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November/December 2006 Issue
Year-end potpourri
by Darrell Anderson
Here we are at the end of another year in the swine industry. Fortunately, it has been a pretty profitable run for most producers. At the end of October, U.S. pork producers had enjoyed a record-setting 33 consecutive months of profitability. That has never happened before, and we may never see it again, but congratulations to those of you who were able to enjoy it.
Global consumption of pork continues to increase, and pork maintains its solid lead as the No. 1 consumed meat protein in the world. The U.S. population of many ethnic groups that highly favor pork is increasing rapidly, offering enormous niche-marketing opportunities for pork producers.
Business here at NSR has been good, as well. Recordings are up for two breeds and slightly down for the other two. Transfers are up as a whole, and shows and sales have been very active. Magazine revenue will set a new record this year, as more breeders and companies experience the benefit of advertising in this publication. Donations for junior activities also have reached an all-time high this year, as more breeders and corporations see how this program impacts their business.
As I write this column, the stock market has also reached a record high, and attitudes in most sectors of our economy are fairly good. All of this should point toward strong pork prices in the next year.
However, with all of this optimism come some pretty scary issues looming on the horizon. Let’s look at a few.
If you don’t know about Proposition 204, you obviously don’t live in Arizona. Proposition 204 is an initiative pushed by out-of-state animal-rights activists to ban gestation crates and other common livestock practices. A group of pork producers and pork associations have joined forces to counter the messages put forth by the radical activist groups. Ironically, their primary campaign is built around the theme, “Proposition 204 is Hogwash.” The fight has gotten ugly, as there have been death threats issued and many acts of personal-property destruction against opponents of the proposition.
The sponsors of Prop 204 are spending $1.03 million on television commercials for their political agenda to end meat production in the state.
Now, if you sit back in your recliner and mutter, “Well that is a long way from the Midwest,” you could be dead wrong! Ending hog production in Arizona wouldn’t dramatically impact the availability of fresh pork in most supermarkets, but a victory in this battle will only fuel the opposition’s fire to take their “dog and pony show” to yet another state. Rumor has it that Wisconsin is one of their next targets. That’s pretty close to the Midwest!
Another year-end issue is the passage of the Horse Slaughter Protection Act by the U.S. House of Representatives. This controversial bill sailed through the House and will be considered by the Senate next.
Why should hog producers worry about stopping the slaughter of horses in this country? It’s not much of a stretch to assume that if it is inhumane to harvest horses for human consumption, certainly many would consider it inhumane to harvest hogs as well. This bill could set the stage for many major fights with animal rights groups in the next few years.
One real issue taking shape is the escalating price of corn, as carry-over stocks are dangerously low and the much-publicized demand for ethanol plants materializes. I recently heard an ag economist predict that Iowa could be a net importer of corn in three years, and that in five years, the hog industry might shrink in this country, as there simply would not be enough corn to sustain current production. This issue is real and will be interesting to watch over the next few years. It could have a major impact on the survivability of many of the large, corporate hog complexes, as they purchase every bushel they feed.
One other issue that bears watching is the much-anticipated FDA announcement that milk and meat from cloned animals and their offspring can be marketed for public consumption. That decision is based on new data showing that such products do not pose more nor different risks than any other meat item. Of course, several activists groups have already filed a legal petition calling on FDA to issue a “moratorium on the introduction of any food made from cloned animals.” This will be another interesting battle.
Well, we will soon turn the calendar over to 2007. Let’s see which of these issues impact our business during the next 12 months.
