Pork Commentary

Jim Long President – CEO Genesus Inc. info@genesus.com

World Pork Expo Report

June 8, 2015

Last week we participated at the World Pork Expo, which is held annually in Des Moines Iowa. Our Observations:
  • The World Pork Expo (WPX) was well attended. There were lots of visitors for the exhibitors.
  • The WPX was professionally organized by the National Pork Producers Council (NPPC). The WPX is a major revenue generator for the NPPC.
  • Producers were in an upbeat mood. Profits are decent and last year was the most profitable ever.
  • There is sow herd expansion underway. Sow barns are being built and planned for. We expect 200,000 new sow places are in play. No doubt the production base is expanding.
  • It appears that Prrs could be a factor. We heard several anecdotal stories of dead sows, abortions, and dead pigs. Partially filled nurseries, and finishers. Sow herd de-pops. Major hit areas – Carolinas – Illinois. How many lost pigs? Anyone’s guess!
  • Producers were positive about how the corn – soybean crops are growing. So far, so good. Several comments that with things growing like they are, corn could have a 2 in front of its price per bushel this fall.
  • Several producers and industry people discussed what is happening in China. We all know that a bump in pork exports would support prices. We met with several Chinese industry people who confirmed the massive sow herd liquidation that has been happening in China.
  • There were producers from Canada and Mexico at WPX. We do not sense any sow herd expansion in Canada. Mexico on the other hand seems to be looking at expansion. We heard plans for over 50,000 sows. Profits have been good in Mexico and this is leading to confidence in further growth in production.
  • There seems to be a further push in different ways to approach pork sales – antibiotic free, humane, enhanced, breed selection, and housing type. All are becoming different ways for groups to market. Not sure there is much volume involved at this point but it certainly is giving consumers more pork options.
  • There appears to be an evolution in trailers for moving pigs. Different manufacturers are offering trailers with options of movable floors, built in fans and water, back lifts, and multiple axles. There appears to be a new direction with some being powered by animal welfare considerations.
Summary A good positive World Pork Expo. It appears PEDv has mostly disappeared. Prrs has gone to the forefront of diseases again. Expansion is underway. Good thing new plants in Michigan and Iowa are coming on stream hopefully in 2017.

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