Brumm Speaks Out: A new economic climate versus last year

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Last week, I was at a production site working with production supervisors for a production system. While they spend every working day in production facilities directing the care of pigs and making individual pig marketing decisions, the supervisors really had not thought about the impact of today’s market prices on their contract producers.

On July 15, the reported net carcass price for all federally inspected barrows and gilts slaughtered in the US was $128.63/cwt (USDA LM_HG201). With an average carcass weight of 212.47 lb, the net value of every carcass averaged $273.30, a new record – again.

Once we thought about the ‘value’ of each market animal, it led to a discussion of producers risks in the event of a ventilation failure or other cause of a catastrophic pig loss in a production facility. I’ve written about this in previous blogs but it bears repeating – there is a lot of money at risk in each of our production facilities today and everyone involved in pork production needs to be aware of both the financial risks and the means to reduce the risks of catastrophic losses. With so much value in every pig, in the event of a loss someone somewhere will have to absorb the loss.

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