Pork Production

Question 1

Why is pork production concentrated in Iowa?

What about North Carolina?

1. Iowa
2. Minnesota
3. Pan handle of Oklahoma (seaboard farms)

Answer 1

That is where the feed is located

Corn & soybeans

Smithfield is located in Virginia so they put lots of hog farms in North Carolina.

Question 2

Why do pork numbers fluctuate so rapidly?

Answer 2

Short generation interval

6 months; average pigs weaned is 11 per litter (farrows twice)

Question 3

Why was there in influx in pork production in the U.S. in 2019?

Answer 3

• China was hit with African Swine Fever (ASF) and had to liquidate much of their pork numbers.
• Large population to feed

Question 4

T/F: Pork production is vertically intgrated

Answer 4

True

Question 5

Segments of Pork Production

What are integrated producer-packers?

Answer 5

They own packing facilities, regulate how fast or slow pigs are processed

Question 6

Segments of Pork Production

What are producers with packer commitment?

Answer 6

• Deliver pigs to major packer with a definitive agreement
• Own pigs and barns (own the genetics)
• Some producers have joint or partial ownership of packer business

Goal is to get product to market as efficiently as possible. Guaranteed harvest of product via agreement

Question 7

Who are the top vertical integraters in the U.S?

Of the 6 million pigs, 4 millon are in the top produers

Answer 7

• Smithfield (owned by China)
• Seaboard
• Pipestone (Minnesota)
• Prestage
• JBS
• Tyson
• Hormel (Minnesota)
• Clemons (Pennsylvania)

Question 8

Segments of Pork Production

What are independent producers?

Answer 8

• Family-owned
• Own, raise, and sell pigs by themselves

Effected by the market, can take the highs and lows of the market

Question 9

Segments of Pork Production

What are contract growers?

Most popular segment in the U.S.

Answer 9

• Own barns and land, but not the pigs
• Also known as partner-farms or contract partners
• Receive veterinary and technical support from the business they are contracted with

Question 10

Segments of Pork Production

What are niche and specialty producers?

Growing segment in the U.S. (grass-fed, road side stands, etc.)

Answer 10

• Leverage a specific production attribute as a marketable benefit to consumers

Question 11

Segments of Pork Production

Who are show pig producers?

Answer 11

• Raise pigs to be shown to producers and exhibitors
• Full timers, hobbyists, yourth exhibitionists
• Primary geographies: West/ Midwest/ South/ East

No regional distinction

Question 12

What are the 6 segments of pork production?

Answer 12

1. Integrated producer-packers
2. Producers with packer commitment
3. Independent producers
4. Contract growers
5. Niche and specialty producers
6. Show pig producers

Question 13

What are the biggest challenges for pork production?

Answer 13

1. Foreign animal diseases (FAD) Biggest challenge for pork producers (African Swine Fever, Porcine Reproductive Respiratory Syndrome, Porcine Epidemic Diarrhea Virus)
2. Input costs
3. Export trade: 25% or production is exported (highly diverse)
4. Showcasing production practices
5. Protecting natural resources
6. Human resources
7. Engaging the public

Dip in pork numbers in 2019 was largely due to PEDV

Question 14

T/F: Science does not equal truth

Why?

Answer 14

True

Peoples’ perception of reality can equal their truth