Upcoming Event - Indiana Certified Livestock Producer Program Instructional Session

Indianapolis - The Indiana State Department of Agriculture (ISDA) is hosting producer workshops as part of the Certified Livestock Producer Program (CLPP), a voluntary program that recognizes farmers for their commitment to innovative and top industry standards. The workshop will be held on Nov. 7 and Nov. 8 at the Southern Indiana Purdue Agricultural Center in Dubois.

Each workshop is free of charge and will include industry experts in the five areas of focus for the CLPP program: commitment to the environment, food safety & animal well-being, emergency planning, biosecurity and being a good neighbor in their community. 

"The Certified Livestock Producer Program gives an opportunity for livestock producers to publicly demonstrate their commitment to their farm, their family and the future," said CLPP Program Manager John Nagle. "The instructional sessions are the first step toward completing the program, and offer valuable insight from experts in the livestock industry that will benefit each producer’s operation and community."

Who:
Livestock producers of all sizes and species

What:
Free CLPP Instructional Sessions

When & Where:
November 7th & 8th

Southern Indiana Purdue Agricultural Center
11371 East Purdue Farm Rd, Dubois, IN 

5:00 pm to 8:30 pm EST both evenings

Cost:
No cost for producers to attend, and dinner will be provided

To register please visit the CLPP page on the ISDA website, http://www.in.gov/isda/2395.htm.

Contact John Nagle at jnagle@isda.in.gov or (317) 232-8770 for questions or more information.

Weekly Outlook - Large Losses Still Loom for Pork Industry

Pork producers are expected to continue to suffer very large losses in the next six months after already operating in the red for the last six months. These large losses have been brought on by the extreme feed prices due to the drought. There is little producers can do to change the overall situation for the industry since the pigs that will represent these large losses are already on-feed. The pigs that are here today represent producers’ plans earlier this year when they were hopeful for $5 corn prices.  <Read More>

Weekly Outlook - Pork Industry Faces Record Losses

A tsunami of red ink is about to wash across the pork industry which is facing losses unseen even in the fall of 1998 when hog prices at times approached zero value. The stressors include: more hogs than expected, rapid sow liquidation now underway, and record feed prices. Losses in the final quarter of this year could be $60 per head, exceeding the previous record quarterly losses of $45 per head in the fall of 1998.

Slaughter numbers in the past two weeks have been up six percent when only about one percent more hogs were expected. This has caused a $10 per hundredweight drop in live prices since late July, with prices now in the low-$60s. The source of those extra hogs is probably related to some delayed marketings due to the summer heat, to a desire to sell pigs more quickly before prices really tumble moving into fall, and to high sow slaughter. Projected prices for the final quarter this year are in the mid-$50s, using current lean hog futures as a base. Tragically, costs of production are expected to be above $75 per live hundredweight for the remainder of the summer, this fall, and winter.  <Read More>

Weekly Outlook - Pork Industry Faces Financial Disaster?

Drought and the impact on feed prices may be on the verge of creating a financial disaster for the pork industry and other livestock species. The crop stress which began in Indiana and Illinois is now spreading further to the west. Most of the media attention has been focused on crop producers who face large yield losses; however the animal industries may ultimately fare even worse.

Crop producers have the potential for two compensating income streams when yields are low. The first is what is called the"natural hedge." When yields are low across a broad geographic area, then prices generally rise. This is especially true when stocks-to-use ratios are tight as they are now. Under these conditions a 10 percent reduction in national yield is offset by a rise in prices that is substantially more than 10 percent. This means that revenues tend to be less negatively affected by yield losses. Secondly, many crop acres have some type of crop insurance that can help cushion the financial blow of low yields. While these conditions hold on average, there will be considerable ranges in how individual farm families are impacted.  <Read More>

Weekly Outlook - Pork Profit Outlook Gets Trimmed

The nation's pork producers are largely holding back on expansion even though the industry returned to profitability in the spring of 2011. However, higher feed prices in the past few months as a result of crop damage in South America has increased costs and reduced the profit outlook for 2012.

The breeding herd is only 0.6 percent larger than a year ago according to the latest USDA Hogs and Pigs report based on surveys conducted in early March. While sow numbers are basically stable, the market herd was reported to be two percent larger. The greater increase in market hogs versus the breeding herd is the result of continued increases in the number of pigs per litter. Producers also indicate they will modestly reduce the number of sows farrowing in coming months. Farrowing intentions are down about one percent for the spring quarter and down two percent for the summer quarter. If intentions materialize, pork supplies will only increase by about one percent in the fall of 2012 and early 2013.  <Read More>

Will Consumers Come Back to Pork? Yes!

Per capita pork consumption in the U.S. has declined sharply in the past several years due primarily to strong pork export growth. Per capita pork consumption in the U.S. averaged 50.1 pounds in 2006 and 2007 when $2 per bushel corn was still the rule. That dropped to a low of 45.8 pounds by 2011, a nine percent decrease.

Surprisingly, as U.S. per capita consumption was dropping sharply, total U.S. pork production grew by eight percent from 2006/2007 to 2012. How could total pork production grow while domestic per capita consumption was falling sharply? The answer is that U.S. pork exports expanded and now U.S. consumers have new competition from foreign buyers for limited pork supplies. There is a saying, “China is going to eat your lunch,” and that statement has some limited truth. China was the 6th largest buyer of pork from the U.S. in 2006, representing five percent of U.S. exports, but moved to the third largest buyer by 2011 representing 15 percent of U.S. exports. <Read More>

Hogs: 2012 The Best Year in High-Priced Feed Era

The pork industry is expected to have a profitable year in 2012! In fact, the level of profitability could be the most favorable during the high priced feed era. Profits in 2012 are currently forecast to be near $17 per head, which would be the highest since 2006.  That was the last year of the low feed price era when corn prices received by farmers averaged about $2.30 per bushel for the calendar year and estimated hog profits were $27 per head.

While a return to profitability is welcome news, there are deeper and more important implications. The first is that the pork industry, like most other animal industries, has made the adjustments necessary to live in a world of high priced feed. The second is that the pork industry probably has “turned the corner” on high feed prices as one looks to 2012 with abundant and cheap feed wheat, prospects for moderation in the rate of growth in corn use for ethanol, the potential for a larger South American soybean crop, and hope for a return to higher U.S. corn and soybean yields. <Read More>