Is expansion finally happening in the swine industry? In the past few weeks I’ve talked with a lot of gilt suppliers, builders and equipment suppliers and I think the answer is a resounding – YES. Many gilt suppliers are telling me of very strong sales with many of the gilts destined for new breeding site projects. There are many new breed-wean units currently under construction (generally 2500-5000+ plus in size) and permit hearings on-going for new units to be constructed beginning next spring.
In addition to expansion there are several smaller production systems and mid-sized breed-wean units being sold and/or offered for sale. Producers with cash are looking to expand and in some instances older producers with limited family interest by the next generation are selling while there is strong interest in their production capacity.
In almost every case, pigs from the sow units are destined for facilities located in the upper mid-west with access to corn and soybean meal at relatively cheap prices and a cropping system that benefits from the application of the accumulated swine manure. In the case of new ownership, the expectation is improved production and or conversion of production to a size that fits economically with the buyers’ needs.