sw ontario | Kooiker - 3/16/2023 22:53
What is driving the expansion?
Hog prices suck and the pork cutout price sucks so there isn't a lot of room for hog prices to improve. Feed prices are sky
I have no idea as the ones expanding already are large . And they farm/own a lot of land. Building costs today are just crazy like everything else also. I would think just running there cash crop operations would be much easier and more profitable .
2022 was a really tough year for packers, Olymel is prime example of what happens when you expand fast and big on borrowed funds.Bought big hog farms.
Part of Co-op Federee in Quebec and there grain part bought most if not all of the Cargill country elevators a few years ago under Sollio name, Last fall they announced they are selling or closing all of them and as og end of Feb. they are closed,not sold yet
Maybe just me , but someday the used late model machinery mkt. is going to correct . A lot of farms have went to flipping tractors and combines on leases but that will get expensive if used mkt. softens.
Idk why farmers are paying $4-500k cdn. for used 8R tractors out of warranty
Cropping & hogs seem to be doing another consolidation.
Supply Management for feathers & dairy gets picked on ,but those farms make money and don't rely on gov't programs. Kind of like a good union job with benefits
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Banks calling in Ag loans ?
