Jim Long’s Pork Commentary – National Pork Industry Conference (July 10, 2017)

National Pork Industry Conference

This week the National Pork Industry Conference in Wisconsin has 950 attendees.  We were fortunate to speak.  Here are some of the text of our talk:



Genesus presentation at National Pork Industry Conference

Quick Facts

  • 90% of all Pigs in the world are not raised in USA-Canada
  • USA pork exports over 25% of production – #1 pork exporting country in the world
  • Canada pork exports – 50% of production – #2 pork exporting country in the world
  • 44% of all meat eaten in the world is pork.

Russia

  • Russia has about two million sows
  • Has basically stopped all Pork Imports
  • ASF-Europe,  Paylean- Canada & Brazil – renewed EU ban for 1 year
  • Rapid modernization ongoing – about 25% of production still back yard
  • The Russian Hog Price in some weeks recently 91 Rubles a kg 78.49¢US/lb – feed costs similar to USA – cost of production 50¢ USD/lb. liveweight
  • Disease major impediment to expansion – African Swine Fever creates real uneasiness for investors
  • Industry has varied production results
  • Industry ownership strong links to government  – border controls – leading to profits of $75 USD per head.
  • Farrow to Finish – no contract barns all capital $10,000 per sow – debt repayment 8 years Investment – 2,500 sows – $25 million USD
  • Genesus  has exports

                                                                                                             Genesus Nucleus farm in Russia

China

  • 1.3 billion people – half the worlds hog production
  • Rapid Industrialization of swine production as there is a transition from backyard and small farms to large modern farms
  • Hog Prices in China were $1.43 USD/lb. ($2.75/kg) a year ago. Currently 90¢ USD/lb.
  • Consumption has increased 400% to 40 kgs per person since 1990!
  • High Disease will limit productivity – Many farms at 14.98 pigs sold per sow per year. 2800 lbs. per sow per year.
  • Corn prices have gone down $10.50 U.S per bushel to $5.50
  • Europe has gained most of import market – equivalent to 5 million hogs +
  • New environmental laws force relocation of farms due to environmental up to 10% of national inventory

Genesus at Wens Group in China

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This post was written by Genesus