If you need more incentive to increase your biosecurity expenditures, look no further than
That means transport biosecurity is an increasingly important issue. “The consequences of export interruption have never been higher,” says Steve Meyer, president of Paragon Economics.
He points to record levels of
Now, add in the fact that some disease issues would quickly shut down export markets, and the incentive is clear. “The big risk to the pork industry is in export interruption,” Meyer says. “We’re on track to export 4.7 billion pounds of pork in 2008. That’s over 50 percent more than a year ago and over 20 percent of our entire production.” The larger those export figures become, the more important transport biosecurity is to the pork industry.
If exports suddenly stopped, it could be financially catastrophic for the industry. Retail prices would fall about 27 percent. In the last year, retail pork prices averaged about $2.88 per pound. Without exports, prices would easily drop to $2 per pound. That may not sound like much, but it would trickle down. For example, producers have faced a 25 percent to 30 percent equity loss since last September.
“If exports ended, pork producers could face 70 percent or more in lost equity,” Meyer warns.