"The hope is that corn prices are lower by fall," said the Purdue University agricultural economist last Friday. "If we can see a crop that is a normal crop this year ... while the price of hogs drops to $60 in late 2011 and early 2012, corn might drop to $5.75 to $6 per bushel. That's about breakeven for pork produc-ers.
"It's no profit, but covering all costs including labor, depreciation on facilities ... breakeven is a normal return—no profit and no loss. It's about as optimistic as we can expect considering record corn prices for 2011."
The Pork industry has seen record low meat prices since 2008. And the price of corns as sky rocketed, since the recession that we are having buying corn is VERY expensive. How will the farmers mange? Going to the feed store the other day to buy cracked corn, I about doubled over. Hopefully prices will be able to go down.
Whats the pork producers going to do?? Instead of using corn, they alternative is DDGS. DDGS is very high in protein it consists of soybeans and some corn, the pricing is fair. Now the producers has to research and find the most effective, cheapest, nutrition way of supplying their hogs with feed. The down side to DDGS, can stunt the growth of piglets in their first stages. The world is just right on the edge of having a panic in terms of available food supplies, not only for livestock, but for humans also. Good Luck!
"It's no profit, but covering all costs including labor, depreciation on facilities ... breakeven is a normal return—no profit and no loss. It's about as optimistic as we can expect considering record corn prices for 2011."
The Pork industry has seen record low meat prices since 2008. And the price of corns as sky rocketed, since the recession that we are having buying corn is VERY expensive. How will the farmers mange? Going to the feed store the other day to buy cracked corn, I about doubled over. Hopefully prices will be able to go down.
Whats the pork producers going to do?? Instead of using corn, they alternative is DDGS. DDGS is very high in protein it consists of soybeans and some corn, the pricing is fair. Now the producers has to research and find the most effective, cheapest, nutrition way of supplying their hogs with feed. The down side to DDGS, can stunt the growth of piglets in their first stages. The world is just right on the edge of having a panic in terms of available food supplies, not only for livestock, but for humans also. Good Luck!
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