in November, but it’s the magnitude of the record that is impressive and deserving of further attention
Pork’s Demand Indicators Holding Strong
It appears 2011domestic pork demand will end the year showing a gain compared to 2010. I say “it appears” because the final pieces of data – December pork exports and imports – will not be available until mid-February. My calculations for December 2010 through November 2011 show demand 1.2% higher than the same period 12 months earlier. Plus, the calculations of University of Missouri Agricultural Economist Ron Plain, who used estimated December trade figures, indicate demand will be positive for the 2011 calendar year.
That record was built with solid gains in the first half of the year and “hanging on” in the second half as burgeoning exports reduced the amount of pork available in the United States and, I believe, a softening economy slowed the pace at which retail prices could be increased. Retail prices still set a record in September at $3.56/lb. and remained near that level ($3.46/lb.) in December, but steady demand would have pushed those values even higher given larger exports and concurrent lower domestic availability/consumption.
